Cash for Clunkers Working

Tuesday, August 11, 2009

The Cash for Clunkers program has had rapid initial success. The program offers $4,500 rebates to consumers exchanging low fuel economy cars for more efficient ones. After running out of money in 4 days, the government decided to increase funding to the plan with another $2 billion. Perhaps finally the government has found a plan that will actually provide stimulus to the economy as well as increase engine efficiency. A stimulus plan that stimulates...brilliant!

Most consumers are choosing to turn in their old trucks and SUV and opt for smaller, efficient cars. It seems consumers are realizing the nonsense of driving SUVs with poor gas mileage when family size does not dictate the need.
Top 10 Trade Ins: Top 10 New Purchases:
Ford Winstar Toyota Corolla
Chevrolet C1500 2WD Ford Focus
Ford F-150 4WD Honda Civic
Chevrolet Blazer 4WD Toyota Prius
Ford Explorer 2WD Toyota Camry
Dodge Grade Caravan 2WD Hyundai Elantra
Jeep Grand Cherokee 4WD Ford Escape
Jeep Grand Cherokee 4WD Dodge Caliber
Ford F-150 2WD Honda Fit
Ford Explorer 4WD Chevrolet Cobalt

So far 125,198 trucks and SUVs have been exchanged along with 24,903 passengar cars. In exchange, consumers have purchased 61,287 trucks and SUVs, and 88,814 passenger cars. According to the Department of Transportation numbers, this shows a 61% increase in fuel economy. This is nice to see as we battle the global pollution problem.


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