Feds: Cash for Clunkers Worked, but Uncertainties Remain

Clunkers
The Cash for Clunkers program succeeded in its broad, basic objectives of providing economic stimulus to a struggling industry, but ultimately the results are difficult to gauge, according to a report by the Government Accountability Office.

Despite Cash for Clunker’s success, the GAO found that “the extent of the program’s stimulative effect on the economy is uncertain." For instance, some of the sales may have happened regardless of the program, although the National Highway Traffic Safety Administration estimates that 88% of the 677,842 vehicles sold under the program were to buyers who otherwise would have stayed home.

The program's other goal was to improve fuel economy, and it did. The average fuel economy of the vehicles traded in was 15.7 mpg, while the new cars purchased or leased averaged 24.9 mpg. But because new vehicles tend to have far better mileage, the GAO says it’s reasonable that many of the new cars would have been more efficient anyway.

According to the Department of Transportation, NHTSA had limited time to design and implement the program’s consumer survey, which may make it harder to study for future policy decisions.

Comments 

Amuro Ray

"You (the gov't) say it best, when you say nothing at all!"

Post a Comment 

Please remember a few rules before posting comments:

  • If you don't want people to see your email address, simply type in the URL of your favorite website or leave the field empty.
  • Do not mention specific car dealers by name. Feel free to mention your city, state and brand.
  • Try to be civil to your fellow blog readers. This blog is not a fan or enthusiast forum, it is meant to help people during the car-buying process and during the time between purchases, so shoppers can keep a pulse on the market.
  • Stay on topic. We want to hear your opinions and thoughts, but please only comment about the specified topic in the blog post.
view posting rules

If you have a TypeKey or TypePad account, please Sign In

Search Results

KickingTires Search Results for

Search Kicking Tires

KickingTires iPhone App
Ask.cars.com