Monday Is Last Day New
Applications Are Accepted
By Harold Egeln
Brooklyn Daily Eagle
BROOKLYN – The government is putting the brakes on the popular “Cash for Clunkers” program with its deadline Monday evening for new applications, and President Barack Obama has declared the program a success.
In Brooklyn, boosting the $3 billion auto stimulus plan (officially called the Car Allowance Rebate System or CARS), were Democratic Congressmen Michael McMahon and Congressman Anthony Weiner.
For the past month, TV auto commercials constantly promoted the program that drove car owners to trade in their clunkers, get a hefty wad of cash thanks to the U.S. government and a good deal on a new fuel-efficient car.
The program produced nearly 460,000 auto sales since it began a month ago, according to the U.S. Department of Transportation. The program has now run out of money, two months short of its original deadline of Nov. 1.
Drivers trading in their old fuel-inefficient vehicles reaped a $3,500 to $4,500 bounty, touted as helping to stimulate the economy, the depressed auto industry and energy savings. The two Brooklyn congressmen hailed the program’s benefits.
“This is a great program that will help auto dealers, auto makers, consumers and the environment,” said Weiner. “Families that have been feeling the pain and the pump for years are now able to upgrade to a car that will put more money in their wallets and less pollution in the atmosphere.”
A fully successful program would reduce air pollution by 300,000 of carbon dioxide emissions, according to federal government estimates, noted Weiner, a member of the House Energy and Commerce Committee, about the carbon-footprint effect.
Praising the program’s first successful phase and also voting for its extension, McMahon (D-Brooklyn/Staten Island) was also enthused by its initial results. “This is just one example of the stimulus programs that can help benefit the American people and they are clearly catching on,” he said.
“Cash for Clunkers helped grow our economy, promote clean energy through cutting down on pollution, save money at the pump, aid the ailing American auto industry and reduce foreign oil dependency,” McMahon said. “About 245,000 cars [nationwide] have been brought through the first phase and is expected to spur sales of up to 800,000 more fuel-efficient cars and trucks.”
As the program went along there was some grumbling that it was not working as promised as auto dealers complained about delays in receiving rebates.
In response, last week U.S. Transportation Secretary Ray LaHood promised frustrated dealers that their rebates would be sent faster as extra cleared the applications backlog. Dealers give customers credit and the dealers filed for reimbursements.
“We’re getting the gas-guzzling vehicles off the road; 83 percent of trade-ins under the program are trucks and 60 percent of new vehicles purchased are cars,” said U.S. Senator Kristen Gillibrand (D-N.Y.). McMahon and Weiner noted that by 2016 all new cars will have to average 39 miles per gallon, with the new mileage rules to be phased in starting in 2012.
There are no plans to extend the program, government officials said. Monday’s deadline was set to avoid surpassing the $3 billion funding level, given deals that may be made this weekend and those that are still in the pipeline for approval.
Applications for rebates will not be accepted after this Monday’s 8 p.m. deadline, administration officials said. The Transportation Department cautioned dealers about making sales this weekend, advising them to make sales only where the buyer’s paperwork is clearly in order and can be submitted immediately for repayment.
Dealers will still be able to resubmit rejected applications after the deadline.
--Additional Reporting from Associated Press
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© Brooklyn Daily Eagle 2009
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Just a reminder, though -- It’s not considered polite to paste the entire story on your blog. Most blogs post a summary or the first paragraph,( 40 words) then post a link to the rest of the story. That helps increase click-throughs for everyone, and minimizes copyright issues. So please keep posting, but not the entire article. arturc at att.net