WASHINGTON -- The Senate reached a deal on saving the dwindling "cash for clunkers" program late Wednesday, agreeing to vote on a plan that would add $2 billion to the popular rebate program and give car shoppers until September to trade in their gas-guzzlers for a new ride.
The program offers car buyers rebates of between $3,500 and $4,500 for trading in their gas-guzzlers for new, higher-mileage models.
Following lengthy negotiations, Senate Majority Leader Harry Reid said Democrats and Republicans had agreed to vote on the plan Thursday, along with a series of potential changes to the bill, which was passed by the House last week. Reid has said Democrats have enough votes to approve the measure and reject any changes that would cause an interruption in the rebates.
Reid said the agreement "accomplishes what we need to accomplish."
Late Wednesday, it was not clear that any of the proposed amendments stood a chance of passing. Some of them included placing an income limit on those benefiting from the vouchers and requiring the government to sell off its stakes in General Motors Co. and Chrysler Group LLC.
The government said Wednesday that more than $775 million of the $1 billion fund had been spent, accounting for nearly 185,000 new vehicles sold. President Obama has said the program would go broke by Friday if not replenished by Congress.
The new funding would triple the cost of $1 billion rebate program and give as many as a half-million more Americans the chance to grab the new car incentives through September.
Car companies have credited the clunkers program with driving up sales in late July. Most consumers are buying smaller, more fuel-efficient vehicles under the program, according to a list of the top-10 selling cars released Wednesday by the National Highway Traffic Safety Administration.
Among manufacturers, General Motors Co. had the largest share, accounting for 18.7 percent of new sales, followed by Toyota Motor Corp. with 17.9 percent. Ford Motor Co. was third with 16 percent of the sales. Detroit automakers represented 45.3 percent of the total sales while Japan's Toyota, Honda Motor Co. and Nissan Motor Co. accounted for 36.5 percent.
The Toyota Corolla is the top-selling vehicle on the list, followed by the Ford Focus, Honda Civic, Toyota Prius and the Toyota Camry. There is one SUV on the list, the Ford Escape, which also comes in a hybrid model. Six of the top-10 selling vehicles are built by foreign manufacturers, but most are built in North America.
Senate passage would send the legislation to the White House for Obama's signature and assure consumers there will be no interruption in the program that has led to packed car dealerships nationwide.
The deals are aimed at boosting auto sales, which have been at their lowest levels in two decades.
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What do you think about the "Cash for Clunkers" program?
Do you believe that this program is corporate welfare or welfare for wealthy and middle class citizens, as some do?
I think we need to stop printing money to fund these pet projects. If you were driving a clunker before with a value less than $4500, why can you now afford a brand new vehicle? I'm sure I don't understand...It's nice to know that Toyota got a boosts in sales - I mean GM & Chrysler owe the American Tax Payers - so we should definately define this program by eliminating most American made cars! Yeah, I'm thinking thumbs up! NOT!
HMMM, so let's see. They ran out of 1B within a week, so 2B may last 2 weeks. Yep, good plan....not.
I can't afford to buy a new car, but I'm paying for someone else to.
Gonna be selfish here and say that I all for it. I wish i was going to be able to trade in my truck. I still owe $5000 on it and would probably only get 3000 trade in value. Taking advantage of the program would get my loan paid off and still have some left over. But, since we aren't technically living in the states right now and I sill have sttuff that I will have to haul from Florida to Cali in December, not really an option. I have really been wanting to get a car, especially a hybrid or something and get rid of this big ass silverado. BTW, not that I would get one, but apparently Chevy has come out with a silverado hybrid. It probably gets the gas milieage or a V6 car though.
Heather
Proud Pagan Momma
"Fighting for Peace is like screwing for virginity."
He is backrupting the US! I can not believe this, there was better options on how to spend money and he does this. I understand that we need to be greener, but not at my expense. I drive a BIG ASS truck and I love it. I pay the gas cause I can afford it and that's what I want. I will never NEVER drive another car, and I will pay any tax I have to to keep my trucks. He will never get the farmers and good ol' southern boys and girls to drive cheap ass, any worth my money, killed in a wreak hybrid car!
Dont even get me started on the other dumb shit he has done. I'm not blaming all the US's problems on him, but he is definately NOT fixing them!!!!
He has no concept of the "There is no money" situation we are in....we can just keep adding and adding for stupid programs....mean while, schools are out of money, they're cutting teachers and funding left and right his priorities are completely screwed up...
Actually the 1st billion came out of the stimulus package. And btw, its not about just being green, its also supposedly about getting people out there to buy cars, thus stimulating the economy. Right now, according to what I was listening to on the radio a few minutes ago, the house dems don't want the next 2bil to come out of the stimulus package because it will most likely come from the amount set aside for renewable energy programs like the 1st bil did. They don't want to take away from that. House repubs. want it to come out the stimulus package. I actually think I agree that it should come out of the stimulus package. I am sure there are other areas that the money can come from besides the renewable energy programs. BTW, hybrids are not cheap, they're pretty expensive. the cheapest one on the market is more expensive than most trucks. And for your good ole southern boys and girls, there is now a chevy silverado hybrid and I can attest to the durability of a hybrid since I've put mine through quite a few tests. There are also hybrid tahoes and other suvs. BTW, I think the tahoe hybrids have a towing capacity of upto 6000lbs.
Quoting Kalliemommy:He is backrupting the US! I can not believe this, there was better options on how to spend money and he does this. I understand that we need to be greener, but not at my expense. I drive a BIG ASS truck and I love it. I pay the gas cause I can afford it and that's what I want. I will never NEVER drive another car, and I will pay any tax I have to to keep my trucks. He will never get the farmers and good ol' southern boys and girls to drive cheap ass, any worth my money, killed in a wreak hybrid car!
Dont even get me started on the other dumb shit he has done. I'm not blaming all the US's problems on him, but he is definately NOT fixing them!!!!
Heather
Proud Pagan Momma
"Fighting for Peace is like screwing for virginity."
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- Cafe GroupAdmin
on Aug. 6, 2009 at 2:56 AM