"If we don't get the $2 billion from the Senate ... we would have to suspend the program next week. We will continue the program until we see what the Senate does, and I believe the Senate will pass this," LaHood said in a C-SPAN interview, quoted by Autonews. According to the official, the US will honor dealer rebate applications submitted at least until Tuesday, August 4.
"Any deal that is made Monday or the next day and that is in the pipeline, ... the dealer will be reimbursed and the car buyer will be reimbursed," he added.
The Transportation Secretary did not mention however where will the administration get the money from to support CARS. This made the National Automobile Dealers Association (NADA) react cautiously and recommended dealers to do the same.
"I take the secretary at his word, but we still urge dealers to use caution when doing cash-for-clunkers transactions," NADA spokesman Bailey Wood told the source.
Criticism to CARS and the speed at which it consumes government and taxpayers' money has not failed to surface. According to Senator Jeff Bingaman, D-N.M, it is worrying how the Obama administration shifted the extra $2 billion from a renewable energy loan program to fund CARS.
"My children and grandchildren are going to have to pay for these cars, and we're helping auto dealers while there are thousands of other small businesses that aren't getting the help," Senator. Jim DeMint, R-S.C. was quoted as saying by AP.
"This is crazy to try to rush this thing through again while they're trying to rush through health care, and they want to get on to cap and trade electricity tax," he added.
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