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Cash for Clunkers Gets Its Tank Refilled

July 31, 2009

The House of Representatives has approved another $2 billion for the “cash for clunkers” program as it unexpectedly came close to running on empty after just a week in service.

The program aims to juice dormant automobile sales by offering credits of $3,500 to $4,500 toward the purchase or lease of a new fuel-efficent car when consumers trade in their old one. The program was a victim of its own success and apparently used up much of its $1 billion in government funds in less than a week.

The program revealed either pent-up demand for automobile purchases or just for a good bargain. The Senate is likely to follow the House in gassing up the program, but the car czar apparently will have to do a better job of budgeting next time around.

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