Cash For Clunkers

We’ve talked about the cash for clunkers before, but it seems that since the auto makers and dealerships have started advertising the program as their own, it’s really been picking up steam. The house and Obama’s administration have finally come to a decision on how the plan will exactly work, and the auto makers and taking it and running.

Since the recession, car dealerships have been losing ground dramatically. Car sales are currently at the lowest they’ve been in 30 years, and the dealerships are looking for anything to help them pick up the pace again.

The program provides vouchers ranging from $3,500 to $4,500 as an incentive for consumers to turn in older vehicles to buy more fuel-efficient cars. It runs through Nov. 1 or when the $1 billion that Congress allotted runs out, according to the Detroit Free Press.

If your car gets less than 18 miles to the gallon, and is less than 25 years old, you could qualify for the voucher when purchasing your new and more efficient vehicle. The government is expecting a sharp increase in car sales due to this Cash for Clunkers program. Before November 1st, or the money runs out, their foreseeing 250,000 auto sales, spurring an industry that is down 35%.

While most are happy to get rid of their gas-guzzlers through the Cash for Clunkers program, many are concerned about the trashed parts that could be used to fix older cars. According to Newsday, more auto parts supply chains are filing bankruptcy every day, which leaves people wondering where they’re going to get their replacement parts if thousands of older cars are about to be destroyed.

Cash for Clunkers officially began on Friday.

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