The government’s CARS (Cash for Clunkers) Rebate program, which offers consumers a rebate of $3,500 – $4,500 for trading in an old car, has proven to be far more popular than anticipated. Car shoppers have exhausted the $1 billion put aside for the program in just one week, prompting the U.S. House of Representatives to pass an emergency legislation authorizing an additional $2B for the program.
Robert Gibbs, White House Press Secretary, announced that the administration believes that enough of the original $1 billion remains to cover sales through the coming weekend and next week when the Senate votes on the bill. But given that the original bill launching the program had many detractors in the Senate, a swift passage for the additional $2 billion might not be guaranteed. In fact, even the $2 billion amount could change (for better or worse) before the bill is officially approved.
A question that should be running through everyone’s mind is whether the additional funding is enough. If the original $1 billion only lasted one week, then we should expect the additional $2 billion to last only two weeks. But who’s to say the second round of buyers would jump on the program as much as the first round of buyers?
Source: Detroit News