Cash For Clunkers Gets Traded In

The $2 billion put in the tank was enough to get the auto industry to Monday apparently, when the program closes for good.

The Obama administration plans to end the popular $3 billion Cash for Clunkers program on Monday at 8 p.m EDT, the Department of Transportation announced Thursday.

Two congressional officials familiar with the plan say the Transportation Department will wind down the program that offers car buyers rebates of $3,500 or $4,500 for trading in older vehicles for new, more fuel-efficient models. The officials spoke on condition of anonymity because they were not authorized to speak publicly about the plan.

The Obama administration was set to announce details on Thursday.

Meanwhile, the financial arms of several automakers have begun offering help to cash-strapped dealerships, in some cases by floating loans to help cover clunker-related shortfalls.

Department officials met with car dealer trade groups on Wednesday to discuss how the program will eventually end and respond to complaints over a backlog of rebate payments to dealers.

Through early Wednesday, auto dealers have made deals worth $1.81 billion and are on pace to exhaust the program's $3 billion in funds in early September.

The incentives have generated more than 435,000 vehicle sales but dealers want a clear plan on when the rebates will no longer be available so they don't end up on the hook for any of the incentives.

And that's actually a valid argument and always has been, and it's a fair compromise to end the program Monday. There had to be an exit strategy for the plan, and after all, Congress isn't in session to approve more money anyway.

Take the victory and go. Works for me.