Cash for Clunkers gets more money from Congress - NBC12 - WWBT - Richmond, VA News On Your Side

Cash for Clunkers gets more money from Congress

By Sunni Blevins - bio | email
Posted by Phil Riggan - email

RICHMOND, VA (WWBT) - Car dealers and buyers are revved up this morning -- excited to hear that congress is pumping $2 billion more into the popular Cash for Clunkers program.

This means there's still time if you want to trade in your gas guzzler for a new set of wheels.

The vote came in late last night, and this really is just great news for anyone trying to unload their gas guzzler because you can get up to $4,500 for trading it in.

Just last week, many people were upset to hear the program was running out of funds, but those people can feel relief this morning.

Lawmakers made sure to keep the popular program alive before heading home for a month long vacation.

The House of Representatives approved the measure last week, but it wasn't until late last night that the Senate decided to go along with the plan to pump $2 billion more into the program.

In 10 days, the program has instantly increased sales for an auto industry that was suffering big time in the midst of this recession.

Obama administration officials have said that without these new funds, the program would have expired today.

Even though the ultimate vote added money to Cash for Clunkers -- not everyone was in agreement.

Senator Dick Durbin says: "This program is helping to put life back in our economy, helping to save and create jobs and really getting out automotive sector moving forward again."

Senator John McCain says: "We're spending three billion dollars to subsidize car purchases, some from auto companies we own."

Here's a few reminders about the Cash for Clunkers program.

To be eligible, your car must get gas mileage of 18 miles per gallon or less.

It must be less than 25 years old and it must be drivable -- and have been owned and insured continuously for at least one year.

And there's certainly evidence car manufactors are benefitting from this program. A Hyundai plant in Alabama added a day of production, and Ford is considering a production increase.

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