Cash for Clunkers a Success

Statement

When the House of Representatives originally passed the Cash for Clunkers bill, which allows car buyers to trade in their older vehicle for a new, more fuel efficient one and receive a voucher, we knew it would be a success, but no one could have predicted the runaway hit it has truly been.

After the program officially started on July 27, dealers reported that their sales have been higher than they've been in a long time, and that cars are flying off the lots. The biggest problems the program has had are administrative, as so much interest in the program has caused computer backlogs. What a great problem to have - too many buyers in the auto showrooms!

Just after the program started, after speaking to many auto dealers, it became clear that the program would not last until its intended November 1 deadline. The $1 billion was running out quickly, so I sent a letter to Speaker Pelosi and the rest of the House leadership asking for an extension of Cash for Clunkers. Two days later, the Transportation Department confirmed that the program was running low on cash. So on Friday, the House of Representatives did the right thing and voted to extend the program, infusing it with an extra $2 billion so that more Americans can buy cars, and more dealers can sell them. Now we wait on the Senate to do the same, and in the meantime the Administration has made assurances that the program will keep running.

There can be no doubt that the Cash for Clunkers program is a complete success given the fact that the entire $1 billion allocated to the program was expended in less than a week. This is simply the most stimulative $1 billion the federal government has spent during the entire economic downturn.

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