Hagan Supports Extending "Cash For Clunkers"

Press Release

Hagan Supports Extending "Cash For Clunkers"

U.S. Senator Kay R. Hagan (D-NC) made the following statement in support of extended funding for the "Cash for Clunkers" program. The proposed $2 billion will come from money already appropriated in the American Recovery and Reinvestment Act, and will not further increase the deficit. The Senate may vote this week to extend the program.

"In this economy, we need to be taking pragmatic steps to save and create jobs," Hagan said. "This incentive from the government has spurred demand in energy-efficient vehicles and created needed business at car dealerships that have been suffering in this economy. The Senate needs to act quickly to ensure that people continue purchasing energy-efficient vehicles - a welcome boost to our economy."

The Car Allowance Rebate System, or "Cash for Clunkers," was passed by Congress earlier this year. The $1 billion originally allocated has been depleted more quickly than was anticipated as consumers have traded in their vehicles for more energy-efficient models. The additional $2 billion for "Cash for Clunkers" will be transferred from a $6 billion energy efficiency account created by the passage of the Recovery Act. The House has already voted to extend the program.

In April, Hagan joined 22 Senate colleagues to write a letter urging President Obama to increase the availability of affordable credit for the country's automobile dealers. In response, the Small Business Administration initiated a pilot Dealer Floor Plan Financing Program that provides a federal guarantee for private loans to auto dealers nationally. Dealers are able to repay these loans as their inventory is sold and can borrow against the line of credit to add new inventory. Automobile dealerships employ over 32,000 individuals in North Carolina with a total annual payroll of $1.51 billion.

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