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CAR REBATE PROGRAM MAJOR SUCCESS, WILL CONTINUE WITH NEW FUNDS

Washington, D.C. – Congressman Henry Cuellar (D-TX) today announced that Congress approved an additional $2 billion worth of stimulus funds to extend the successful “Cash for Clunkers” program which provides government rebates to consumers who trade in older vehicles for more fuel efficient cars.

“Less than a week ago, we kicked off Cash for Clunkers which was supposed to run until November. But in a matter of days, Americans went to their car dealers and cashed in on these rebates,” said Congressman Cuellar. “This is one of the most successful economic stimulus programs to date. This not only provides a boost to the struggling automobile industry, it helps Americans drive cars that get more miles on the gallon, and helps our economy recover faster. I’m pleased to vote for this funding and see Congress extend this program because it works.” 

The “Cash for Clunkers” program began on July 24 providing $1 billion in government rebates for consumers who traded in older less fuel-efficient vehicles for new vehicles getting at least 22 miles per gallon. The program was estimated to generate at least 250,000 new car sales, providing rebates from $3,500 to $4,500 to consumers.

“I want to assure all Texans that if you were planning to go to a dealership this weekend to take advantage of this program, as long as you qualify, your rebates will be honored,” said Congressman Cuellar. “By extending this program we’re not only helping consumers, and improving our environment, we’re giving a leg up to those car dealers who’ve watched their car sales decline due to the challenging economy. This program is a win-win for the consumer and the dealership.”

The Car Allowance Rebate System (CARS) is run by the National Highway Traffic Safety Administration, who reported Thursday that 22,782 vehicles worth $95.9 million had already been sold as a result of CARS. Consumers apply for the rebates when purchasing new vehicles at car dealerships, and the National Automobile Dealers Association reported concerns late this week that a wave of consumers had applied for almost all of the funds.

Today the House passed H.R. 3435, a vote making supplemental appropriations available for CARS by a vote of 316-109.  Pending passage in the Senate and the President’s signature next week, funds will be transferred from an existing Energy Department loan guarantee program to the “Cash for Clunkers” program.