Cash for Clunkers (CARS) Officially Ends August 24
After Cash for Clunkers (CARS) used up all its funding within a month (July 1 – 24), Congress approved additional funding to extend it by another $2 billion. Now that additional $2 billion has been claimed, so the program will officially end.
The official end of the Cash for Clunkers program is 8pm EDT on August 24 (Monday).
Did the CARS program succeed? Well, according to CBS news it generated more than 500,000 new car sales. So the money wasn’t used up in overheads, etc, it was used up because people actually used the program.
Whether or not this means a true stimulus of the American economy, the CARS program worked in getting new cars sold. Over the next few months, we’ll find out how this played out for dealers and car purchasers. Will all the vouchers be properly redeemed? Will some people find themselves with new cars and without rebates? Dealers in some places have been making new car buyers sign agreements saying they’ll pay the full price if the voucher isn’t approved.
Which cars were bought most? The Ford Focus was the top car purchased, followed by the Toyota Corolla, Honda Civic, Toyota Prius and Toyota Camry. This is in contrast to over 3/4 of cars turned in, which were trucks and SUVs. The average mpg of the cars went up 10mpg.
Will Congress approve more money for the program? It’s unlikely, as they’re on recess and will be through the end of August. This is probably the end of Cash for Clunkers/CARS for good.
To find out more about the Car Allowance Rebate System program, you can check out cars.gov and read their FAQ, updates, etc.
Find out next: Does Cash for Clunkers affect your taxes?