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President Barack Obama signed into law the extension of the "cash for clunkers" program, the White House said Friday.
The U.S. Senate approved the $2 billion extension Thursday in a 60-37 vote, following the House's approval on July 31
The initial $1 billion of funding approved in June for "clunker" business has generated more than $920 million in rebates and more than 220,000 in auto sales.
Supported by the incentive program, U.S. auto sales overall were down about 12 percent in July from a year earlier, but it was their best performance this year.
The program offers consumers a federally backed rebate of up to $4,500 if they trade in old vehicles for new, more fuel efficient ones.
Citing government data, dealers said on Thursday more than $920 million in "clunker" rebates have fueled nearly 220,000 vehicle sales since July 1.
Domestic and overseas manufacturers have so far split the "clunker" market. More fuel efficient passenger cars have outsold sport utilities, pickups and vans.
The administration had warned the "clunker" measure would be suspended if Congress did not approve more money by week's end.
Future demand remains an open question, although Bailey Wood, director of legislative affairs for the National Automobile Dealers Association, said current showroom traffic remains strong with non "clunker" sales up as well.
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