Daily Auto News
“If you were planning on going to buy a car this weekend using [the federal 'cash for clunkers'] program, the program continues to run,” White House Press Secretary Robert Gibbs told reporters this morning, according to the New York Times. “If you meet the requirements of the program, the certificates will be honored.”.
The government’s Cash for Clunkers rebate program has not been suspended, administration officials insist, despite media reports to the contrary. Congress is considering additional funding in an emergency bill expected to come to a vote today before Congress leaves Washington for a planned recess.
The Times reports, “The White House said Friday that the ‘cash for clunkers’ program was still alive even though new-car shoppers appear to have already snapped up all the $1 billion that Congress had appropriated for it.” Gibbs “said the administration planned to meet with Congressional leaders to find ways to save the program. He declined to say how long the program could continue without an infusion of funds.”
Senator Carl Levin (D – Mich.), however, advised potential car shoppers, “We don’t know how long it will last, so people should go to their car dealers now if they want to take advantage of the program.”
The Detroit News reports, “The White House and Congress are working on an emergency bill to add $2 billion to the “Cash for Clunkers” program to keep it alive, two congressional aides said today.” An emergency measure to extend the funding, called H.R. 3445, has been introduced in the House of Representatives. No Senate equivalent has yet been introduced.
The House is scheduled to adjourn for its August recess this afternoon, while Senators leave Washington next week.
“Meanwhile,” CNN Money reports, “the Transportation Department is sorting out how much of the plan’s funds have already been committed.” The department has a significant backlog of unapproved transactions, which may exhaust the available funding by the time they are processed.
Individual dealerships still face a tough decision over whether to accept more Cash for Clunkers transactions while the debate in Washington goes on. The New York Times notes, “Representatives of the nation’s car dealers said Thursday that they had been told by the Transportation Department to stop offering the rebates because the funds had been quickly exhausted,” but the White House announcement appears to contradict that statement.
We have received sporadic reports of dealers asking potential buyers to sign a pair of sales contracts – one to be honored if the government accepts a trade-in, the other if not. We’d advise buyers to be cautious about committing to such an uncertain pact, and stay tuned – we’ll update this page as the debate continues.
If you’re interested in the Cash for Clunkers program, check out our Cash for Clunkers page. For the latest news on the program, check out Cash for Clunkers news.
