WASHINGTON — Car shoppers caught up in the frenzy of the "cash-for-clunkers" program now have more time and a $2 billion reason to trade in their old gas guzzlers.
President Obama signed into law Friday a measure tripling the budget of the $1 billion incentive program that has drawn big crowds to formerly deserted showrooms. The Senate on Thursday passed the legislation extending the 2-week-old program into Labor Day and preventing it from running out of money.
"Now more American consumers will have the chance to purchase newer, more fuel-efficient cars, and the American economy will continue to get a much-needed boost," Obama said in a statement hailing the vote.
The extra money, approved by the House last week, is aimed at helping automakers and spurring the economy while removing some of the least fuel-efficient vehicles from the road. Last week, the government said the program's funding would be exhausted by Friday if it was not replenished.
People are also reading…
Through Friday, the most recent data available, $1.03 billion had been spent on the program, accounting for the sale of 245,384 new vehicles.
Administration officials estimate the new money will last into Labor Day and could prompt an additional 500,000 vehicle sales.
Dealers said the additional money would help them maintain a sales pace they haven't seen in months and continue to benefit from heavy publicity surrounding the rebates.
"People are still coming in," said John Rogin, who runs a Buick dealership in Livonia, Mich. "It's like everyone out there has been given the green flag."
On the net
Car Allowance Rebate System: www.cars.gov
