Was the Cash for Clunkers Program Really a Success?
Cash for Clunkers, formally known as the Car Allowance Rebate System (CARS), was a $3 billion government program introduced in 2009 as a way to induce American car-buying consumers to trade their gas-guzzling cars in for more economical models. Specifically, consumers were given as much as $4,500 each to trade in their fuel-inefficient model for a non-guzzler.
When originally signed into effect in January 2009, Cash for Clunkers was to start on July 1 with $1 billion in funds available. At that time, it was a welcome relief for most dealers, who were suffering the effects of the economic downturn in a big way. How bad was it? June 2009’s sales were down 28 percent from the previous year – and that was the best month of the year up to that point. Read More