Cash for Clunkers
Need a new car? See 8 things you should know about the 'Cash for Clunkers' program.
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Automakers' Dream - The federal government's "cash-for-clunkers" program, which turned out to be more successful than automakers dreamed it would be, will likely boost July's auto sales to the highest level of the year when figures are announced Monday.
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How It Works - When Congress approved the clunkers program early in July, it allocated $1 billion for the Car Allowance Rebate System, or CARS. Under the program, owners of old cars and trucks that get less than 18 miles per gallon in fuel efficiency are offered $3,500 or $4,500 toward a new, more fuel-efficient vehicle, in exchange for scrapping their old vehicle.
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Program Gets Boost - But the $1 billion was used up in the first few days after the program's regulations were finalized, and the government even considered suspending it as the money neared depletion. Yet the program continued and the House voted Friday to allocate another $2 billion to keep the sales going.
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More Cash OK'd - Senate Majority Leader Harry Reid says the Senate will vote to replenish the popular "cash-for-clunkers program" before leaving on a monthlong vacation later this week. Reid spoke at the same time as Republican Sen. Jim DeMint of South Carolina told reporters he does not intend to try and block passage of the bill. The popular program is on track to run out of money without action by Congress.
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Ford Benefits - Thanks to the program, Ford, in July, posted it's first U.S. sales increase in nearly two years. Automakers such as Hyundai and Subaru turned in stronger performances, while Toyota Motor Co., whose sales have taken a beating in the downturn, posted a slower sales decline of 11 percent.
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