Cash for Clunkers Generated 700,000 Car Sales

By the time it ended, the Cash for Clunkers program resulted in the replacement of nearly 700,000 clunkers with more fuel-efficient vehicles. The program generated $2.877 billion worth of rebate applications from U.S. auto dealers, according to the Department of Transportation (DOT).

The Ford Focus, Toyota Corolla and Honda Civic were some of the most-purchased new vehicles during the Cash for Clunkers run.

“American consumers and workers were the clear winners thanks to the cash for clunkers program,” said U.S. Transportation Secretary Ray LaHood in a press release. “Manufacturing plants have added shifts and recalled workers. Moribund showrooms were brought back to life and consumers bought fuel efficient cars that will save them money and improve the environment.”

Ford, General Motors and Honda all reported that they had ramped-up production in their U.S. assembly plants in order to meet the demand for new vehicles generated by Cash for Clunkers.

Among consumers participating in Cash for Clunkers, 84 percent of traded in trucks and 59 percent purchased passenger cars. The average fuel economy of the vehicles traded in was 15.8 miles per gallon and the average fuel economy of vehicles purchased is 24.9 mpg. -- a 58 percent improvement.

Auto dealers still on the hook awaiting their Cash for Clunkers rebate money will be glad to learn that the DOT is increasing its existing staff of 2,000 employees working to process the backlog of rebate applications.

“This is a win for the economy, a win for the environment and a win for American consumers,” DOT Secretary LaHood said.

Also See:
What Happens to Cash for Clunker Trade-ins?
Drawbacks of the Cash for Clunkers Program (Environment)

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