Cash for clunkers program may be running on empty

By By The Associated Press

Story Created: Jul 31, 2009 at 7:05 AM EST

Story Updated: Jul 31, 2009 at 7:05 AM EST

WASHINGTON (AP) - The White House says it's reviewing options to keep the "cash for clunkers" program going.

The rebates aimed at getting gas guzzlers off the road have proven so successful, the money to pay for them is drying up.

The program offers owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle, in exchange for scrapping their old vehicle.

White House press secretary Robert Gibbs says officials are working to "assess the situation." Gibbs says auto dealers and consumers should have confidence that all valid transactions to date "will be honored."

The program was scheduled to last through Nov. 1 or until the money ran out, but few predicted it would be depleted in days.

Lawmakers said they would try to find additional funding for the program, which under the legislation could grow to $4 billion for the funding of up to 1 million new car sales.

(Copyright 2009 by The Associated Press. All Rights Reserved.)
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