Cash for Clunkers program suspended Friday midnight due to lack of cash

The cash for clunkers program in the U.S. will be suspended at Midnight Friday after just a few days running because it has run out of funds.

The cash for clunkers program was funded with 1 Billion dollars, where a maximum amount of $4,500 was to be paid for each car brought in. When you consider that $4,500 would only bring in 20,000 vehicles before eating up the kitty, that’s not much of a dent in the estimated 50 million vehicles in America that would qualify for the program.

The cash for clunkers program will be suspended midnight Friday while to Obama administration seeks an additional $2bil to reopen the program in the future.

In an official statement released by The National Automobile Dealers Association:

“We do not have confirmation yet of DOT suspending the clunkers program, but if the program is indeed suspended, NADA will continue to work with the Department of Transportation to emphasize the importance that every dealer is reimbursed for a valid deal. We will also work with the Obama Administration and members of Congress to meet the demonstrated consumer interest in the cash-for-clunkers program.