Cash for Clunkers Suspended Indefinitely: $1 billion Already Gone

Bloomberg are reporting that the U.S. government have suspended the Cash for Clunkers 2009 Program indefinitely, saying that the $1 billion that was put aside has already gone. The Car Allowance Rebate System (CARS) was started to help jump-start poor car sales and it seems to have been a huge success.

Senator Debbie Stabenow said that it was amazing at just how popular Cash For Clunkers turned out to be, she has now urged congress to make more funds available to renew Cash For Clunkers once again. There had been doubt from the start that CARS would not work, but this is proof that all those fears were unjust.

The U.S. government had assumed that the incentive would help generate 250,000 car sales and last through to November, more than 200,000 greener cars are now on the road thanks to Cash For Clunkers and the ailing auto industry has been given a much-needed boost by this.

New York Democrat, Senator Charles Schumer has said that the Cash For Clunkers turned out to be too successful, but added that the program should continue. Schumer did add that the program might have to have a little tune-up if the Government wishes for the incentive to be more long-term.