The cash for clunkers program financing issues

This legislation was designed as an economic stimulus with the intent of helping both consumers and auto manufacturers and at the same time increasing the mileage of the US consumer vehicle fleet..   It was part of a series of rapidly passed economic crisis legislation in the wake of significant economic uncertainties in 2009, by the United States government.

The cash for clunkers program was anticipated to run for six months, but due to the extraordinary rebates this legislation enabled, funding quickly ran out.  In the midst of greater financial information and the government takeover of large automakers,  it was suspended as a result of lack of additional financing.  Money was moved to a similar program for appliances, although in far greater quantities.  

While cash for clunkers appears to be a thing of the past, there are valid questions about auto dealers who engaged in the program will actually be able to collect the promised funds in a time frame that allows continued operations.    While discovery of the amount of debt that has been racked up by government and corporate financial concerns is ongoing, and legislation on health care reform, (which may have very high initial setup costs) congress has been reluctant to continue funding the program.   

Legislation that is similar although on a smaller scale is reported to be under consideration, but when that legislation will be up for review and possible passage into law is unknown.

Cash for Clunkers Program

government rebate for cars