If you were planning on buying a new car this weekend, taking advantage of the government’s offer to pay you $3,500-$4,500 on the purchase of a lower mileage car if you trade in a gas guzzler, you may be out of luck. The government has suspended the program because the demand has been so great there is a backlog of claims processing and the program has already burned through the $1 billion that the government has allotted. Because of the popularity of the program, some lawmakers want to continue the program, giving it more money. In the meantime, dealers, who have been advertising the deal heavily, are unhappy that they can’t give the customers what they had promised.
Is this a good use of taxpayer money? It has stimulated the auto industry, that’s for sure. But is it right?
UPDATE: You can go ahead and buy a car this weekend after all. The program has been extended, and the House has voted to chip in $2 billion more dollars.
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