Cash for Clunkers Extended

SEE ALSO: Cash for Clunkers Consumer Guide-Qualifying Vehicles

August 6, 2009 – The United States Senate voted today to extend the government's Car Allowance Rebate System (CARS), better known as Cash for Clunkers. The Senate joined the House of Representatives in approving an additional $2 billion in funding for the overwhelmingly successful program.

Dealers are free to continue to make transactions, and have the assurance of the Department of Transportation that all properly executed CARS deals will be honored within the $3 billion program limit. To guarantee that Cash for Clunkers runs smoothly, the National Highway Traffic and Safety Administration (NHTSA) has doubled its staff processing CARS transactions. In addition, NHTSA now allows dealers to submit CARS transactions prior to killing the trade-in vehicle's engine block.

The Senate approved the funds by a vote of 60 to 37. The $2 billion in additional funds, which is sourced from money already earmarked for stimulus spending, comes after overwhelming demand threatened to exhaust the original $1 billion. "This is a stimulus program that really works," said AIADA President Cody Lusk. "We applaud Congress for extending its life, and giving CARS a chance to continue to invigorate our economy and green our roads."

AIADA will continue to keep its members updated with Cash for Clunkers developments. Dealers can also check the government website for information at www.cars.gov/dealersupport.