House Puts "Cash For Clunkers" Program Back In Gear, says Brian Benstock

By: NY1 News
07/31/2009

The House of Representatives pushed through a $2 billion bill Friday to resuscitate the ailing "Cash For Clunkers" program.

The program offers owners of old cars and trucks stipends toward a new, more fuel-efficient vehicle. If the new car gets at least more four miles per gallon, the buyer gets a $3,500 stipend. A model that gets 10 or more miles per gallon will fetch a $4,500.

Lawmakers say the funding will come from the $787 billion economic stimulus bill and would give consumers more time to take advantage of the trade-in.

President Barack Obama praised lawmakers for their swift action.

The Senate is expected to vote next week.

Senator Charles Schumer says he will urge his fellow senators to pass the measure.

"Here's the bottom line. Cash For Clunkers is helping jumpstart our weak economy and we simply can't allow the program to stall," said Schumer.

In the meantime, the senator said people can still take advantage of the program.

"New Yorkers who want to take advantage of the program should still be able to go to their local dealerships this weekend and sign up for the benefit," Schumer said. "And we're going to make sure that they get their voucher, as we said, by increasing the allocation, probably by $2 billion in the House and Senate this week and next. And due to the tremendous success of the program, we will then look to extend it for an even longer period of time."

On Thursday, administration and Department of Transportation vehicles said that the $1 billion in rebates were drying up, only one week after the program went into effect.

One senator from Michigan said about 40,000 new vehicles have been bought through the program.

Dealers estimate that another 200,000 have been sold in transactions that have not yet been completed through the program.

"I really never thought so many people would come out so quickly to take advantage of it," said Richard Cappetta of Manhattan Auto Company on the West Side.

"The program is a winner, it's the best thing the Obama administration has done thus far," said Brian Benstock of Paragon Honda Queens in Woodside.

Car dealers told NY1 that while the program does come with some extra paperwork, they're happy to do it.

"We've been moving along and the customer for the most part, it's been pleasant for them, we're the ones dealing with all the red tape and paperwork," said Cappetta.

"I came for that reason and if not, well then I just keep my old car and that's it," said Queens car shopper Augustin Gomez.

Cars that are traded in can't be more than 25 years old and has to get less than 18 miles a gallon. They also have to be insured and registered to the buyer for the past year.