If you’ve been watching the news, you may have been confused about what is happening with the Car Allowance Rebate System. What is the Cash for Clunkers program about? The program is designed to stimulate car purchases from participating dealers and remove gas guzzlers off the roads.

Has Cash for Clunkers been popular? Apparently so. While the bill has been planned to run until November 1, 2009 or until money runs out, the allotment has almost been spent!

Chrysler dealers have had their inventories reduced due to the program’s popularity. 

Cash for Clunkers Ran Out of Money

Last week, it was reported that the Car Allowance Rebate System, better known as Cash for Clunkers, was running out of the billion dollars allocated to it.

Double check to see if your clunker qualifies for the CARS program.

Wall Street Journal made this report Saturday:

Even Friday, officials weren’t able to calculate how much money remained in the clunkers’ kitty, other than to say that the National Highway Traffic Safety Administration, which handles the rebates, has processed $250 million in vouchers. 

Legislators are Trying to Continue to Fund Cash For Clunkers

I’m looking at the news today and I saw that the House has passed the additional funding and Senate is working on the bill this week.

 George Stephanopoulos, a politcal analyst, made the prediction that the  additional funding bill will pass. If you decide to make a purchase on a new car with the program, the cash for clunkers rebate will be honored through  August, 4. 

Is this Program for You?

We’re personally going to pass on the program for a couple of reasons. First off, we are saving up to buy a home soon so we would not like to divert funds from that goal.

I also looked up our vehicles to see if they qualify as clunkers and as expected, they do not. We have a 1994 Acura Intregra and a 200o VW Jetta and both get decent miles per gallon. 

If you ran the numbers for yourself and were already considering getting a car, then you should definately try to take advantage of the program. Just don’t buy a new car and end up getting a large car loan because of the program.

Your Take

Do you think this program is beneficial in the short or long run? Will you pass on the program or are you taking advantage of it?

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