The federal government injected $2 billion worth of funding into the Cash for Clunkers trade-in program just in time, it appears. The initial $1 billion worth of funding dried up on the day President Obama signed the extension into law.
Autoblog reports, "As of last Friday, August 7, US dealers submitted 245,384 Clunker claims totaling $1,030,000,000." The program may not have formally run out of money that day - Department of Transportation officials have not provided data on how many of those claims were approved for reimbursement.
Automotive News notes that the Obama administration had "guaranteed payment only on claims in the pipeline before the Senate decided whether to pass a proposed $2 billion extension." DOT data show that there was a surge of last-minute sales as dealers and buyers struggled to complete their deals before that deadline. AN notes, "claims increased 33 percent" in the last two days before the deadline.
Autoblog adds, "What's notable about the 33% jump from Wednesday to Friday is that there was no guarantee that the Senate would approve an additional $2 billion in C4C funding on Wednesday. So the dealers selling new cars were flying without a net. Luckily, for those same dealers, the Senate approved the extra dollars on Thursday and President Obama signed the extension into law on Friday."
If you're interested in the Cash for Clunkers program, check out our Cash for Clunkers page. If you're ready to buy, contact local dealers. For the latest news on the program, check out Cash for Clunkers news.
