Cash for clunkers runs out of money; gov’t gonna throw more money at it. Who would’ve guessed?

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So the cash for clunkers program has been suspended. Or not. Autoblog reports that dealers have requested $95.9 million from the program – about a tenth of the $1 billion set aside that was supposed to last through November 1, so Congress and the White House are concerned that the money will be used up too soon. Edmunds and the AP both report that the White House is currently reviewing the program, likely so they can request more funding for it. And TTAC has this theory that this is all going down because the dealerships ran out of inventory too fast.

Not to say we told you so, but we told you so. Though we didn’t anticipate this exact scenario, we did predict that if the money ran out, Congress would consider extending the program.

Meanwhile, reader Bryan Gadow sent us some photos of a formerly vacant lot in town that the local dealership (Preston Automotive Group in Preston, Maryland) has been using to store its cash for clunkers trade-ins:

It has been filling up quite fast. When I first looked maybe 1 1/2 weeks ago only the back row was filled. I stopped by earlier today to get the photos but there were salesmen bringing in another 3 “clunkers” and I didn’t want to stir a controversy. If I picture in my mind the type of vehicle that should be traded in under this program I mostly think of, oh, a ‘93 Grand Am 4dr with a bashed in door, slipping transmission and 325k on the clock; or maybe a rusted-out Nissan pickup from the 80s. Take a look at these photos-to me they are really sad. All of these specimens were driven in, and soon their engines/ transmissions will be destroyed.

Even though I’m not a Ford truck enthusiast, this still sucks. Hey, is that a ZJ Grand Cherokee back there? C’mon, I could use parts off that!

If you have pictures of your local dealership’s “clunkers,” send them in. We want to see just what people are discarding like so many tin cans.

UPDATE (31.July 2009): Here comes the cash. The House approved another $2 billion in emergency spending for cash for clunkers today.

Oh, and I’m not the only one who believes this could go on indefinitely. Mark Tapscott thinks it could become permanent (via).



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