The Dernogalizer

August 6, 2009

Cash for Clunkers is Back

Filed under: Energy/Climate,National Politics — Matt Dernoga @ 10:19 pm
Tags: ,

According to the Washington Post, the Senate recently funneled another 2 billion dollars into the cash for clunkers program which as has been noted all over the news, has been very successful at spurring car sales.  When the clunkers program was first announced a couple months ago, I actually liked the concept, but thought the program was poorly designed.  I still think the rebates are too large(which is why it ran out of money so fast), and the incentives could be structured better to increase the motivation for consumers to buy more fuel efficient cars.  However, I have been pleased to see that despite the poor design of the program, the concept was good enough to make it work.  If you look at the top cars purchased, the top 5 are quite fuel efficient.  Although I still think the program could be better designed, I support its continuation.  Excerpts below.

“The government’s “Cash for Clunkers” program won a much-anticipated extension Thursday night as the Senate voted to give an additional $2 billion in funding to the popular initiative aimed at boosting stagnant auto sales.”

“Meanwhile, dealerships said they continued to see interest as the program ends its second week.AutoNation, one of the largest vehicle retailers in the country, said consumer traffic was up 35 percent over this time last year at its 225 dealerships in 15 states.”

“On Wednesday, the Transportation Department put out new figures showing that a total of 184,304 trades had consumed $775.2 million of the $1 billion originally appropriated. The Toyota Corolla is the best-selling new car under the clunker program. The program has been plagued by troubles. Consumers were confused as to which cars qualified while the government changed the rules. Dealers said they have spent hours trying to log on to the government’s Web sites to put in paperwork on the deals they completed. Some dealers said they ran into problems collecting government payments.”

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1 Comment »

  1. Good information…can you please share more?

    Comment by Masrule Hamid — August 7, 2009 @ 4:40 am | Reply


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