How Long Will the Cash for Clunkers Program Last?

Question: How Long Will the Cash for Clunkers Program Last?

Cash for Clunkers is a federal program designed to stimulate U.S. auto sales and help the environment by providing an economic incentive for consumers to replace old, low-mileage vehicles with new, fuel-efficient models that are safer and emit less pollution and fewer greenhouse gases.

Answer: Under the original proposal, the Cash for Clunkers program would have been in effect for one year, but the bill Congress passed in June 2009 provided only $1 billion in funding. That was supposed to be enough money to keep the program going until November 1.

That turned out to be an optimistic estimate.

Less than a week after Cash for Clunkers officially got under way, the program was running short of money and Congress was forced to allocate another $2 billion to keep it running through Labor Day 2009. By the time the entire $3 billion is spent, an estimated 750,000 new fuel-efficient cars and trucks will have replaced the same number of gas-guzzling clunkers.

The original one-year program was expected to cost approximately $4 billion to $4.5 billion and to replace a million polluting, low-mileage vehicles with new fuel-efficient models. Given the rate at which consumers are flocking to aut dealerships to take advantage of the Cash for Clunkers rebates, however, adding another $1 billion to $1.5 billion to the $3 billion already allocated might not keep the program going for more than another few weeks.

Cash for Clunkers FAQ:

• What is the Cash for Clunkers Program?
• How Does the Cash for Clunkers Program Work?
• What are the Benefits of the Cash for Clunkers Program?
• What are the Drawbacks of the Cash for Clunkers Program?
• Who is Eligible for the Cash for Clunkers Program?
• How Much Will the Cash for Clunkers Program Cost Taxpayers?
• What Happens to Old Cars Under the Cash for Clunkers Program?
• How Long Will the Cash for Clunkers Program Last?