The $1 billion ' cash for clunkers ' program started by government in order to give a push to the stagnant auto sales has almost run out of funds, say officials.
It appears that the program became hugely popular and hence the $1 billion budget was consumed quickly. White House press secretary Robert Gibbs said that they are reviewing the situation. He also mentioned that all the CARS transactions that have taken place till now will be honored.
The program intended to offer old car and truck owners a subsidy of $3,500 or $4,500 toward a new and better ( read fuel efficient ) vehicle. It was passed by the Congress last month and started last Friday amidst heavy publicity by the car manufacturers and dealers.