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Senate Extends 'Clunkers'

By the Associated Press

Posted Aug 6, 2009 7:31 PM CDT

(AP) – Cash for Clunkers lives. As expected, Congress tonight sent President Obama legislation with an additional $2 billion to extend the program. The Senate approved the money on a 60-37 vote after administration officials said the initial $1 billion had run out in only 10 days. The House voted last week to keep alive the program, which gives consumers up to $4,500 in federal subsidies if they trade in their cars for new, more energy-efficient models.

"The reality is this is a program that has been working," said Sen. Debbie Stabenow, a Michigan Democrat, calling it a boon to consumers and businesses of all sorts. But the bill had its share of critics. "What we're doing is creating debt," said GOP Sen. Judd Gregg. "The bill to pay for those cars is going to come due on our children and grandchildren."

Cash for Clunkers lives.
Cash for Clunkers lives.   (AP Photo/David Zalubowski)
A crane lifts a flattened car to a shredder at Gershow Recycling Corp. in Medford, N.Y., Thursday, Aug. 6, 2009.
A crane lifts a flattened car to a shredder at Gershow Recycling Corp. in Medford, N.Y., Thursday, Aug. 6, 2009.   (AP Photo/Mark Lennihan)
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COMMENTS
Showing 3 of 8 comments
2-bits
Aug 7, 2009 12:51 PM CDT
I would love to trade in my 1997 Rav 4. Unfortunately, I made the mistake of buying Japanese (instead of buying an American gas guzzler and THEN trading it it in and buying a Japanese car), and my gas mileage too good.
justme
Aug 7, 2009 12:45 PM CDT
It is expensive and we will have to wait a year or two to see if it really made any difference. It might be that people in the market for a car in the next year or two jumped in now for the cash. Good for them but in the end it may mean lots of car sales now followed by no car sales later. Even this congress can;t justify spending this kind of money forever. Law of diminishing returns applies here.
Sonny_Crockett
Aug 7, 2009 12:36 PM CDT
It's aliiiiiiiive.... Cash for clunkers is back... And this time...It's personal... ( At least for the people who criticized it for fizzling out ) oh !

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