Cash For Clunkers Out of Cash

For a program that was supposed to last until November, Cash for Clunkers is quickly, and I mean light-speed-quickly, running out of voucher money. The $4,500 that consumers were supposed to get when they trade in their clunker is not guaranteed anymore.

On Thursday evening, car dealerships across the country were told to stop the Cash for Clunkers program, only a week after the program began. While there’s still confusion as to whether the money is there and consumer will get their voucher, or whether the program is in fact suspended, it is known that the $1 billion that was allotted for the Cash for Clunkers program is just about dry.

The White House said on Friday that “cash for clunkers” was still alive, Matthew L. Wald of The Times is reporting. Robert Gibbs, a White House spokesman, said the administration was looking for ways to continue the program. “If you were planning on going to buy a car this weekend using this program, the program continues to run,” he said. “If you meet the requirements of the program, the certificates will be honored.” Mr. Gibbs said the administration planned to meet with Congressional leaders to find ways to save the program. By the way, the “money meter” has been taken down from the C.A.R.S. Web site. —NYTimes

According to many sources, including the Phoenix Business Journal and the Detroit Free Press, congress is considering pumping $2 billion more into the Cash for Clunkers program to keep it alive. The money will come from unused recovery funds, and congress is hoping to get a vote by today (Friday).

Unlike many economic-growing ideas that have come out of congress and the white house, this is one of the few that has actually worked. Other voucher and tax rebate programs for energy efficient technologies has also been effective.

So, the real question is this Cash for Clunkers program helping? The answer: a little bit. Many car companies are seeing a rise in sales as compared to last year, and Ford Motor Company is reporting a “dramatic” rise.

For more information on getting out of debt, visit http://www.thedebtsettlementprogram.com.