Cash For Clunkers Bill Update

Monday, August 3rd, 2009

The news on the Cash for Clunker Bill is confusing at best. The House did pass a $2 billion dollar financial extension last week before leaving for the month long summer break, however, it remains to be seen as to whether or not the Senate will approve the bill before they shut down for the summer. There is strong opposition to allocating additional funds to the cash for clunker program, yet, at the same time, it is one of the most visibly effective stimulus programs the government has undertaken. The cash for clunker benefits Main Street and Wall Street at the same time, a dynamic that has not been present in the allocation of other stimulus funds.

To add to the confusion, the CARS program website sent out an email over the weekend advising that qualifying cash for clunker cars could still obtain a credit. Then, today, the media reports that the program will be honored through tomorrow. Is the program on or off? Who knows!

On top of that, economists are questioning whether or not the cash for clunker program is out of funds. This is a legitimate concern, as last week, I reported that the core issue seemed to be overwhelmed computer systems and an inability to keep pace with the paperwork generated by the program. Once the Cash for Clunker program catches up and issues a final tally, no one really knows how much of the original $1 billion has been spent.

The best thing to do is check with your dealer and keep an eye on media reports. In addition, consider contacting your congressional representative and letting them know you are in favor of additional cash for clunkers funding. Public support may very wall sway the vote on the Senate floor.

Tags: CARS program, cash for clunker qualifying cars, cash for clunkers bill
Posted in Uncategorized | No Comments »