Despite a $2 billion emergency infusion shortly after the $3 billion total initiative began, the United States government’s Cash for Clunkers program will end August 24 to help potential shoppers avoid claiming more than the program offers.
The program was initially designed to sell about 250,000 vehicles by November, but in just under a month it will have sold more than 700,000 new cars. The program will come to a screeching halt on Monday at 8 pm Eastern to allow for sales to wrap up this weekend.
Cash For Clunkers has been celebrated by dealers, automakers and politicians for doing exactly what it was intended to do: Drive new car sales while taking less-efficient, older cars off of the road.
“This program has been a lifeline to the automobile industry, jump starting a major sector of the economy and putting people back to work,†U.S. Transportation Secretary Ray LaHood said. “At the same time, we’ve been able to take old, polluting cars off the road and help consumers purchase fuel efficient vehicles.â€
However, numerous groups, from enthusiasts to charities to environmentalists, have complained that the program used excessive federal funding to destroy serviceable vehicles and encourage buyers to finance new cars out of their price range.
