About The Cars Program
Simply put, the CARS program was a billion-dollar incentive for drivers across the nation to scrap their junk cars and purchase new, more fuel-efficient vehicles. The primary goals of the program was to:
- Get environmentally unfriendly cars off the road.
- Boost the economy by promoting car sales.
Once the vehicle met the eligibility requirements, the vehicle was surrendered for scrap and the dealer submitted an application for credit at the time of the new vehicle purchase. The dealer would disclose an estimate of the scrap value, and that estimate was in addition to any rebateNOT in place of a rebate.
Requirements For Cash For Clunkers
The program began in July of 2009. To qualify for the credit, a traded-in used car had to meet the following criteria:
- Be less than 25 years old
- Have an EPA-rated fuel efficiency of less than 18 miles per gallon
- Be in drivable condition
The traded-in vehicle was required to be scrapped, have the engine rendered unusable, and have its body crushed or shredded.
In addition, the new car being purchased had to have an EPA-rated fuel efficiency of more than 22 miles per gallon. The program ended Aug. 24, 2009.
The rules for trucks were more complicated.
Light- and standard-duty model trucks, including SUVs, vans, and pickup trucks had the following parameters:
- The new truck must have a fuel-efficiency mileage rating of 18 mpg or more.
- The new truck must have at least a two mpg higher rating to qualify for the $3,500 coupon or at least five mpg higher for the $4,500 credit.
For heavy-duty trucks:
- The new truck must have a rating of 15 mpg or more.
- The new truck must have at least one mpg higher rating to get the $3,500 coupon and at least two mpg higher to qualify for the $4,500 credit payment.
How Much Did Cash For Clunkers Pay
Edmund’s report said the clunkers program saved taxpayers $24,000 per car sold, nearly 60,000 cars were shipped and only 150,000 were incremental. Edmunds CEO said the automotive business wouldn’t be booming without clunkers program. According to Investopedia, the value for the vehicles was between $3,500 and $4,500 toward a new car. The car allowance rebate system was a success but short lived. The cash for clunkers program ran for about a year and a half and basically helped poverty level people buy newer vehicles.
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Understanding Cash For Clunkers
The Car Allowance Rebate System was signed into law by President Obama in June 2009 with mostly bipartisan support in Congress. The law was administered by the National Highway Traffic Safety Administration . Car dealers submitted the required information to the NHTSA on behalf of qualified new car buyers.
The formal name for the program was the Car Allowance Rebate System . The CARS program gave people who qualified a credit of up to $4,500, depending on the vehicle purchased.
How Will The Government Protect Against Fraud
The National Highway Traffic Safety Administration is in charge of the program and will make an announcement regarding full qualifications within 30 days of the bill being passed. The NHTSA needs the time to work out the details to prevent fraud and ensure appropriate measures are taken to properly dispose of old vehicles.
Right now, the government is looking at methods to verify cars have been continuously registered and insured by the owner for the previous year and determining ways to ensure the cars that are traded in are sent to the junkyard and destroyed instead of being used or resold. Consumers should also be aware of Cash For Clunkers scams.
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Will Cash For Clunkers Return
As new vehicle sales plummet, is it time again for Cash for Clunkers? The prospect of such a program to jumpstart retail sales with government incentives moves to the front burner in some quarters. Just over a decade ago, the federal government gave cash vouchers to owners with old cars if theyd scrap them in favor of a new vehicle.
Common Arguments Against Cash For Clunkers
The government was essentially giving free money to businesses that were just going to turn around and buy new stuff. The taxpayer was footing a lot of their bill. It could have cost more than it saved.
People were not really trading in their old cars for new ones like they thought they would, so maybe it was not working? This raised more questions than it did answers.
What exactly did you need to get approved for cash for clunkers? What were some problems with people being able to game your system by faking pre-existing issues with their vehicles?
The program likely saved money at taxpayers’ expense if consumers chose to buy more expensive vehicles. As well as placing additional strain on America’s already fragile energy supply. This is because it encouraged people to drive more.
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Which Cars Qualified For This Program
On the first day of the Cash for Clunkers program, dealers all around the country received the rules of the program. The clunker needed to:
- Be continuously insured and registered to the consumer for one year
- Have a fuel economy of less than 18 mpg
Also, the retail price of the new vehicle couldnt exceed $45,000.
Where’s The Best Place To Get Cash For My Vehicle
Founded in 2010, Cash for Clunkers.com has spent years becoming one of the most reputable and well-known junk car buyers in the industry, which means you can rely on us to give you the best price for your vehicle. With a dedicated and experienced team, Cash for Clunkers.com not only offers the best in terms of price, but in terms of service. We specialize in cash for clunkers, also known today as cash for cars or cash for junk cars. Cash for clunkers was the original U.S. government program that provided financial incentives to car owners to trade in their old, less fuel-efficient vehicles and buy more fuel-efficient vehicles. The clunkers program ended in 20o9 and slowed down the growth of the auto industry. But the vehicles purchased through the program were required to be destroyed.
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Private Cash For Clunkers Incentive Programs
Many individuals prefer this current program since the guidelines are not as strict as the government program, and the qualifications are easier to meet.
There could be several reasons why the Cash for Clunkers program will suit your needs. These instances could include:
- Continuous repairs or maintenance adding up to more than the vehicle is worth
- Your current vehicle has failed the emissions test
- Do not have the time or energy to try and sell your old car privately
There are several benefits to using Cash for Clunkers. If you have a vehicle that you need to sell, this incentive plan could be the best fit for you. Some of the attributes include:
- Vehicles can be in any condition, running or not
- Local buyers will come tow your vehicle away for you
- Stress-free way to sell your vehicle
- If you are missing paperwork, you can still sell your vehicle
How to Use the Private Cash for Clunkers Program
The process for the current Cash for Clunkers incentive program is easy. Individuals can call them directly or fill out an online form. From here, you will be in contact with a representative who will ask you questions about your vehicle.
Once they determine a fair value from your answers and you agree with their proposal value, they will arrange a convenient date and time to come to pick up your vehicle and give you cash on the spot.
How Poor School And College Student Can Get A Free Car
Nowadays it is essential for all the students to have fastest means of transportation and better drive way to go to schools and colleges, especially poor students in rural areas, backward class students facing lot of trouble going to school because of lack of good transportation. Even poor students require free cars from government just like others. Poor Students who live away from the urban areas do not have sufficient income to afford a car on their own are definitely eligible to receive free cars from government assistance. To help poor students government has introduced free cars giveaway programs to help students with best initiatives. Children who live in orphanages shall also require the same benefits what others have access to and these free cars government grants offers them enough relief from facing transportation problems.
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Remember Cash For Clunkers Here’s What Happened To It
If you were around in 2009, you may have noticed oodles of Cash for Clunkers advertisements. That program was the brainchild of these government programs:
- US Environmental Protection Agency
- Department of Transportation’s
The goal of the program was to increase fuel efficiency by replacing 10+ year old cars with new vehicles. In order for someone to receive the benefits from the program, they needed to trade in their old vehicle at a dealership. This was the EPAs and DOTs attempt to stimulate the struggling U.S. economy and to improve the environment.
The Cash for Clunkers program was supposed to be a win-win situation for the economy and the environment. How did it turn out? Did the program meet everyones expectations? Lets find out!
The Execution Of This Program Wasnt That Great
Cash for Clunkers was a great idea. Consumers loved it. Yet, the behind the scenes operation of this program left much to be desired.
On the first weekend of this program, dealerships saw a 20% 30% increase in new car sales. But, as they went in to submit the information required to get the refund, they found the website constantly down. It was due to the overload of people using the website.
Many dealerships waited weeks to be paid by the government. Its because the National Highway Traffic Safety Administration couldnt keep up with all the claims that came in. They had to hire more staff to process claims. They ended up paying out all the claims. But it was quite hairy for a while right in the middle of the programs tenure.
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How Did Cash For Clunkers Help The Auto Industry
The Cash for Clunkers program was beneficial to both sides of the marketplace. It helped consumers who were seeking to upgrade their vehicles and it also helped car manufacturers who could sell those used cars as a result of Cash for Clunkers.
Consumers went looking for specific vehicles that they wanted, while manufacturers were able to gain some much-needed revenue as well. Essentially, everyone involved benefited from Cash for Clunkers.
When cash for clunkers ended in August 2010, there were over 700,000 applicants who had qualified for an additional $1 billion worth of vouchers.
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Would Cash For Clunkers Work Today
Because of covid-19, all industries are suffering right now, except for maybe toilet paper. A new Cash for Clunkers program could drive about $50 billion in sales for the car industry. But to avoid mistakes from the past, a few changes would have to be made.
Although the environmental focus was a source of problems in the past, it should continue to be a key point of the program. This provides a moral justification for bailing out the auto industry. Some smart moves could be increasing the fuel efficiency cap, and perhaps emphasizing safety features like advanced driver assistance.
Including patriotic benefits would also appeal to the crowd who dont care about the environment by focusing on helping out American industries. Requirements like ensuring the program would only apply to cars made in the US could help in that regard. Car manufacturers that are struggling to create expensive safety and environmental features will get a boost and keep the models that offer them stable.
A second Cash for Clunkers program could work in our current scenario if some changes were made. Even politicians in Germany are considering similar plans, so the concept does not just apply to us. Whatever the case, get ready because we soon might be getting incentives from the government to buy new cars.
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Exotic Cars Under The Program
Jalopnik reviewed the lists published by the NHTSA and found numerous cars crushed under the program that had book values far exceeding the rebates offered by the government. Among some of the cars whose book value was worth more than government rebates included models ranging from the GMC Typhoon to the Bentley Continental R. However, a further review noted that many cars that were thought of as being crushed under the program were improperly recorded and/or swapped for other car models or trims. Some exotic/collectible vehicles were scrapped under the program included a Maserati Biturbo with 18,140 miles, a GMC Syclone, which was removed from scrappage in the program by a group of car enthusiasts a GMC Typhoon, an Isuzu Vehicross, a La ForzaSUV, a TVR 280i, and various Ford Mustang, Ford Taurus SHO, Chevrolet Camaro, and Chevrolet Corvette models, among other cars.
Ford Wants Government To Sponsor Cash
News report says Ford wants a stimulus program to get people shopping and alleviate a drop in sales amid the pandemic.
- Ford is looking to ask for a U.S. government stimulus program to fight back against loss of sales due to the COVID-19 pandemic, Bloombergis reporting.
- The news service quoted Ford marketing VP Mark LaNeve as saying Ford wants “some level of stimulus,” which could mean a cash-for-clunkers-type plan like the one used in 2009.
- Ford hasn’t opened talks with the feds yet, the news service says, though it is reportedly looking to do so soon.
Ford Motor Company is planning to convince the U.S. government to get another “cash for clunkers”-like stimulus program rolling to fight back against loss of sales due to the coronavirus crisis, Bloombergreports, citing Ford’s Mark LaNeve.
As of now, the discussion is happening at Ford internally, the news service said, but Ford reportedly wants to get the government involved soon so that automakers can bounce back after reporting the lowest sales in almost a decade. LaNeve, Fords vice president of U.S. marketing, sales, and service, told Bloomberg that the company is in discussions about what would be the most appropriate.
A Ford spokesperson contacted by Car and Driver, while stopping short of naming a specific type of program, said the automaker is “encouraging Congress to look at a variety of ways to drive job creation, increase demand, support customers, and provide long-term stability for the entire auto ecosystem.”
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What Is A Clunker Car
A clunker is a common phrase for an old, worn-down vehicle. Originally popularized in the 1930s to refer to old equipment, it became widely associated with older vehicles specifically in the following decades.
The Cash For Clunkers government program specifically defined clunker as a drivable vehicle, less than 25 years of age, with a fuel efficiency of less than 18 mpg.
The program was a runaway success in some areas originally provided $1 billion in funding, Congress quickly needed to increase the budget by an additional $2 billion due to overwhelming demand.
However, in other ways, the clunker trade-in program ended up being a disappointment: evidence suggests the auto industry was ultimately harmed by the program, which caused a brief surge in car purchases in the short term but lowered them in the long term.
Additionally, some studies suggest the car purchases that did take place were cheaper than they would have been without the car buy back program, with people incentivized to spend only the available cash they received for their old vehicles, rather than what they typically would have budgeted for a new car.
The federal junk car program came to an end in Nov. 2009 after enabling the sale of nearly 700,000 vehicles.
How Much Does Cash For Clunkers Pay
If your car is eligible for the program, you can get cash for your scrap car. But how much? It depends on your income level.
The base amount for the Cash for Clunkers 2022 program is $1,000. Youll get at least $1,000 for your old car if it meets eligibility criteria. But if your income level is below a certain threshold 225 percent of the poverty level then you could get even more for it. For people whose income is below the threshold, $1,500 is how much youll get for your car.
Keep in mind that when the money runs out, Cash for Clunkers stops. That means your car might qualify but you dont get any cash because the funds coffers are empty.
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What Were Some Of The Problems With Cash For Clunkers
The government’s program for purchasing cars with gas guzzlers and offering incentives to trade them in for more fuel-efficient models has been touted as an effective way to get consumers into new, more efficient vehicles.
But many of those who have taken advantage of Cash for Clunkers say they’ve faced some major problems. Complaints about C4C have begun cropping up online and some analysts worry that once people begin seeing its flaws, consumer interest in participating will decline quickly.
Here are some of the common complaints about Cash for Clunkers. The first was if you did not make it easy enough to find a dealer who wanted your clunker, you were unfortunate. The second one was if dealers would not take your clunker off your hands because it did not run or drive too badly or for any other reason, you’re sadly out of luck.
To many Cash for Clunkers was a rip-off in general because there was almost no incentive at all. This was aside from a $3k voucher to buy anything but the cheapest piece of crap on a dealer lot. Which most dealers were eager to sell–at inflated prices even after Cash for Clunkers discounts so long as one can afford a $500 down payment. Many believe tax dollars were wasted paying more than what was paid by automakers two years earlier.