WASHINGTON, D.C. — Car shoppers and dealers across the country breathed a sigh of relief yesterday when the Senate approved a House measure adding $2 billion to the wildly successful "cash for clunkers" initiative. The additional funds will allow dealers to continue offering consumers rebates of up to $4,500 to trade-in an older gas-guzzler for a new, more fuel-efficient car or truck. 
The measure was passed by a vote of 60-37. The additional funding is expected to keep the program running through Labor Day weekend.
"Cash for clunkers is a resounding success," said John McEleney, chairman of the National Automobile Dealers Association (NADA) and a multi-franchise dealer in Iowa. "With the additional $2 billion, even more ‘clunkers’ will be taken off the road and replaced with more fuel-efficient vehicles. Extending the ‘clunkers’ program benefits the environment and the economy. It’s the best kind of stimulus."
A NADA survey also revealed an environmental benefit: consumers were purchasing or leasing vehicles eligible for the higher $4,500 credit (a 10 mpg improvement over the trade-in) by a two-to-one margin over the $3,500 credit (a four mpg increase over the trade-in). Also, the additional $2 billion funding for the "clunkers" program substantially reduces the risk that dealers will not be reimbursed for deals already completed.
Many aftermarket associations were vocal in their opposition to the bill, out of concern that the program prematurely destroys vehicles and their valuable parts and components.
