(Source: AP via NPR)

President Barack Obama signed into law a $2 billion extension for the popular “cash for clunkers” program Friday morning.

The Senate voted to refill the popular car incentive program Thursday, tripling the $1 billion fund that has led to big crowds at once deserted auto showrooms. President Obama signed the bill Friday, extending the program into Labor Day and preventing the 2-week-old incentives from running out.

Car shoppers caught up in the frenzy of the program will have more time now and a $2 billion reason to trade in their old gas guzzlers.

The program gives new-car buyers up to $4,500 toward their purchase if they trade in a less fuel-efficient car or truck. So far, 8 in 10 of the vehicles traded in have been trucks. The three Detroit automakers’ nameplates have accounted for 45 percent of the new-car sales.

Auto industry analyst Aaron Bragman of IHS Global Insight said it was unlikely that demand will remain as high as it is now. Many people who qualified have already bought cars and while the rebates are expected to boost total vehicle sales in 2009, Bragman predicted lower sales next year because many customers have already taken advantage of the incentives.

“You are not going to see a continuation of the frenzied sales pace,” Bragman said. “I don’t think they will use up that money any time soon.”

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