Congress Throws $2 Billion More at "Cash for Clunkers"

After the program used up $1 billion in about six days and created all sorts of headaches for car dealers and the government, Congress has thrown another $2 billion at it:

The House raced Friday to pass legislation pouring an additional $2 billion into the popular — but financially strapped — “cash for clunkers” car purchase program.

Rep. Sander Levin, D-Mich., revealed the floor plan after he and other lawmakers were assured by Transportation Secretary Ray LaHood that the program would continue at least through Friday while the Obama administration looked for more money.

Democrats in both the House and Senate were exploring the possibility of votes as early as Friday to replenish the funding.

At the White House, press secretary Robert Gibbs sought to assure consumers that the program is still running and will be alive “this weekend.”

“If you were planning on going to buy a car this weekend, using this program, this program continues to run,” Gibbs told reporters.

He would not commit to any timeframe beyond that.

One thing that hasn't really been discussed much is the impact this program will have on the used car market, especially when it comes to lower priced older cars. The program requires cars traded in to be destroyed and not resold. That's going to make for fewer older cars available on the market for someone who can't afford a new ride or needs to add a car to a household.

There are always unintended consequences in these things, and when people start complaining that the price of used vehicles has risen to a point where poor people can't afford them, what will Congress do then?