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Yes, it can. Many people have been holding off on buying new cars because of the possibility of the manufacturer going under. This is a little more incentive. The program will also help auto makers stay afloat by helping them to move vehicles. Those newer vehicles will generally be more feul efficient and less poluting than the older "clunkers," so gas milage and the environment both win. While no doubt there are many who drive older cars and cannot afford another payment, gov't help or no, there are many that can benefit from the program.
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