$2 Extra Billion for Cash for Clunkers

The White House administration has decided to inject an extra $2 billion in the Cash for Clunkers nationwide scheme after dealerships across the country raised concerns that the initial funding package could run out before the weekend. The CARS, (Car Allowance Rebate System) which was officially started on Monday created quite a stir in the United States where consumers bought thousands of cars even from the first days of its introduction.

As a result, dealerships participating to the program expressed their concern that government’s cash could run out, which basically means they would be forced to cover the costs of consumer vouchers that would remain uncovered by the government.

But the US is ready to add $2 billion to the scheme so that the program could continue.

"Dealers can feel confident heading into the weekend with a strong bipartisan vote in the House for additional money to ensure the continuation of the program," White House Press Secretary Robert Gibbs was quoted as saying on Friday by The Detroit News.

The bill is now waiting to pass the Senate and go further for Barack Obama’s signature.

"I urge the Senate to act with the American consumers in mind to pass this important legislation,” Obama said demanding the Senate to act faster on approving the extra funds.

US officials assure dealers that the existing funds would be enough to get through the weekend but still, the National Automotive Dealers Association (NADA) said dealerships are still worried they might not be reimbursed.

"Until further definitive guidance on the availability of funding is provided by the administration, dealers who accept additional 'Clunkers' deals may face a risk that they will not be reimbursed," said John McEleney, chairman of the NADA. "NADA will continue to work with NHTSA to emphasize the importance that every dealer is reimbursed for a valid deal."

The official CARS website has already been updated with new information. Under the “CARS Back on the Road” title, the webpage says that “the CAR Allowance Rebate System (CARS) is still operating. Consumers can still take advantage of the government program and receive a $3,500 or $4,500 discount for their trade-in vehicle when purchasing or leasing a new vehicle.”