Posted by Web Staff - email | Facebook | Twitter
NEW YORK (CNNMoney.com) -- This much seems certain about the Cash for Clunkers program: Consumers are happy to take government rebates to buy new cars.
The fate of the $1 billion trade-in program was up in the air over concerns that it may have already burned through its funds less than a week after it was launched.
Congressional sources said early Thursday evening that the program would be put on hold. But Obama administration officials said later that Clunkers had not been suspended and that they were studying the situation.
"Auto dealers and consumers should have confidence that all valid ... transactions that have taken place to-date will be honored," a White House official said in a statement.
An official at the Department of Transportation, which manages Cash for Clunkers, said the administration would try to work with Congress to find more funds to keep it going.
One of the program's main champions in Congress, Sen. Debbie Stabenow, D-Mich., called on Congress to appropriate more money.
Stabenow said the effort has provided an important boost to the economy and resulted in 200,000 car sales.
"I am delighted to hear dealers say that all of their salespeople are busy and they are selling more cars in a day than they had been selling in a month," Stabenow said.