Obama Signs Cash for Clunkers Extension into Law.

President Barack Obama signed a new bill on Friday that will keep the very popular “Cash for Clunkers” program going.

Both the Senate and the President acted quickly so that the extension, which provides for another $2 billion in funding for the program, could be signed into law before the August recess begins. The House had already voted by a comfortable margin to extend the program last week.

So far the “Cash for Clunkers” program has been far more successful than perhaps anyone had imagined it might be. Since first being enacted in July the original $1 billion in funding is already gone.

Under the terms of the scheme, those purchasing a new, fuel efficient car after July 1^st 2009 are eligible for refund vouchers of either $3,500 or $4,500 if they trade in an old gas guzzler. In order to be considered the trade in vehicle has to have a combined city and highway fuel economy rating of 18 m.p.g or less.

Many of the people who have taken advantage of the “Cash For Clunkers” program describe themselves as “fence sitters”. They had been considering trading in their old cars for a new upgrade and for many taking advantage of the savings offered by the program pushed them onto the car lots.

To obtain the credit buyers must purchase a new car that has a fuel economy rating of at least 22 m.p.g. and although the program was designed in part to aid the ailing American car industry, foreign cars are eligible for the program as well.

But what cars are people buying when they take advantage of the Cash for Clunkers program? According to government data the big winners have been compact and hybrid cars, which are exactly what the Obama government hoped, would be the case.

Coming in at number one is the Ford Focus, a compact model that gets a very respectable 27-28 combined highway/city fuel economy rating. The highest ranking hybrid car is the Honda Civic which places third on the list. The Toyota Prius, another hybrid, which can achieve an astonishing 46 m.p.g. is fourth.

Although the program is so successful, this is likely to be the last time it will be extended. According to Michigan Democratic Senator Carl Levin getting enough votes to extend the program this time was a hard task, and he does not believe that Congress will be willing to extend it again.