• Aug 6, 2009
Cash for Clunkers lives on. The Senate passed a $2 billion extension late tonight with a vote of 60/37, giving customers the opportunity to purchase about 500,000 more vehicles through the program. The Obama administration estimates that most or all of the original $1 billion was spent in a matter of only ten days and it's expected the additional $2 billion will only last through Labor Day.

Before voting on the bill, several amendments to the program were shot down. One amendment, which sought to relegate the program only to lower and middle income families, was denied with a vote of 65/32. Another amendment to make up the $2 billion by cutting from other programs lost by a 51/46 vote.

So far, Detroit automakers have received the majority of C4C deals, with 45.3 of the market. General Motors has the highest overall share of C4C transactions, at 18.7. The majority of C4C purchases have received the full $4,500 subsidy, which requires a vehicle to achieve at least ten mpg better fuel economy than the scrapped clunker. The $3,500 subsidy is for vehicles that have a fuel economy improvement of four-to-nine mpg. The Obama administration estimates that the average fuel economy improvement under the C4C program has improved by 61%, saving the average consumer $700 - $1,000 in fuel over the life of the vehicle.

[Source: Associated Press | Image Source: Ethan Miller/Getty]


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  • 52 Comments
      • 5 Years Ago
      Good for the ones who are waiting to turn their "Clunker" in.

      Also thanks to this, I have a job interview Friday at a Toyota Dealership. Wish me luck!
      • 5 Years Ago
      Awesome! Another bailout for the auto companies borrowed from China and paid back by tax payers. Friggin brilliant.
      • 5 Years Ago
      Did you make a responsible car buying decision? Do you have an aging 4 or 6 cylinder car that (used to) get great mileage? Yeah? WELL NO FREE MONEY FOR YOU, MR FOREIGN-DRIVING SMARTY PANTS!
        • 5 Years Ago
        Nothing a few sparkplugs and an o2 sensor wouldn't hurt :)
      • 5 Years Ago
      This is a good program that reduces dependence on foreign oil, helps average people get something they need, helps revive a struggling industry that employs thousands of American, and helps reduce air pollution. And, compared to the $120billion+ given to just one arrogant company (AIG) it's a pittance.
      Conservatives are pissed because the Obama administration is doing something good for the country that people like, so they're suddenly indignant about government spending.
      Where were these so called "concerned citizens" when George Bush used the federal government to enrich the pharmaceutical companies at taxpayer expense? His Prescription drug benefit program makes the government pay for prescription drugs, but *doesn't* allow the government to negotiate lower prices. How friggin stupid is that? It's wasteful, it adds to the debt and it's just as much "socialism" as anything the Obama administration has done.
      But, since it was done by a Republican President in concert with a Republican majority in the Senate, that's just hunky dory. They were "looking out for seniors". But when a democratic President and Congress use a government program to help a struggling nation, they're tax and spend socialists.
      Wake up already!
      The Republican Party has sunk to nothing but finger-pointing and name-calling. They have no solutions, only bile.
      If you fall for that empty bellicose rhetoric, you're a stooge.
        • 5 Years Ago
        boost: they (GOP) don't care what good government is possible of achieving unless it fulfills their goals of abusing the minority rights and protecting the rights of old white men - this was plainly clear during the past few weeks and during the past few years with the immigration debates. Republicans are nothing but regional, marginal, radical, bunch of racists and it's time that they're called out for being exactly what they are. for too long Democrats, Independents, etc. have allowed the GOP to cast itself as moderate and for the working man, but they're just for "the man", most likely white. They don't care for minorities or women, unless its to clean house or suck their Ds... (or they use men for that too and then praise jesus).
        • 5 Years Ago
        Now that right-wingers have made themselves look like typical wing-nuts once again when it comes to their loudly voiced opinions of the CARS program, we can hopefully clear the way for another program borrowed from the EU - Nationalized Healthcare.

        It's not about what -ism you can attach to the way "your" tax dollars are spent, at this point it's about what the positive effect of the program is when it's proven in the field. By the way, that's what an effective government does - they take in tax income and find ways to enrich the lives of the majority and do things that we cannot do on a smaller scale.
        • 5 Years Ago
        The Bush administration also hid the true cost of the drug benefit package from Congress, undercutting the cost by 25-50%. The man in charge of the program, Richard Foster, was specifically instructed by the White House (under threat of firing) to withhold the real cost of the program, $500-600 billion; instead he told them $400 billion, knowing full well that the figure was false.

        The same folks outraged over the spending on the Clunkers bill didn't give a damn then when Bush lied about the cost of a massive new entitlement program.
      • 5 Years Ago
      The government estimated that the original allocation would last until November, so at this point, who cares what they "estimate."
        • 5 Years Ago
        Oh no, the program was more successful than they predicted, the sky is falling!
      • 5 Years Ago
      Im usually not for government spending, but this is a good investment. it decreases demand for oil, stimulates local economies (dealerships and taxes), moves more cars off lots and gets cleaner cars out on the road. especially with detroit being a big benefactor of this we increase our odds of getting a return on our big investment.

      as far as the debt goes, the total loss on C4C investment is a drop in the bucket compared to our debt. so as far as big government programs go...this is pretty cheap.
      • 5 Years Ago
      Why couldn't they just make all cars over certain age eligible? Or would that make too much sense? While my 1991 is over the limit my 1 MPG, you could certainly trade in a nice fat 2000 SUV.
      • 5 Years Ago
      About killing the clunkers...
      My boy asked why the govt doesn't sell the old clunker wheels, airbags, engine parts instead of crushing them, ruining the engines.

      So after explaining the deal the the kid and after he becomes the next AJFoyt/JimHall, he's running for senate.

      This 7 yr old is looking for your vote. :)
        • 5 Years Ago
        Yes, but without the big ticket item (the engine), there's no point to salvage the remainder of the parts. Salvagers don't want the cars because they are not worth the money.

        Stop the disinformation yourself.
        • 5 Years Ago
        FALSE! The 'clunker' that's traded in can be salvaged for parts except for the engine and drivetrain. Be truthful to your son--Stop perpetuating the falsehood.
        • 5 Years Ago
        I dunno, if the junkyards have to take the cars anyway, why wouldn't they sell off what's actually useful? People don't just go to junkyards for engines. I see a lot of people picking non-engine parts: fenders, doors, bumpers etc are all useful in repairing crash damage. Lamps, seats, consoles, and other interior parts are commonly purchased too, either to replace worn-out items, or to upgrade to options that your car might not have come with.

        I've been picking through local junkyards for years and have never bought an engine, but I've purchased lots of other stuff. I'd bet that junkyards stand to make a lot off of an otherwise decent car that has a blown/wrecked engine.
      • 5 Years Ago
      So it goes on.
      • 5 Years Ago
      Yes, Your vehicle must be less than 25 years old on the trade-in date

      Jhenry
      Blogger
      www.cashforclunkersfacts.info
      http://www.cashforclunkersfacts.info
      • 5 Years Ago
      I wonder how many of the supporters of this program have ever heard of the Broken Window Fallacy. Evidently none.

      http://www.youtube.com/watch?v=UPmo2e-bAMQ
      • 5 Years Ago
      Aaaaaaand here comes another hundred more posts.
        • 5 Years Ago
        PSA: Clunkers traded in *can* be salvaged for parts (except for the engine and drivetrain).
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