Cash for Clunkers extended to Labor Day

(NECN/ABC) – The Senate voted to extend the Cash for Clunkers program until Labor day. Democratic lawmakers praised this stimulus program. “We’re hearing from dealers all across the country talking about the success of this program. Something for consumers,” Sen. Debbie Stabenow (D-Mich.) said. Senate supporters voted down amendments that would stall the $2 billion initiative. That’s because any changes here would require another vote in the House currently on summer break. Still, Republicans argued Cash for Clunkers is another government handout. “I’ve had calls from constituents who said they want help for golf clubs,” Sen. John McCain (R-Ariz.) said. Other winners besides the ailing auto industry include car buyers, who on average got double what their clunkers were worth, according to Edmunds.com. The website also reports that: Prior to the program, 39-percent of new car sales involved a trade-in vehicle. After? 51-percent were trade-ins. Before the program, 9-percent of exchanged vehicles would qualify as clunkers. After? 39-percent qualify. The program was not without its glitches. Before the extension of the program, some dealers, who worried they would be on the hook if the program ran out of money, asked customers to return the cars . Extending Cash for Clunkers has some automakers, including GM and Ford, considering an increase in production, which means some laid off workers could soon be called back to work. ABC’s Viviana Hurtado reports.