cash for clunkers

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Cash for Clunkers Gone for Good

August 24, 2009 in Consumer News, MPG by kristen | No comments

The federal CARS rebate program — better known as Cash for Clunkers — came to an early end today, for the second time. The program, which started July 1 despite having no set guidelines for dealers or buyers, quickly ran out of funds. When The Rule, as the government’s Cash for Clunkers clarification was called, was published in late July outlining requirements and restrictions, buyers eagerly hopped on the bandwagon and exhausted the original $1 billion set aside for the program.

Congress acted fast and added $2 billion more to the program before its summer recess, but the money wasn’t enough to sustain CARS through its intended end date in November. As of Sunday night, Cash for Clunkers was over, with no extensions in sight. Thanks to red tape and the sheer number of people who used the program to ditch their old car and buy a shiny new one, many dealerships put the brakes on CARS at the end of last week.

What’s next for the auto industry? Let’s hope its an infusion of cash for hybrids, electric cars, trains, public transportation, and — hell, why not? — bike riding safety courses for newbies. That’s my post-CARS dream world; what’s yours? Leave it in the comments.

Cash for Clunkers Cleans the Air

August 10, 2009 in Consumer News, MPG, emissions by kristen | No comments

The Economic Policy Institute, a think tank in Washington, D.C., has crunched the numbers and declared Cash for Clunkers an economic and ecological success.

The Department of Transportation has calculated that the average fuel economy of the clunkers traded in so far has been 15.8 mph, while the new cars purchased under the program have averaged 25.4 mpg. According to the EPI, this translates to an annual savings of:

  • $821 in fuel savings per consumer
  • 87 million fewer total gallons of gas pumped
  • 22.2 million fewer barrels of foreign crude oil imported
  • 850,000 fewer tons of carbon dioxide emitted

Not to mention the shot in the arm it’s given the economy. This kind of government support can’t last forever, but it’s nice to know it worked like it was supposed to. Mostly.

Cash for Clunkers Final Details Released

July 27, 2009 in Consumer News, MPG by kristen | 1 comment

Okay, you’ve heard about the U.S. Government’s “Cash for Clunkers” deal for weeks now; how can you, savvy green consumer, take advantage of the program? First, you should know that it’s official name is CARS, or Car Allowance Rebate System. Clever, no? And you should know that there’s an entire web site devoted to CARS that can answer almost any question about the process you might have.

In a nutshell, though, here are the points you need to know if you’re considering trading in your old car for a bright, shiny new one — with better mileage and, one supposes, cleaner emissions from the tailpipe.

  • Cars must be purchased between July 1, 2009, and November 1, 2009, or until Congress runs out of rebate money
  • Combined fuel economy of the clunker must be a combined 18 mpg or less according to the EPA ratings — not according to your own actual mileage
  • The clunker can’t be more than 25 years old (that’s 1984 or later)
  • The clunker must be driveable as well as registered and insured for at least the year before you trade it in
  • The new car can be purchased or leased, but you have to lease it for at least 5 years
  • If the new car’s fuel economy is 4-9 mpg better than the clunker, you get $3500. If it’s 10 mpg or more better, you get $4500 toward your new car
  • The new car has to be new, not used
  • The clunkers have to be destroyed and never returned to the road

The Department of Transportation/NHTSA documentation for the program says there is an interactive tool at CARS.gov for determining if your car is eligible and how much your rebate would be, but as of today, that tool isn’t showing up. Maybe it’ll be there later this week; after all, the program went live three weeks before anyone knew exactly how it would even work.

Top Ten “Cash for Clunkers” Cars

July 3, 2009 in Consumer News, MPG by kristen | 3 comments

You’ve heard about the “cash for clunkers” legislation that allows U.S. car buyers to get up to $4,500 in cash vouchers for replacing gas guzzlers with fuel efficient vehicles. If you’ve got an older car or pickup truck with rotten gas mileage, you can replace it with a new car getting 22 mpg or better or a new pickup getting 18 mpg or better and receive a break on the price courtesy of your government.

Which cars should you be looking at? Marketing service Autobytel complied a list of auto makers that have vehicles that qualify for vouchers, and even figured out how many of the cars in each automakers fleet were eligible. Every vehicle offered by Mini and Scion, for instance, could get you some cash toward a new car if you trade in a clunker.

Here’s Autobytel’s top ten cash for clunkers cars, with the percentage of each maker’s fleet that qualifies for a voucher when you buy a new car:

  1. Mini 100%
  2. Scion 100%
  3. Honda 94%
  4. Saturn 93%
  5. Subaru 88%
  6. Suzuki 85%
  7. Pontiac 79%
  8. Mazda 74%
  9. Hyundai 73%
  10. Volkswagen 73%

Honda doesn’t receive perfect marks probably because it has that massive Ridgeline pickup truck in the fleet. And Volkswagen all the way down at number 10 was a surprise. Also, keep in mind that Saturn’s future is a bit shaky these days, and Pontiac has received an official death sentence as part of GM’s restructuring.