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Government Cash for Clunkers Program is Broke
The U.S. Governement’s cash for clunkers program officially known as the Car Allowance Rebate System has already run out of money six days after it began. The program was supposed to run until November 1st, 2009 if the funds didn’t run out. No one expected the program to be this popular and deplete the program’s funds in less than one week.
The cash for clunkers program gives a purchaser or leaser of a vehicle a credit of either $3,500 or $4,500, depending on the type of vehicle purchased and the difference in fuel economy between the purchased vehicle and the trade-in vehicle.
I believe the program should be expanded by billions! Anything that is getting folks out buying big ticket items to help the economy, the automobile industry and the environment should be kept going.
Another bit of good news is all valid transactions that have occured so far under the Car Allowance Rebate System will be honored. Debbie Stabenow, a Senator from Michigan, is asking Congress and the Obama Administration to provide more funding for the program.
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