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US Suspending Cash for Clunkers: It's Too Popular

By the Associated Press

Posted Jul 30, 2009 6:45 PM CDT

(AP) – The government plans to suspend its popular "cash for clunkers" program amid concerns it could quickly use up the $1 billion in rebates for new car purchases. The Transportation Department called lawmakers' offices to alert them to the decision to suspend the program at midnight Friday. The program offers owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle.

Through yesterday, about 23,000 vehicles had been purchased through the program and nearly $96 million spent. But dealers raised concerns about large backlogs in the processing of the deals, prompting the suspension. It's possible that dealers already may have surpassed the 250,000 vehicle sales funded by the program. "There's a significant backlog for 'cash for clunkers' deals that make us question how much funding is still available in the program," said a spokesman for a dealers association.

A Cash for Clunkers sign hangs in front of a Subaru car dealership in Oregon City, Ore.
A "Cash for Clunkers" sign hangs in front of a Subaru car dealership in Oregon City, Ore.   (AP Photo/Rick Bowmer)
A car turned in as a clunker sits in a dumpster at Capitol City Buick Pontiac GMC  in Berlin, Vt.
A car turned in as a clunker sits in a dumpster at Capitol City Buick Pontiac GMC in Berlin, Vt.   (AP Photo/Toby Talbot)
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COMMENTS
Showing 3 of 14 comments
Timinator2K
Jul 31, 2009 12:03 PM CDT
Yes, SUSPEND every Gov't program (Obamakare) before it blows up in our faces.
Snarfeh
Jul 31, 2009 10:31 AM CDT
@pulp - Evidently that is the case. And I meant AP edited the piece, not added to it. At least, not to my knowledge do they *add* to it. So, it gets whittled down along the way. However, Newser does provide links to complete article except in these cases. Maybe they will see your query and start linking back to, at the least, the original AP version.
pitiful_pulp
Jul 31, 2009 9:17 AM CDT
so the author that wrote the original does not edit the version that makes it to newser. an additional two outlets: AP & Newser "edit" from the original source?

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