"Clunkers" Cash Going Fast

By: Stephen Smith
Topics: Automakers

(AP)

More than 10 percent of the money allocated to the government's "Cash for Clunkers" program has already been doled out, according to the Detroit News.

As of Wednesday, $96 million in vouchers had been submitted for reimbursement, the National Highway Traffic Safety Administration said.

U.S. Rep. Candice Miller said that the program's coffers could run dry in "a matter of weeks."

The program is apparently accelerating despite criticism that many drivers with fuel-inefficient cars don't qualify under the strict guidelines.

The stringent requirements have led to confusion and frustration for dealers and customers, leading some critics to question how a program seemingly so well-intentioned got so far off track, CBS News correspondent Jeff Glor reported last week.

Cars and trucks must be 1984 models or newer to be eligible for a trade-in rebate. They must get 18 miles per gallon or less in combined highway/city rating - based on the "Estimated New EPA MPG" ratings available at www.fueleconomy.gov.

So a 1993 Mercury Grand Marquis - a boat of a roadster with a big V-8 engine - would not qualify, because its original, official miles per gallon was 19.

Stephen Smith
Stephen Smith is a senior editor for CBSNews.com

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by jhenry1008 August 10, 2009 7:21 AM EDT: Yes, Your vehicle must be less than 25 years old on the trade-in date

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by sjc_1 August 1, 2009 10:15 AM EDT: My initial thought was that most people that drive "clunkers" do so because they can not afford a new car. That bit of simple logic did not enter into any of this. Germany had this program, but a lot of their working people have higher paying union jobs and can afford a new car. After decades of union bashing here many work at Wal-Mart and Dominos now.; Reply to this comment


by ozzyfied July 31, 2009 2:12 AM EDT: What stinks is that my parents that have a clunker cannot qualify because their car is 30 yrs old. I don't know where they came up with the 25 yr old car restriction. Why??
My parents really need a new car, are willing to pay cash for the rest of it after the rebate (they are older and do not want a car payment), and cannot get a new car. If anything, their car should REALLY qualify Is there any real rational reason for the cut off?; Reply to this comment


by fedup12 July 30, 2009 1:30 PM EDT: Cmon this is a part of the stimulus that is actually getting the money where it needs to be.

1. It will get some old gas guzzler off the road.
2. It will help some people get a newer more fuel efficient car
3. helps the car companies and their employees who have been struggling.

I think it is about the best stimulus program there is out there. I cant use it but if I had a clunker I would! In my opinion this is probably stimulating the economy more than the Bush Tarp money did.; Reply to this comment


by mac21785 July 30, 2009 1:29 PM EDT: Any car that gets 18mpg is a very expensive car. SUV's, Trucks, fancy cars. It sucks for us people who can't afford a whole lot. Once again this is for the upper class! People with $$$!! Not the mid or lower class!! My car IS a clunker and does not qualify.; Reply to this comment

by beaumuff July 30, 2009 12:48 PM EDT

Looks like this well thought out plan is working about as well as the stimulis. What a joke. The tax payer is shelling out $4500 for somebody to get a new car. Come on Obama, pull your head, not everything in life is free like you have had it.

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by scorpio619 July 30, 2009 5:06 PM EDT: I would just like to say in response to have-a-day, for this program, you MUST have owned the vehicle for at least the 12 months prior, with continous registration and unlasped insurance. There are PLENTY of restrictions on this program, and I have heard that you must be able to start the vehicle. Also, the new vehicle must not have an MSRP of more that like $45,000.


by fedupredneck July 30, 2009 11:39 AM EDT: John I agree with ya on this one. I also don't want a car payment,or a GPS tracking unit in my car. I believe most new cars come with them. It's bad enough "Big Brother" can track my cell phone.; Reply to this comment


by John_Merritt July 30, 2009 11:33 AM EDT: I will keep my old clunker that uses more gas than it probably should because I will not take less for more. I am happy because it suits all of my driving needs and the cash received its miniscule compared to any benefits and long term risks.

Sign me: Thanks, but no thanks.; Reply to this comment