Cash for Clunkers

An estimated 200,000 plus cars have been sold as part of the “Cash for Clunkers” program. But, as CBS Jeff Glor reports, dealers aren’t so sure their business is benefiting.

The Car Allowance Rebate System (CARS), colloquially known as “cash for clunkers,” is a U.S. federal program intended to help U.S. citizens purchase a new, more fuel efficient vehicle when trading in a less fuel efficient vehicle. Although the program officially started on July 1, 2009, the processing of claims did not begin until July 24.

The $1 billion appropriated for the system was exhausted by July 30, 2009, well before the anticipated end date of November 1, 2009, due to very high demand. In response, Congress is seeking an additional $2 billion for the program with the explicit help of the Obama Administration. On July 31, 2009 the U.S. House of Representatives approved the extra $2 billion to the program and the U.S. Senate is due to vote the following week.