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Obama Signs 'Cash for Clunkers' Into Law

Posted: Jun 25, 2009 11:07 a.m.

President Obama has signed the controversial "Cash for Clunkers" bill into law.  The provision, the AP notes, was attached to "a measure keeping the wars in Iraq and Afghanistan from running out of money." 

Reuters reports, "The initiative to help reverse a sharp slide in U.S. auto sales this year will take effect in 30 days under direction of the Transportation Department."  Supporters "hope the measure prompts up to 250,000 vehicle sales, which are running at an annual rate of just under 10 million for 2009."  Proponents say the measure will also help reduce air pollution and reduce U.S. dependence on foreign oil by pulling less-efficient, high-emissions cars off the road.

Some, however, are skeptical. Business Week notes, "Some say the eligibility requirements are too stringent for the program to have much effect. Others say the government has already spent too much to help the car industry. There are also questions about whether the folks driving those clunkers can afford brand-new wheels."

Reuters reports that "Congress funded the program through September 30," however, we should note, interested buyers may need to act before then.  The government has provided just $1 billion in funding for the program - that amount could be paid out before the September 30 date.  Read our our Cash for Clunkers FAQ for details on how to participate.

To keep up to date on the latest developments, check out our Cash for Clunkers news page, where we've gathered the latest cash for clunkers news and what it means for you all in one place.  If you already know which car you want, you can contact local dealers here.