THE HELP DESK The Help Desk: Top Tips

Cash for Clunkers nearly in gear

The House passes a $2 billion extension as the surprise popularity of the car buying incentive program has it close to running through its $1 billion budget.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Gerri Willis, CNN personal finance editor

home_rich_cover.03.jpg
For more information on managing your largest investment, check out Gerri Willis' 'Home Rich,' now in bookstores.

NEW YORK (CNNMoney.com) -- Cash for Clunkers, the federal program that allows you to trade in your gas guzzler, smacked into a roadblock this week after it became clear the program is already close to burning through its $1 billion budget. The White House made clear today that the program will extend at least through the weekend if not longer. The House just passed a $2 billion extension to the program but the Senate is not expected to vote on the measure until Monday.

Let's take a look at the math.

According to the latest figures from the National Highway Traffic Safety Administration, about $146 million has approved to be given out already. And according to the National Automobile Dealership Association, about $1.2 billion is projected to be given out. Keep in mind that the program was allocated $1 billion from the beginning.

Demand is simply overwhelming -- 23,000 dealerships have signed onto the program. Experts say that dealerships had started declining people for the program earlier this week.

The program was supposed to officially end on November 1st. The speed at which this program was put on hold was pretty surprising to experts who estimated the program would run out of money by mid to late August.

If you want to trade in your clunker, make sure you don't sign a waiver that forces YOU to pay the voucher if your deal doesn't go through. And, have the dealership wait to destroy your old car until they are absolutely sure that you are getting the voucher money.

Of course you shouldn't forget to negotiate the deal -- yes you are getting help from the federal government to buy the car but that doesn't mean you shouldn't get the best possible price. Check out Web sites like edmunds.com and consumerreports.org for strategies on negotiating.

Remember, act quickly -- one expert we talked to at Consumer Reports says that it's entirely possible that Congress may tighten the requirements on mileage in the future to get better results out of the program.

In the meantime, any purchase this weekend will honored according to the White House -- so if you are in the market to get rid of your clunker you will probably want to act quickly -- and it is likely that Congress will extend that program beyond this weekend.

Got a financial dilemma? Go to CNNMoney.com/helpdesk to submit questions, read the Help Desk articles and check out new Help Desk videos. And tune in to CNN's Newsroom Tuesdays and Fridays, when Gerri Willis and other experts answer your questions. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.