
The Car Allowance Rebate System otherwise known as "cash for clunkers" is receiving a $2 billion tuneup after the House of Representatives voted overwhelmingly to jump-start the program in a 316-109 vote on Friday. A much need injection of cash was necessary after CARS had already siphoned off the $1 billion that was budgeted for the program within a week of its launch.
"I want to thank leaders in the House of Representatives for working quickly and in a bipartisan way to pass legislation that will use Recovery Act funds to keep "Cash for Clunkers" going," said President Obama. "The program has proven to be a successful part of our economic recovery and will help lessen our dangerous dependence on foreign oil, while reducing greenhouse gas emissions and improving the quality of the air we breathe. I urge the Senate to act with the American consumers in mind to pass this important legislation."
White House and Transportation officials had been sending mixed messages late in the week as to whether there was any more funding available for the program. The White House said that it was evaluating its options while the DOT was alerting lawmakers that they could suspend the program on Friday due to a lack of funds.
The once maligned program provides cash incentives of $3500-$4000 for consumers who trade in older vehicles for new more fuel-efficient models. CARS has proven so successful that an estimated 250 000 cars were sold in its first week.
Therein lay the problem.





