White House: 'Cash for clunkers' good thru weekend

ByABC News
July 31, 2009, 12:38 PM

— -- The Obama administration promised Friday that the financially strapped "cash for clunkers" program would be alive at least through the weekend.

"If you were planning on going to buy a car this weekend, using this program, this program continues to run," White House Press Secretary Robert Gibbs told reporters.

Democrats in the House and Senate were exploring the possibility of votes as early as Friday to replenish the funding for the hugely popular program.

Reps. Sander Levin, D-Mich., and Betty Sutton, D-Ohio, said the House planned to consider the additional funding after lawmakers from the two states were assured by Transportation Secretary Ray LaHood that the program would continue while the Obama administration looked for more money.

John McEleney, chairman of the National Automobile Dealers Association, said many dealers have been confused about whether the program will be extended and for how long. Many stopped offering the deals Thursday after word came out that the funds available for the refunds had been exhausted.

"We are hoping for some clarity from the White House and Congress before the day is over," McEleney said Friday.

Carmakers and dealers have booked expensive advertising to capitalize on buyers' interest in CARS, and now will be left promoting a tie-in with an uncertain government program one that wasn't supposed to end until Nov. 1. "Disappointed," said Chrysler spokesman Scott Brown.

"It's too late to recall the ads," says Beau Boeckmann of Galpin Ford, the nation's largest Ford dealer, in Los Angeles. Galpin had done about 100 clunker deals and was hoping for more. " We had increased our ad budget to get the word out. We are very heavy on radio, newspaper and getting direct mail together," Boeckmann says.

"Now what do you tell people when they walk in" for a clunker deal? "It's tough."

Members of the Ohio and Michigan congressional delegations huddled on Capitol Hill to discuss ways to keep the popular program alive.

Sen. Carl Levin, D-Mich., said it wasn't clear when a Senate vote would be held.