Clunkers Program To End August 24

It didn't last long: one month to be precise. The American public ate through the $3 billion stimulus program for purchasing new, efficient cars and trucks as fast as they could qualify their older gas guzzlers for the $3,500 and $4,500 credits.

1 minute read

August 22, 2009, 7:00 AM PDT

By Irvin Dawid


Alas, all good things must come to an end - sometimes prematurely. Precise numbers are not available for how many of the cars turned in through the Car Allowance Rebate System (cars.gov) actually qualified for the credits as it is estimated that as many as 80% of the claim forms had errors according to a National Automobile Dealers Association report.

While it is estimated that when the program ends Monday, only $2 billion of the $3 billion of credits may have been reimbursed to the new car dealers, the program was on track to exhaust the additional $2 billion authorized by Congress only 2 weeks ago (August 6).

What may have caused the program to end early was the reimbursements due the dealers. It turns out that the Department of Transportation hadn't expected the tremendous interest in the program and could never process the claims as fast as the dealers could submit them.

The program had its share of critics - from those who claimed that it was funding too many light truck purchases and from environmentalists who claimed the program was not an efficient way to reduce greenhouse gas emissions.

Thanks to Mark Boshnack

Thursday, August 20, 2009 in AP via ABC News

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight