The popular 'Cash for Clunkers' program—a government-run incentive that pays people to trade-in their gas-guzzling vehicles for more fuel-efficient models—has received an official stay of execution, albeit a short one.
The Hill is reporting that the Department of Transportation will extend the Cash for Clunkers program, originally set to expire Monday afternoon, another 16 hours. While the deadline for actually completing sales remains 8:00 p.m. today, the deadline for automobile dealers to file applications for rebates has been extended until noon tomorrow (Tuesday).
Despite a large increase in the system’s capacity, the program's CARS website crashed this afternoon, leaving thousands of transactions hanging in the balance. The extension will please both customers and dealers who were trying to squeeze-in last minute rebates, only to find the website unable to keep up with demand.
Because of the temporary shutdown, dealers have been given extra time to file the necessary paperwork. The move came after the National Automobile Dealers Association, best-known for their 'Blue Book' values, pressed the government for an extension.
"Dealers across America risk millions of dollars in losses if they are unable to submit valid 'clunkers' transactions because the government’s computer system is unavailable," NADA officials said in a statement.
Despite the popularity of the program, some have charged that it is hardly the most cost-effective route to slash carbon emissions, reduce fuel consumption, or stimulate the economy. But the fact that it did a little of each of those should be considered a good thing and hopefully something we can learn from.
Image via ThreadedThoughts
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Cash for clunkers was a quick bold initiative to help stimulate the economy and help the environment with scrapping more cars that are on America’s road and getting more fuel efficient ones on instead. The cash for clunkers scheme has helped America with its oil stockpile as with more fuel efficient cars, less gas is being wasted in engines by old less efficient cars that guzzle gas that made people go to the pumps more. The scheme has also helped people save money on their auto insurance as more auto insurance companies are offering cheaper quotes for newer, better fuel efficient cars.