Cash for Clunkers vote set for Thursday

The Senate is expected to vote Thursday on a $2 billion extension of the popular Cash for Clunkers program, as lawmakers rush to finish business before their August recess.

The House voted to extend the program, which blew through its $1 billion in initial funding, before it adjourned for the summer last Friday.

Now the Senate must agree to make the additional money available so that President Obama can sign the extension into law.

Debate on the bill is expected to begin after the Senate's confirmation vote on the Supreme Court nomination of Judge Sonia Sotomayor.

Senate Majority Leader Harry Reid of Nevada indicated that an agreement had been reached with Senate Republicans and that a vote is expected Thursday.

"We'll pass Cash for Clunkers ... before we leave here" for the August break, Reid told journalists Tuesday.
0:00 /5:09Against Cash for Clunkers

Sen. John Thune of South Dakota, the third-ranking Republican, said he expects all Senate Democrats and several Republicans to vote for additional funding.

"In the end, we know where the numbers are," said Thune, who opposes the program.

Senate Minority Leader Mitch McConnell of Kentucky said the Senate would vote on the measure before going on holiday, but wouldn't guess about the outcome.
How it's going

Under the Clunkers program as enacted, vehicles purchased after July 1 are eligible for refund vouchers worth $3,500 to $4,500 on traded-in gas guzzlers. The trade-in vehicle has to get a combined city and highway fuel economy rating of 18 miles per gallon or less.

According to government figures, compact cars and hybrids have been the top sellers so far.

The top-selling car was the Ford Focus, and the top three -- including the Honda Civic and Toyota Corolla -- were compacts. The list also includes three vehicles that are available as hybrids. One, the Ford Escape, is a small crossover SUV also available as a hybrid.

The sales results indicate that consumers are buying more fuel-efficient vehicles than most people expected. The average combined city and highway fuel economy of the 10 cars ranges from at 27 to 33 miles per gallon, depending on which versions people choose.

While critics had feared that car shoppers would use the program mostly to buy trucks, in fact 83% of the vehicles traded in have been trucks and SUVs while 60% of vehicles purchased were passenger cars, according to Secretary of Transportation Ray LaHood.

The broad category of SUVs includes many small car-like crossover SUVs, including the Escape.

Last month, many of the vehicles with the biggest reported year-over-year sales gains were small crossovers, a fact that several of the top automakers attributed to the Cash for Clunkers program.

The average fuel economy of new vehicles being purchased under Cash for Clunkers is 25.4 mpg, LaHood said, and the average fuel economy increase from the old vehicle to the new is about 61%.