A staggering 450,000 clunkers have been traded in for new, fuel-efficient vehicles. While that’s great news for buyers, sellers and manufacturers alike, no one expected the CARS program to be so popular or so effective. After receiving an additional $2 billion in funding — upping the grand total to $3 billion — Cash for Clunkers is already tapped out. That means if you’re still holding onto a clunker, you have until 8 p.m. Monday, August 24 to trade it in for up to $4,500 toward a new, efficient vehicle.
Early estimates put the program lasting until as late as November 1, but the staggering popularity of CARS has lead to a shortage of funds. Some analysts are predicting there may not be enough money to last throughout the weekend – a claim the federal government denies, saying it has done the calculations to make sure every dealer gets paid for the vouchers it distributes.
Now the only question is whether or not the increased sales every manufacturer has seen will continue once the program ends on Monday. Many car makers, including Ford and General Motors, have upped production to keep up with demand, and now that the Cash for Clunkers program is ending, there’s some worry sales will slump off once again.
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