Cash for Clunkers ends a successful run

Our wildly popular CARS program came to a close last night. I never imagined that in the first four days we’d put a quarter million new fuel-efficient cars on the road. But when the vouchers came pouring in, it was clear that CARS was generating incredible economic activity all across America and we had to keep the program alive.

Thanks to additional funds from Congress, CARS has now taken nearly 700,000 clunkers off the roads and replaced them with more fuel-efficient vehicles. It has stimulated the economy, generated jobs and helped consumers dump their gas-guzzlers. And, it’s taken toxic greenhouse gases out of the air to improve the environment.

Cleveland Plain Dealer: 'Cash for Clunkers' proves a smart stimulus
Bloomberg News: ‘Cash for Clunkers’ Yielded Almost 700,000 Sales

CARS’ economic success has been some of the most heartening news. Both Ford and General Motors have announced production increases for their third and fourth quarters due to heightened demand for fuel-efficient vehicles. Honda is also increasing production at its U.S. plants in East Liberty and Marysville, Ohio and in Lincoln, Alabama.

The program has been a lifeline to auto manufacturers and dealers to be sure. But it’s also had a visible ripple effect through communities and related industries. Because of CARS, scrapyards are selling clunker waterpumps, batteries and other parts. Credit unions and banks are processing thousands of car loans. Repairmen, mechanics and sales staff are picking up additional work. CARS has truly been a winning deal for everyone. 

The verdict is in: CARS has been a bright spot in tough economic times.

Comments

[DBS]

I hope that the Secretary's statement that "The verdict is in: CARS has been a bright spot in tough economic times" is indeed true. However, it would be much easier to verify this statement if the DOT and NHTSA released the full data on both those cars that were traded in and those cars that were purchased under the program. Instead of releasing the data in full, DOT has instead released selected data points to news organizations.

The speed and degree with which DOT has released this data would have been a victory for citizen advocates 20 years ago. With President Obama's laudable commitment to transparency, however, it is no longer sufficient. There is a community of scientists waiting to analyze both the economic and environmental benefits of the CARS program. Secretary Lahood, I call on you to publish the full data set. Let the analysts of the world benefit from the CARS program too!

[Wm E. Osborne]

Building on CARS success, you could consider working with other department heads and congress so every employee, trainee & student would have easy access to transit schedules & ride share matching opportunities.

Best wishes,
Bill Osborne

[DailyFinance]

The C.A.R.S. program has all the hallmarks of a near perfect stimulus program. It incented consumer behaviors that simultaneously helped the environment (removing low MPG/polluting vehicles and replacing them with higher MPG/low emission ones), boosted multiple sectors of the economy, and helped reduce U.S. dependence on oil imports.

At an estimated cost to the 100 million U.S. taxpayers of about $30 apiece it seems a fair bargain. Plus the IRS will see some of that come back in the form of federal tax revenues from car dealers, sales staff, and other jobs saved or boosted.

A suggestion for something ongoing is to allow eco-minded taxpayers to add $10-$100 to their federal tax returns to fund a permanent version of the program to help get remaining clunkers into the scrap-yards and replaced with fuel-efficient, low-emission vehicles. I think people would do that. Taxpayers voting with their dollars for programs that support their personal causes. The concept has been proved with existing IRS form check-box contributions. Let's take it to the next level!

[Ken Smith]

BALONEY!! This does not help the repairmen or mechanics at all!! You sell newer cars then less repairs are neede!! Stop trying to show off so much and fire your speech writer and think fully about what you say before everyone really hears it! God Bless America!Ken Smith

[Michael E. Bailey]

The Cash For Clunkers Program has truly been a great success across the country. I saw the press release earlier today on it and saw that California had more new car sales worth more than any other state in the country. This is very important because alot of the cars would have been bought in Orange County. That means sales tax money coming to Orange County cities, County of Orange, and special districts like Orange County Transportation Authority each time a car is sold. OCTA had a plan that included the potential elimination of entire bus routes including all of those in south Orange County. Now that would seem lesslikely to happen. Best wishes, Michael E. Bailey.

[Heather]

It was a great opportunity for myself, HOWEVER.. My car that i purchased is being held and will not be released until the dealership gets their money, How is that fair to the consumer? I took out a loan with a finace company for the car and can not even have it? If my car breaks down the dealership has informed me that it will be my problem to get it running again... and there is no one to "enforce" the "rules" of the program on these dealerships! ..

[Rent a Private Jet]

I agree that jobs could be lost for those who rely on working on vehicles for a living, however I think this was a great program that took many gas guzzling, high pollution automobiles off the road.

[discount auto parts]

this is a great program! thank you for this post!

[Shawn A.]

I commend Secretary LaHood for taking on two of the biggest problems facing our country today: the struggling economy and also our future environmental security.

CARS is a great example of how we can stimulate the economy without giving money directly to big corporations. The idea of stimulating the consumers instead of the producers is an idea I have confidence in, and wish to see more examples of.

However, I believe that the verdict on whether the CARS program is a complete success should still be out. Germany implemented a similar program, and many people did in fact trade in for new cars. However, even though more people were buying cars, the retail sector took a hit. Therefore, I feel we have to wait and see if the CARS program will in fact negatively affect other sectors before we can definitively call it a success.

Also, even though the CARS program has increase fuel efficiency overall by trading in old ‘clunkers,’ I am not sure this is the best for the American people.

Buying a new car is a big step for some families, and even with the CARS program, the cost may still too great. Compound that with the fact that the engines of these “clunkers” must be destroyed, and because of this lower income families may be denied the opportunity to purchase cheaper used cars.

I believe that we have to address the climate problem in our country; however, I am not convinced that we should do it at the expense of a portion of the American people.

Again, I am impressed with Secretary LaHood’s innovation and drive which was needed to pull off this program, and I am glad to see that he is thinking outside the box on ways to solve our nation’s problems. I just hope that we are combating the problems in a way that most effectively solves the problems while not alienating the American people.

[Cheap Car Insurance News]

Toyota benefited the most from this program since they were the number 1 vehicle purchased in the program. They are technically “American Made” since they’re assembled in the US, but the profits from those vehicles go overseas. Maybe the Federal government should take over the foreign car companies.

[Cheap Insurance Quotes]

They really need to bring the CARS program back. People are losing their jobs left and right and CARS seems to really have a positive effect on the economy when it was in place. Is there something we as citizens can do to convince the government the bring CARS back? I'd be willing to work some phones or some petitions.

[jewelry reviews]

I believe that the verdict on whether the CARS program is a complete success should still be out. Germany implemented a similar program, and many people did in fact trade in for new cars. However, even though more people were buying cars, the retail sector took a hit. Therefore, I feel we have to wait and see if the CARS program will in fact negatively affect other sectors before we can definitively call it a success.

[Unified Messaging]

I disagree. The U.S. and Germany are two completely different countries; what doesn't work for one just might work for the other. I think CARS worked just fine in the U.S. and should be brought back to help grow the U.S. economy. We're lurching back toward recession -- and maybe even depression -- without it.

[cheap car insurance]

The CARS program definitely saved the U.S. from a depression era economy. Bad news is that it put more Americans in deeper debt. So take the good with the bad, not sure what's worse in the long run.

[Chris@Cheap Car Insurance Zone]

Isn't it about time this scheme was brought back? I mean, it worked great and removed a lot of less eco friendly vehicles from the roads.

I think the cut off was for cars made before 2001 and that could only manage less than 18 MPG. + the owner had to have owned it for a full year - I think this is what caused a lot of people problems. Old cars tend to change hands quite frequently.

We had a similar scheme in the UK, it was successful too but it excluded a lot of drivers and vehicles who would have loved to trade in their old car but just didn't qualify.

[cheap auto insurance]

Cash for Clunkers really boosted the sales of vehicles. At the time I felt that this was a wrong move, but it turned out to be a really smart decision. I know a few people who were able to get a new car using this program at the time. Hopefully, we will never get to the point that we need another Cash for Clunkers.

[Thinning Hair Women]

The CARS program is not really good plan for long run. However the benefit of new cars is low pollution so who knows whether it's good program or not

[Massachusetts Auto Insurance]

CARS program will in fact negatively affect other sectors before we can definitively call it a success.

[Free Beat Maker]

Yes I agree that Toyota is probably of the ones that benefited the most from this program and that money go overseas.But hey why not,quality sells and recommends itself,a healthy competition made our economy this strong!