DOT kicks-off CARS, a win-win-win opportunity

Today, we kicked-off our Car Allowance Rebate System (CARS) on the plaza at DOT headquarters. We’re very excited about the tremendous interest this program has generated and of the great job NHTSA is doing getting the program up and running.

I was joined by Rep. John Dingell, Sen. Carl Levin, and Rep. Sander Levin--all of Michigan--and Rep. Betty Sutton of Ohio as well as several folks from auto dealer associations. We also had on hand two fellows, John Bailey and John Mackereth, who have already taken advantage of CARS to trade-in their older gas-guzzlers for more fuel-efficient models.

The CARS program does three things:

1. It helps struggling consumers to buy reliable vehicles they can depend on to get to work – while lowering their costs on gas and maintenance;
2. It helps community dealerships – which are small businesses, after all – to weather the bad economy; and
3. It helps to lower CO-2 emissions and reduce fuel consumption because any new vehicle purchased through this program must be more fuel-efficient than the one that’s traded in.

We think the CARS program is going to help put about 250,000 newer, more fuel-efficient cars and trucks on the road.

So far, nearly 16,000 dealers around the country have submitted applications to participate. We’ve received more than 45,000 calls. And our website, www.cars.gov, has already received 1.5 million hits!

That’s good news for the environment, for the economy, and for consumers’ wallets.

Consumers can trade in cars or light trucks at participating dealers and receive a rebate of $3,500 to $4500 toward a new vehicle.

To be eligible, your old car must be from 1984 or older. And it must get 18 miles to the gallon, or worse.

The Department of Transportation will reimburse dealers for the rebates, using $1 billion Congress allocated for the program.

Now we don’t want anybody trying to take advantage of consumers by offering phony deals. So here’s what you should know:

• The CARS.GOV website is the only official website for this program.
• Consumers should not respond to rebate offers from any other sources, including phone calls or other websites.
• Consumers should never share any personal information, like social security numbers, unless they’re sure they’re dealing with a legitimate business.
• We encourage everyone to learn more about the program, and whether it’s right for them, by going to our website.

We know times are tough. So, it makes sense to be open to all kinds of new ideas to help our economy grow.

The CARS program is a great opportunity for consumers, and it boosts the economy while it brings us closer to our goals for reducing our dependence on oil and cutting back on harmful greenhouse gas emissions.

That's a win-win-win situation.

Comments

[m]

Trying to improve the economy is of course a pretty important thing right now, but this program seems to take a very odd approach. What it does is reward the people that bought the gas guzzlers in the first place by giving them money off a new car. Those of us that have been driving fuel efficient vehicles for decades aren't given any help for buying another fuel efficient vehicle.

And I'm very curious about how much work was done to determine the net effect of this program on CO2 emissions. As I understand it, cars turned in are required to be crushed. (This is of course a huge waste of parts that could really benefit the low income segment.) Sure, each new car that comes from the program will put out a little less bad stuff than the old car it replaces. But when you compare the emissions created during the manufacture and shipment of the new car, plus the crushing and disposing of the old car, how many miles worth of driving a slightly less polluting car is required to make it up? Is there somewhere we can see this information?

[Sulumits Retsambew]

Really helpful info. Thanks for shared.

[Paul Graziano]

I'm sorry Mr LaHood, but I am personally a bit dissapointed in the new CARS program (aka Cash For Clunkers). I'll have to keep driving my 1988 Volvo 240 a while longer. With nearly 200K miles on it, it's burning a bit of oil (not good for the environment), it lacks modern safety features such as air bags or ABS brakes, and by CARS standards, it's rating of 19mpg is good enough. I was considering trading it in on a new car that gets 30mpg+, like the Chevy Cobalt or the Saturn Astra, but given the current economy, the threat of layoffs looming over my family, and the lack of any CARS incentive, the old Volvo will have to stay on the road.

However, it's not all bad. My mechanic looks at this as his own economic stimulus plan. :-)

The CARS program is a good start. But I hope in the future it can be improved...

[mcas]

With the majority of energy usage spent in the CREATION of a new vehicle rather than tailpipe emissions-- isn't this the exact WRONG WAY to protect the environment?

[Latest News On American Automotive Industry]

It's really hurdle information about old cars. And I am really thankful for it.

Pintu

[rotem]

Its sounds like this is the wrong way to protect environment but i hope i am wrong.

[Bob]

I would really like to also see so someone break down the adminsitrative cost of this progam.
Yeah I know it will be one of the most efficient ever - but how about seeing what the Website costs to develop for instance.
What company won the bid for the administration of this program?
When will the project be terminated - or gee can they find a way to have it go on and on....

[Al]

Please STOP funding for cash for clunkers (CARS).
Though I am a full supporter of
1- economic stimulus (if there is a payback)
2- environmental consciousness (if there is a good cost benefit)
3- support of industry (if it is sustainable)
4- support of consumers (if it is sustainable)

Cash for Clunkers (CARS) meets none of the above criterion.
It is a simple government give-away.
Who will pay?
Those who should pay like Automakers, Car buyers, Car drivers?
One penny had better not come from anyone who already drives an environmentally conscious automobile or who does not drive at all.
And while we are on the topic - why no (infinitely more reasonable) big funds for mass transit in major metro areas? (where density gives the best ROI).

[sulumits retsambew]

Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts.

[ben]

In my opinion the new CARS program is bad..thanks for the post

[Dennis]

There is a serious mistake on the Cash for Clunkers website. They claim my full size truck is getting 19 mpg. I have a 1985 ford f-150 4.9 2wd. They list a 3 speed manual and a 4 speed manual transmission. Ford made two 4 speeds!! One, witch I have, is a 4 speed with what's called a "granny gear". It's very low and is rarely used. The other has an overdrive that increases your millage slighty. The window sticker on my truck when In bought it new stated 15 city and 17 hwy. I have never received over 16 mpg. Even the new Ford's only get 17 mpg. When I went to trade it in they said that I do not qualify. "That is wrong"! 19 mpg is impossible!! I have called them and they said they would return my call, but never did. I emailed them July 25 and again on the 3ed. Could tell me what to do or look into this matter right away before I miss out? You even list the 1984 as receiving 18 mpg when both years are the same inch by inch! No changes between the years! They are both carborated! Call Ford and get your info correct!

[OC Webdesign]

I really want my next car to run on something besides a petroleum byproduct. I am hopeful that with all we have been able to train electrons to do for us, that electricity will be the answer. I think what we need is a radical new way to store and transport electrical power to the point where we need to utilize it.
Instead of encouraging the purchase of new vehicles that will consume fossil fuel, why not encourage the purchase of at least hybrid vehicles. Then encourage industry to develop a better storage cell.

Sincerely,
The Boys at White Ink Studio

[cars]

For me, any program that cutting back on harmful greenhouse gas emissions should be supported for the bad climate these years.

[Jane Massage]

It is really really good. I cannot wait for solar or cars on bio-energy. One big step ahead would be if a robot would drive a car instead of human. There is need much improvement to do that but it is future. But we already have reliable laser unit measures distance as well as speed and neural networks responsible for all decisions.

I realise there is a lot to do but it is a must.

Another thing i would recommend is use of tire or something like that on the surface of the cars. This would really good job to prevent harm in crashes because these kinds of materials will be lessened the force at the time of the crash ten fold even such car would cost 2-3% more.