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Originally published Tuesday, August 4, 2009 at 12:00 AM

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Q&A | Can you still take part in 'cash for clunkers'?

While the Senate haggles over whether to extend the "cash for clunkers" program, here are questions and answers about what you should know...

The Associated Press

WASHINGTON — While the Senate haggles over whether to extend the "cash for clunkers" program, here are questions and answers about what you should know if you still want to buy a car under the program:

Q: Is "cash for clunkers" still on? Can I still qualify?

A: According to the government, yes. But for how long remains unclear.

The Obama administration says sales made under the deal are covered for now, but the government is waiting to see what Congress does before making concrete promises. If the Senate doesn't agree to provide additional funding by Friday, the program probably will end.

Q: What will happen when I go to the dealer? Are they still offering the deals?

A: Some dealers stopped making clunker deals Monday, fearing they could lose money. Under the program, dealers take the value of the rebates — $3,500 to $4,500 — off the price of the car. The government then reimburses them for that amount. As a buyer, you don't have to do anything. The risk is on the dealer.

Many were offering the deals Monday but said they're not sure about the rest of the week. Others were making only verbal deals that would go through if more money comes into the program. Some were telling buyers they'll have to bring their new cars back or pay back the rebate if their applications are rejected when submitted to the government. And some dealers were holding off on sending trade-ins to be scrapped, just in case the deals don't work out.

Q: Will I still be able to find the car I want and get the credit?

A: Dealers say their inventories are running low because of high demand under the program. A dealer usually can find you a car if the cars on the lot don't fit your tastes. But with so much uncertainty over how long this will last, some dealers are saying they may not be able to fulfill specific buyer wishes, such as color and interior, and still offer the credit.

Q: What are the chances the program will be extended the way it is now?

A: The House version for the most part would just add new money. But the Senate may tinker with the program, such as raising the fuel-economy requirements for cars to qualify for the rebates. Of course, any Senate changes to the bill would require the House to take up the issue again — and they went out on summer recess last week, with no plans to return until September.

Copyright © 2009 The Seattle Times Company

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