July 31st, 2009
07:34 AM ET
5 years ago

Too many clunkers, too little cash

UPDATE Friday 10:30 a.m.: Michigan Sen. Stabenow tells CNN the Michigan, Ohio and Indiana congressional delegations are working on a $2 billion extension for the "cash for clunkers" program, which will come from reprogrammed stimulus money. She said there’s agreement in the House to do this today, but that the proposal's path in the Senate is unclear, and it could face hurdles there next week.

NEW YORK (CNNMoney.com) – This much seems certain about the Cash for Clunkers program: Consumers are happy to take government rebates to buy new cars.

The fate of the $1 billion trade-in program was up in the air over concerns that it may have already burned through its funds less than a week after it was officially launched.

It was unclear whether car buyers would be able Friday to trade in clunkers.

Congressional sources said early Thursday evening that the program would be put on hold. But Obama administration officials said later that Clunkers had not been suspended and that they were studying the situation.

"Auto dealers and consumers should have confidence that all valid ... transactions that have taken place to date will be honored," a White House official said in a statement.

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