August 8th, 2009
03:37 PM ET
5 years ago

Analysts predict billions in benefits from 'Cash for Clunkers'

WASHINGTON (CNN) – The "Cash for Clunkers" program will continue with a $2 billion supplement that some analysts say could provide a boost of billions of dollars more as it reverberates through the economy.

Critics, however, say the program merely shifts consumer spending from one area to another.

President Barack Obama on Friday morning signed the bill extending the program.

The program provides consumers a cash rebate of up to $4,500 when they turn in older, gas-guzzling vehicles and buy newer, more fuel-efficient ones.

Congress passed the $2 billion expansion after reports that the original $1 billion earmarked for the program would soon run out. According to some estimates, the total of $3 billion in the Cash for Clunkers program could result in an $18 billion boost to the overall economy.

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Filed under: Cash for Clunkers
soundoff (44 Responses)
  1. W.MORING

    Thank you for not printing any of my submissions. Can I guess why???????

    August 8, 2009 06:00 pm at 6:00 pm |
  2. Maria - Proud Democrat

    The Cash for Clunkers program needs to be revamped so that it allows the POOR and more of the middle class participate......the only people benefiting from this are the RICH and the upper middle class.

    The people that really need to take advantage of this program are being blocked out.

    When is this administration and Congress going to focus on the POOR!

    August 8, 2009 06:12 pm at 6:12 pm |
  3. 4 and the door

    This is just another Democratic program throwing money at people instead of actually managing the economy.

    Another blatant example of the Obama administration along with Pelosi and Reid being irresponsible with our tax dollars.

    August 8, 2009 06:14 pm at 6:14 pm |
  4. ib

    Where is this sign of recovery people?? I sure don't see it; I see more lay offs announced everyday not people being employed. I guess just because Obama says it that makes it law. One more thing; I see another gov. bailout coming– people buying cars on this program–some can't afford new cars without it– this allows them to qualify for a loan that they couldn't otherwise get. I guess we'll be bailing them out when they can't make the payments on the car loan.

    August 8, 2009 06:27 pm at 6:27 pm |
  5. Isa

    The purpose of this program is to stimulate the economy. The program is achieving this purpose. And if Fan of Common Sense is correct, then we will have more money circulating when these folks trade it in or sell their econo model for another gas guzzler. President Obama's main concern has to be to get this economy moving forward. After the inheritance that Bush left, I am amazed that he has done so much in 200 days. I may not agree with all that he is doing but I also realize he is doing the best job I have seen in many years.
    As to the environment, the program may just raise awareness and people may just feel good about spending less at the pump. That is the way I feel. I am glad I invested in a Prius. On good days I get 48 miles to a gallon and 42 on a bad day. I will take that any day in comparison to my friends' 20-28 mpg.

    August 8, 2009 06:32 pm at 6:32 pm |
  6. payback

    .......DUH, If this idea is so BAD. Why so popular?.....Wanna, know why so much hate? Because republicans, didn't think of it.....They want President Obama to fail.....

    August 8, 2009 06:32 pm at 6:32 pm |
  7. Jim

    When are people going to realize there is no money for this program or any other new proram for that matter. Its all debt that will have to be paid for and when that bill comes due.

    August 8, 2009 06:35 pm at 6:35 pm |
  8. mike

    And on the border states, illegals are bringing in their clunkers for cash and heading back to Mexico.
    Change you can believe in.

    August 8, 2009 06:48 pm at 6:48 pm |
  9. Chery Tx

    @alvino August 8th, 2009 4:48 pm ET
    I think we should find out what McCain and Boehner think, and then do the opposite. That will ensure success.***LOL .....That is a good response!!!!

    August 8, 2009 07:01 pm at 7:01 pm |
  10. Indecision, Indecision

    You folks just can't make up your minds: if it didn't work everyone would be critical of Obama. Now that it's a success opponents are now concerned about the long term. Give me a break.....can we be happy without all the skepticism. The only thing I'm disappointed about is I don't qualify for the program otherwise I would be at the dealer right now. But I hope others are taking advantage of this opportunity and just may be some jobs come out of this. So, cheer up; turn that frown to a smile. CASH FOR CLUNKERS IS HELPING.

    August 8, 2009 07:28 pm at 7:28 pm |
  11. jammyp

    What is jennifer talking about.??? "destroying small business". I have a friend in the used car lot business and the CARS is not destroying it. This is getting people who wanted to buy a new car an incentive. They do not want your used car or they would have bought it before!!! No one was buying cars before this - didn't you hear that even Toyota was losing $. This is a great program with potential and immediate results. Whether Republican or Democrats came up with this I would have the same comment - it is getting folks to spend again - it helps the economy. Get politics out of this folks. Money is nether Democrat or Republican.

    August 8, 2009 07:39 pm at 7:39 pm |
  12. Chris

    The cash for clunkers opposition by the Republicans is just another example of them being against whatever President Obama is for. They claim it is favoring the car industry over other industries. What the right neglects to mention is all the millions of people who's job depends on the car industry. Think of all the workers at car parts manufacturers who will benefit from there being greater demand.

    August 8, 2009 07:46 pm at 7:46 pm |
  13. inuk of the north

    Think about it.

    Taxpayers subsidizing new cars for people who can afford to buy them.

    That's what our tallest foreheads can come up with?

    August 8, 2009 08:14 pm at 8:14 pm |
  14. Clunker happy girls and boys

    Thank you Obama, we just traded our clunker for a new truck and are so pleased and happy to have a small hand in making the economy work for us, industry, and the green earth. What a win win for everyone.

    August 8, 2009 08:21 pm at 8:21 pm |
  15. Tatianna

    Remember Fannie and Freddie, the two so-called Govt Sponsored Enterprises, that lay behing the housing meltdown? Lets HOPE cash for clunkers didnt lure people into buying cars they cant afford.

    August 8, 2009 08:27 pm at 8:27 pm |
  16. Mark,B'ham,Al.

    Everyone of you who like these giveaways should be the ones whose taxes are raised to pay for the giveaways. Next thing you know we will have cash for condoms to promote the porn business.

    August 8, 2009 08:29 pm at 8:29 pm |
  17. scott painter

    This was such a great idea and such good implementation. I only wonder if it couldn't be made better, by offering the clubjers for sale in other countries with worse clinkers.

    August 8, 2009 08:33 pm at 8:33 pm |
  18. nathan smith ga

    Obama sure got this one right just as he got the stimulus right and cap and trade right and he is also right on health care with a public option. He is doing a great job. My prayers are with him, God bless the UNITED States of America!

    August 9, 2009 01:39 am at 1:39 am |
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