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Clash For Clunkers Runs Out of Cash

7/31/2009 8:21:00 AM

The Federal Cash for Clunkers program also known as CARS ran out of money on Thursday, only a mere four days after starting up. The program which provided Federal vouchers worth between $3,500-4,500 was created to take older low mpg vehicles off of the road and replace them with more fuel efficient vehicles.

The program was modelled after similar programs in both Germany and the United Kingdom. Those countries own Cash for clunkers programs have been resounding successes. The American program has also proved to be a hugely popular and successful program based on the quick exhaustion of available funds.

The news of the programs exhaustion of available funds has been met with a tepid response from the White House, where a spokesman could only say that they will look into the program to determine if it has run out of money. The numbers of vehicles traded in totals well over 250,000, with possibly more that were still to be turned in had the program not been suspended.

In a statement by goverment officials, the deals that are valid will be honored. What that means exactly is unknown, since there was no statement made as to whether additional funds would be allocated to the program to continue it's operation is unknown.

What is clear is that the program was a resounding success and should have additional funds allocated to it and it should be expanded.

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