(Source: AP via Yahoo & New York Times)

The Senate will vote to extend the popular “cash-for-clunkers” program before going home on Friday, Majority Leader Harry Reid declared Tuesday in a strong signal the government won’t let the trade-in rebates die under the surging demand that has almost exhausted federal backing.

Images via Apture

Reid’s GOP counterpart, Mitch McConnell of Kentucky, predicted his party would not block a vote and “the matter will be completed.” Republicans were still demanding a chance to amend a House-passed version that would extend the program into September, but Democrats were confident the bill wouldn’t be changed.

“There obviously is a real pent-up demand in America,” the Transportation secretary, Ray LaHood, said. “People love to buy cars, and we’ve given them the incentive to do that. I think the last thing that any politician wants to do is cut off the opportunity for somebody who’s going to be able to get a rebate from the government to buy a new automobile.”

Visiting the White House for a lunch with the President, Harry Reid, the Senate majority leader, was also asked about the program.

“We’ll pass ‘cash for clunkers,’ ” he said. And Mitch McConnell, Republican of Kentucky, who is the minority leader, said there would be a vote, but he did not suggest an outcome.  Opposition to extending the program has been dissipating. One vocal GOP critic, South Carolina Sen. Jim DeMint, said Tuesday he would not try to block the legislation. And three lawmakers who wanted the program limited to the purchase of even more fuel-efficient vehicles said Monday they would back the plan.

Republicans have said it puts the government in the bad position of picking winners and losers.

“People want to know what’s going to be next. Cash for shoes? Cash for groceries?” said Sen. Richard Shelby, R-Ala.

The first $1 billion in funding is expected to lead to sales of 250,000 vehicles and the additional $2 billion would generate sales of perhaps a half-million more vehicles.  The program has encouraged about a quarter-million Americans to buy new cars at time when the economy is still in recession and badly needs a boost.

Buyers of new cars and trucks have swamped formerly deserted auto dealers to claim their rebates — up to $4,500 when they trade in older models that get significantly worse gas mileage. The older vehicles are then scrapped.

Because the House has already recessed for August, any change by the Senate would effectively interrupt the rebate program until Congress returns in September. Consumers who don’t get in on a deal this week would have to wait until then to take advantage of the rebates, assuming eventual passage.

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