By David Schoetz

Jul 30, 2009 11:34pm

Closing Arguments: More Cash for Clunkers?

Less than one week after launch, the government's "Cash for Clunkers" program is in danger of stalling out. The reason? It has been too popular. Too many Americans were taking advantage, turning in old cars for big rebates on new, fuel-efficient vehicles. And the program was speeding toward its 25,000-vehicle, $1-billion cap. Now, Congress and the White House will have to decide whether to allocate more money. So tonight, we ask: Should this program be continued? Or has the government put enough money toward this particular cause? Tell us what you think. You can follow "Nightline" anytime on Twitter: http://twitter.com/Nightline.

User Comments

I would say the government should allocate more money because this is stimulating the auto industry but lower how much per clunker so more people may be able to take advantage of the program.

Posted by: Wayne Begarly | July 31, 2009, 12:07 am 12:07 am

Cash for Clunkers is about to be out of money!! ohh no!! how is that possible… All we have to do is print up more money. I mean thats the American way…. “spend today what you can save for tomorrow” for all who are my age just remember .. we once were the “youth” people were saving for. Now we are spending what was never left for us and more. WAKE UP!!!5

Posted by: Franz Musial-Aderer | July 31, 2009, 12:08 am 12:08 am

Cap it. Let’s spend the next billion on something of a bit more benefit to the American people, shall we?

Posted by: Lis | July 31, 2009, 12:09 am 12:09 am

Expand the cach for clunker program, but let parts sold at used parts dealers

Posted by: Owen Carter | July 31, 2009, 12:10 am 12:10 am

I think the gov should continue the program. Let the everyday American get some personal benefit from the stimulus package.!!!

Posted by: ann hood | July 31, 2009, 12:12 am 12:12 am

Although the government is stimulating the ecomony with this program. The design of the program should have been targeted to stimulate the industry of American made cars. If the decision is made to continue the program, please revamp it to ensure we are promoting American made products.

Posted by: Ann Arendt | July 31, 2009, 12:13 am 12:13 am

Absolutely the feds should continue this program. As I read earlier today, someone said this is the most effective $1B the gov’t has spent during the entire economic downturn. I think it’s interesting that the gov’t (driven by ridiculously overpaid lobbyist) can approve $750B for banks, which didn’t really do much for any of us besides the big banks, but a $1B program which directly affects the citizens of this country and is obviously very well received, is having a hard time finding support to be continued & expanded……..typical.

Posted by: Matt Smithers | July 31, 2009, 12:13 am 12:13 am

The government has put enough money into this program. The amount per vehicle should have been more limited so that more people could have used it. It should also have limited the funds to the less expensive cars and to American made cars.

Posted by: Sam | July 31, 2009, 12:15 am 12:15 am

Great & Timely Program.
Stimulates the economy.
Assists the Auto Industry = JOBS
Fuel Efficient Autos = Cleaner Air
YES—
FUND CASH FOR CLUNKERS!

Posted by: Angela DeWree | July 31, 2009, 12:16 am 12:16 am

The Dem’s finally found a way to stimulate the economy so now what do they do – pull the plug on “Cash for Clunkers” after just one week.
What is next – Health Care for the nation – only for a week????

Posted by: Ann | July 31, 2009, 12:16 am 12:16 am

The government has to allocate more money it has truly helped to stimulate the auto industry. What about all those people like me who have taken their clunkers to a dealer and have contracts pending? This was a great idea but the main issue is that the government has made the process too complicated, too much government paperwork.

Posted by: terry | July 31, 2009, 12:16 am 12:16 am

I had a 91 Chevy Van (14 mpg)that qualified for the cash for clunkers, but it would not let me use it on a Hybrid Prius. I thought the aim was to get the gas guzzlers of the street. Why shouldn’t it be used for any model that gets better mileage.
It should be contined to help the fuel usage of the US as well as stimulate the auto business, which will trickle down the chain

Posted by: Judy Williams | July 31, 2009, 12:17 am 12:17 am

Re-think it, but continue it. Lower the cash amount, focus on the “Green” objective, and less on the politics of propping up the auto industry

Posted by: Woody | July 31, 2009, 12:18 am 12:18 am

yes they should out more money into this program.Some of us older people can’t aford a new car with out this .

Posted by: alice | July 31, 2009, 12:18 am 12:18 am

The problem with this program is that it is just another example of a program that has not had enough thought behind it before being rushed into use. Now after only one week and its success, find a way to continue it because it at least is helping the auto industry and the average citizen.

Posted by: Helen Murray | July 31, 2009, 12:19 am 12:19 am

No, the program should not be continued. It is wasteful & is taking away all of the available low priced cars for the people who can only afford to buy used cars and don’t qualify for a car loan. The auto manufacturer should be offering the buying incentives, not the government.

Posted by: Cindy Phillips | July 31, 2009, 12:23 am 12:23 am

I agree with Ann Hood. The design of the program should have been targeted to stimulate the industry of American made cars. I’m sure GM want to pay the goverment off as fast as possible and I’m sure the goverment wants their money back as fast as possible. Keep AMERICANS working.

Posted by: Dan Dorsett | July 31, 2009, 12:26 am 12:26 am

I’m glad the bailouts are helping the auto industry but what about the negative domino effect on an already ailing recycle market, used car dealers, auto repair shops not to mention the many worthwhile charities who have come to depend on auto donations to support their causes in this failing economy. I’m hoping that the CARS program comes to a quick end so that other areas of our economy have a fighting chance to survive.

Posted by: Kelly | July 31, 2009, 12:29 am 12:29 am

The problem wasn’t that there was not enought thought put into the program, but that it was changed from the original intent by legislators other than the author of the bill. It was suposed to be a way not only to get rid of old gas guzzlers (and stimulate car sales) but also a way to help lower income people afford new cars. The problem was that the amount that people could spend on a car was increased and the amount of the rebate was increased – which changed it from the original intent and made the funds available to some people who could well afford to buy vehicles without these funds. It should have been more limited and should have paid more to those who bought American made vehicles.

Posted by: Sam | July 31, 2009, 12:30 am 12:30 am

Yes, keep it going. It is stimulating the economy. If the banks had been required to give loans with the money they were given, we would be out of this recession by now. This program actually works. Now if we can just get a real good Public Healthcare Option approved to help cut healthcare cost and cut down on the billions of profits made by the greedy insurance companies.
Healthcare Insurance companies should be non-profit.

Posted by: Chet | July 31, 2009, 12:32 am 12:32 am

There is usually a reason people drive clunker cars…it is because they cannot afford to buy a new car. So I think it is great that it is helping lower income people…also helping the auto industry…helps the new car owners by saving $ at the gas pumps…helps the U.S. as a whole because we reduce overall gas consumption…reduces air pollution (a benefit for us all). So I hope they give another billon to this program…best money they ever spent to help the economy…and like one other person said, quit giving it to the banks…what good has that done…give it directly to the people. This program benefits everyone who breathes!

Posted by: Sherry | July 31, 2009, 12:32 am 12:32 am

If the clunkers for cash program has reached its budgeted limit ($1b) it should be ended. Deficit spending which will only hurt taxpayers in the long term makes no sense for this program.

Posted by: Jim | July 31, 2009, 12:35 am 12:35 am

What should I do. Wait for the next going out of business sale?

Posted by: micheal johnson | July 31, 2009, 12:36 am 12:36 am

For the people who intended to take advantage of the program but had the rug pulled out from under them by just cutting it off without warning, I say pull more money from a less successful stimulus program to continue this one.

Posted by: Valentino | July 31, 2009, 12:39 am 12:39 am

They do something that really stemulates the economy. It works so well they think they better stop it before we recover. To put out a program and then pull it back is STUPID.

Posted by: Rick | July 31, 2009, 12:40 am 12:40 am

I think the program should continue

Posted by: M Fullmer | July 31, 2009, 12:42 am 12:42 am

Continue it, Expand it, Fund it! A stimulus package that really works, We have been researching the makes & models of cars since we heard about it and were going to go to the Chevy dealership tomorrow. I heard about the suspension at 9:09pm tonight & just cried because all of our dealerships were already closed. I have a 1999 Dodge GrandCaravan that is falling apart at the seams and I am a substitute teacher with 2 college degrees making $8,000.00 a year because they are closing schools here in OHIO right and left. Give us a break and continue this smart program

Posted by: HollyK | July 31, 2009, 12:46 am 12:46 am

I feel the program should be continued, the total allowance should be reduced to a max $2500.00 in free credit and allow an additional 2,500.00 in the form of a low interest federal loans @ 3% which would be returned to the treasury and should be processed through the dealer.
Also you would allow more people to take advantage of the program if they increased the age of the qualifying clunkers to 30 years (1979).
Only American manufactured car’s should qualfy but all brandsactually manufactured in the U.S. should be included, and a retail ( MSRP) price cap of $25,000 – $30.000 should be set.
Also audit the first group for fraud to insure that they legit and our tax payer money is well spent.

Posted by: Daviid Rifkin | July 31, 2009, 12:46 am 12:46 am

Why should I have to pay fellow Americans to buy cars that were not made in this country? This is the most idiotic stimulus ever. Additionally, has anyone ever wondered about the environmental effects of this? Think about this, is it ecologically feasible to junk an 8 year old BOF full-sized SUV that get 17MPG and probably has another good 5 to 10 years of use in it for a 23MPG mid-sized car-based SUV that may not be a product of the U.S.?
Stupid.

Posted by: Joe Gakenheimer | July 31, 2009, 12:50 am 12:50 am

I think it’s a great program but they should put a income limit on it… Basically if someone can afford to buy a new car..they shouldn’t get government $$.. They should have a family income cap of $100K per year to assist middle income families who are needing a new car but unable to think about purchasing.. Trying to find reliable transportation was my single hardest part of completing college and even in my 30′s it’s major heartache..and saves GM and reduces their unwanted inventory.

Posted by: Nichole | July 31, 2009, 1:20 am 1:20 am

This program is like a national lottery. If you have the right vehicle to trade in you win. If you don’t you lose and are paying for the winners through your taxes. I have a van that was manufactured in 1982 (losing ticket) which I would love to trade in. I will continue to drive it for another couple of years. It is too old and inefficient to qualify. Go figure.

Posted by: Pete | July 31, 2009, 1:27 am 1:27 am

I believe that it should definitely be funded with additional money since it helps the consumer, the environment and the economy.
In addition, I feel that the program should also be amended slightly to allow a “severely” mobility impaired wheelchair bound person that does not have the ability to walk, or get into their new car and just drive it off the lot, but allow such a person to hold on to their current automobile for a period of time and not have to surrender it immediately after buying their new automobile as it is currently written into the program, since such a person cannot drive the new automobile until it has been modified with hand controls ramps, lifts etc for them to drive it.
I welcome others input about this, as well as people contacting their congressmen/woman and senators to support this amendment issue to the program!

Posted by: PJ | July 31, 2009, 1:57 am 1:57 am

Had my car in for service this past weekend, and in the two and a half hours I was there, the dealership sold 25 cars. They even had a crusher on site to take care of the trade-ins. In the same two and a half hours the government changed it’s mind at least ten times on how the program was to be run. By the sheer numbers of cars sold…was this program successful? Hell yes !!! Were these American cars. NO !!! The people bought what they wanted from the dealers they TRUSTED !!!
Congress and the White house appropriated 1 billion dollars for this program, while they gave the UAW and the automakers hundreds of billions in bail-outs… What’s wrong with this picture? Now they want to “jerk the carpet” out from under this obviously successful effort after one week??? Whose interest do these fools really have at heart??? I say cut the pork, fund the program, and really stimulate the economy for a change… just goes to prove that “Trickle Up” economics works !!! AND THE BEAT GOES ON… SOSDD !

Posted by: Nachthexe | July 31, 2009, 2:03 am 2:03 am

THINK!
Who are the American people that this economic stimulus is to support?
Is it Chase Manhattan? Is it GM? Is it IAG?
The poor slob with close to minimum wage who has had his credit destroyed by the ursurpers finally has a chance to buy an automobile that will benefit both the country and his family.
Volkswagen, designed by Porsch in the 1930′s was made for the ordinary German who needed transport that made sense.
Porsch decided to make Panzers.
Don’t waste this opportunity to give American people a chance to have a family car.
Keep the auto industry and the financial industry within bounds and more productive.
THINK! of the poor slob who is killing himself to stay afloat.

Posted by: bill | July 31, 2009, 2:08 am 2:08 am

This program is obviously an example of someone “thinking outside the box”. It worked, and now Congress and the White house want to pull the plug. Fund it and many more will benefit…do something for the common citizen for a change. With more of this type of thinking and the economy might just survive!!! Quit propping up the auto industry, we gave them the money, NOW LET THEM EARN IT !!!
This move by Congress makes one really wonder about the Healthcare Initiative eh???

Posted by: pro from dover | July 31, 2009, 2:38 am 2:38 am

The program should definitely continue. The program is doing what it is intended to do. Stimulate the economy and help the ailing auto industry. Not to mention how it is grossly unfair for the program to terminate before interested consumers have a chance to participate. Thier should be a time constrant, like I thought it was, and not a monatery constrant. The program should run for the time period which was given. Do the right thing. Continue the program.

Posted by: willie | July 31, 2009, 2:41 am 2:41 am

Hell, no! Stop this sham. Waste of taxpayers money.

Posted by: geo | July 31, 2009, 3:10 am 3:10 am

NO.. the citizens are better served by a national health care system.
Who benefits from the car subsidy? Only those who can afford to buy a new car (credit available, income qualifications, etc.). They could buy a new car without the subsidy… they did a big subsidy for HUMMERS too, a decade ago… most tax payers never heard of that one.
The new cars get better miles-per-gallon, but exhaust emissions aren’t changed for the subsidy (green house gases).
The estimated final cost of the bank/financial/auto industries is projected to wind up (according to CBS news recently) at $23.7 trillion dollars; but the republicans shudder about a mere $1.3 trillion dollar cost for a national health system… while a number of our wealthy allies (the g8) do have, and have had for a long time, national health programs for their citizens. American government has lost it’s sense of priorities (the Americans).

Posted by: Ken | July 31, 2009, 3:14 am 3:14 am

One more final observation…
clunkers “trickle down” and most are
owned and driven by lower income people..
They don’t have credit to buy new cars,
and will remain driving those gas
guzzlers, since that is about all they
can afford.
I’ve seen pictures of trashed out cars,
that don’t appear capablle of running,
used for a $3500-4500 trade in. I fear
Too many people are “cashing in” in ways
not intended with the good-will of the
program.

Posted by: Ken | July 31, 2009, 3:20 am 3:20 am

Yes, the response shows that the program
is working. I do believe that the program should be limited to or encouraged to benefit the American auto companies that need it the most

Posted by: jim j. | July 31, 2009, 3:25 am 3:25 am

One comment was so right if Banks and other businesses can get huge amounts of money why can’s Americans get a car that is cost effective so they can afford to get to their daily work and norish their souls on the weekends by being able to go to church.Is there anything more positive ? However used cars that are energy efficent should be allowed.

Posted by: Jim Guynup | July 31, 2009, 3:48 am 3:48 am

Absolutely continue it! It was the most effective stimulus yet. I was trying to get an answer about a 1991 Cadillac which was a real gas guzzler and the 5.7 liter engine in it was not listed on the govt’s website. Hours were spent on the phone, waiting for an answer to the question of eligibility and never received.
I think some of these cars that are being traded in should be donated to
people in real need and not necessarily outside the U.S.

Posted by: Rob | July 31, 2009, 4:03 am 4:03 am

First it’s a great idea. But if it’s really to help get better fuel economy and get older auto’s off road, then the cars qualifying should have at least 125,000 miles or be 10 years old and better. I’m single, not working as many hours and desperately need a better vehicle. I have been researching auto’s the last couple days to see what would be the best deal for me, And now it’s suspended! I have an 89 Dodge with 250,000 miles. I really think that’s the kind of car you would want to consider a clunker, not people with 4 or 5 year old cars. Rethink the plan. It’s a great idea and getting car sales booming again. And yes the cars should be american made only.

Posted by: Kathy | July 31, 2009, 5:13 am 5:13 am

Since most 6-cylinder, 2WD drive cars couldn’t pass the revised EPA mileage requirement of less than 18 mpg regardless of how polluting they are, the program didn’t help the average car owner or the environment. The program in its current format should be terminated and re-tooled to work for smaller cars with additional requirements imposed on auto dealers to ensure that they do not substitute taxpayer funded rebates for the discounts that they otherwise would have offered to make a sale.

Posted by: Don | July 31, 2009, 9:05 am 9:05 am

SO SAD, I was going to use this program, I haven’t had a new car in 25 years. Now it is too late. Very disappointed. Now instead of a car payment I will have repair bills and huge fuel cost. I’ve been driving a ‘gezzer mobile’ for the last four years, it is big and a gas guzzlier. And I drive for one location to several locations everyday. Today is the day that I could be off work to trade in my Lincoln. So much for a brighter future, not gonna happen here.

Posted by: Chrissi | July 31, 2009, 9:52 am 9:52 am

Am I missing something here?
25,000 klunkers could cost no more than $112,500 MILLIION dollars — that is a mere 1.3 ONE-HUNDREDTHS of ONE percent of the stimulus money. It would take nearly 250 THOUSAND klunkers to cost a billion dollars.
If this is not going to be just nother palliative, a asmall dog thrown to the taxpayers, should we not be stimulating the auto industry by funding a dcouple of million new cars – especiallyas it seems about 3% of the stimulus packeage could be used to revitalize the largest single industry in the country – and DIRECTLY benefit the average consumer and genaeral businesses… not to mention that HUNDREDS of BILLIONS of TARP and Stimulus $$$ already have gone to a few fat-cat financial institutions who have done very little to provide necessary lending funds to the business people who support this economy.

Posted by: Numbers Guy | July 31, 2009, 11:27 am 11:27 am

I don’t understand this maddness, they take away money from a program that helps keep low income families in housing and being able to provide security for children and families, and come up with something as stupid as cash for clunkers. All this is doing is prompting people to go out and create a bill they can’t afford thinking it’s a good deal. I wish the government would put the money back into the government housing, foodstamps, cash assistants and keep the families in the homes they have, providing what little security to the family as possible. taking the money away is going to force more people, and children out on the streets and more hunger. In the long run it’s going to create looking for assistants for soup kitchens to feed the homeless and hungry.

Posted by: kathy | July 31, 2009, 11:37 am 11:37 am

Seems a very misguided program so kill it now.
It should have been limited to trading for new cars with significantly better gas mileage and linked to increasing taxes on gasoline to be used for bonuses to American companies that produce much more efficient cars. That way people would both be encouraged to drive less and more efficiently as well stimulate economy and make us less dependent on oil.

Posted by: David Altman | July 31, 2009, 11:55 am 11:55 am

This program was an outrageous waste of taxpayers’ money (my money!) and it should never have happened in the first place. The clunker program was a clunker. The politicians who conceived it should be immediately impeached.
When I have bought new vehicles, I saved for years in advance to get ready for it and I traded in my old vehicles. I did not get any taxpayer money.
This is just yet one more example of how stupid and incompetent our miserably failed government is. This is the same failed government that cannot even provide its citizens with their most basic needs, which are a single-payer, nationalized, universal pension system and a single-payer, nationalized, universal healthcare system–both of which should not have any involvement whatsoever of greedy insurance companies.

Posted by: Proud Native American and Independent Voter | July 31, 2009, 1:00 pm 1:00 pm

NO! This is just another SOCIALIST pro-gram! Where is the money coming from to pay for this? From thin air!!

Posted by: Kathy | July 31, 2009, 2:07 pm 2:07 pm

This is just another waste of taxpayer’s money. Folks think it is the Givernment’s money being spent. Wake up America it is your heard earned money that is going to pay for mismanaged financial, insurance, and other businesses. If it were a individual you would be in bankruptcy with no government assistance. Absolute a no vote for Cash for Clunkers

Posted by: Dub | August 1, 2009, 8:44 am 8:44 am

Keep the program for pity sake!! I don’t qualify and even if I did ..I won’t spend that kind of money on a car that cost as much as a down payment for a house. But the program is working and for a change the little guy is getting their taxes back in a weird way… It works don’t mess with it!

Posted by: Patricia | August 3, 2009, 6:09 pm 6:09 pm

With the insane spending budget Obama put forth, 2 Billion-shot in the Obama ocean. Good for the little guy???

Posted by: crackmeupp | August 6, 2009, 5:19 pm 5:19 pm

Absolutely! I’d still be driving my still in great shape 1995 jeep cherokee and would have replaced it with a used vehicle in 4-5 years. The program has definitely encouraged me to get rid of the trusty jeep, increasing my mpg from 15 mpg to 30, but MOST important – reducing my annual contribution of money being stuffed into terrorists pockets by HALF and keeping my money on American soil in American companies!! Still too much money going into terrorists pockets for sure! But, I’d much rather have my money go to a legitimate business and contribute towards GDP instead of mass consumption of a limited quantity commodity that is primarily supplied by terrorist nations.
People can crab all they want about politics internally, but the truth is that the program working and is has far more benefit that what all the naysayers claim.
Quantifying the numbers in a quick calculation, if we can pull 1 million clunkers off the road, for each vehicle, the assumption is that mileage increases 15 mpg and drives the national average of 12,000 miles, then we would save 400 gallons per year per vehicle, or 400 million gallons. the 400 million gallons of gas would require an average barrel of crude to yield at least 50% gas (yes, it is a high end assumption) and that in turn means that America would be importing AT LEAST 19 million LESS barrels of oil (1 barrel = 42 gallons, at 50% yield, each barrel of oil would make 21 gallons of gasoline, thus 400 million gallons of oil would compute as follows:(400 million gallons/.50 yield)and divide that result by 42 gallons/bbl equals 19 million bbls.
Yes, fund the program for AMERICANS or fund the terrorists through higher gas consumption which leads to higher gas prices. I choose America. I choose my country first!

Posted by: M-girl | August 8, 2009, 1:18 am 1:18 am

Leave a Reply

Do you have more information about this topic? If so, please click here to contact the editors of ABC News.