The Cash for Clunkers was a program initiated by Obama in 2009. It was an auto-in-trade program with the help of which you can easily trade your old car for a new one. There are some facts that you need to know Cash for Clunkers to be more clear on the concept.
What does a Clunker refer to?
It is a driveable car that was manufactured within the last 25 years. The fuel economy rating of the car should not be more than 18 mpg. You can refer to the website of the Car Allowance Rebate System to know the combined fuel-economy for city/highway of your vehicle.
How did the program work?
An old was traded for cash so that the owner can buy a new one that has modernized features and is more efficient. The more mileage you choose in your new car, it will cost you more money. According to the program, your new car must have a minimum combined fuel economy of 22 mpg.
- Funds for the program were collected from TARP and the total cost of the program was around $4billion.
- There was an idea behind this program to do environmental good by taking apart vehicles that were old and inefficient from the road. However, the program was opposed by environmentalists, as they reported that the program pulled off functioning cars and was not allowed to go further even if they were efficient enough.
- The economic incentive behind this program was to increase auto sales. As it was observed that similar programs in other countries have risen auto sales by 25%-40% in Germany, 8% in France and almost 15% in China.
- Though the program was not designed according to the environmentalists, it was still considered to have green benefits. The program had a positive effect to further advance on fuel-efficiency of the vehicles. Hybrids sold but not to the 99% of the population.
- The cash for clunkers program was believed to have an impact on the Hispanic Community. A reason why it got celebrity endorsement from Ugly Betty’s Angelica Vale, Dancing with the Stars, Cristian De La Fuente.
- The buyers should be aware of. They should not trade their car for the value unless it is less than or equal to what you’d get in the Cash for Clunkers program. A list of cars was identified by Edmunds the cost of which was guaranteed to be worth less than the value of the voucher. Well, a lot of consumers reported that the Cash for Clunkers program was not a great deal. Though if customers are planning to buy a new car, they can still save some money. But, while buying a used car, there are no savings.
The program failed, but according to the reports, Cash for Clunkers successfully pulled more than 7,00,000 cars out of the circulation on roads. Moreover, around $45000 were offered for the clunkers. It provided an incentive to people so that they can effectively exchange their old cars for new ones. Do you want to sell your junk car? So what, if the program failed. Reach out to Cash Cars Buyer and sell your junk car to us. Get an offer from them by visiting www.cashcarsbuyer.com.