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Study: Cash For Clunkers Was A Wash

http://www.npr.org/blogs/money/2010/09/02/129608251/cash-for-clunkers -- The government's "cash for clunkers" program boosted auto sales by 360,000 during the two months it was in place, according to a new study.

But in the seven months that followed, sales were down by 360,000 compared to what they would have been without the program, the study found.

The implication: The program didn't bring new buyers into the market. But it encouraged people who would have bought a car anyway to make their purchase a few months sooner.

Under the program, the government paid people about $4,000 to trade in old cars for newer, more fuel efficient ones. The idea was to both stimulate the economy by driving up auto purchases, and improve the efficiency of all cars on the road.

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Submitted Sep 03, 2010 By: BurntOrange

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DrCashFlow Champion Author Massachusetts Posts:4,775 Points:1,168,555 Joined:Jun 2008	Message Posted: Sep 12, 2010 2:54:47 PM Ignore DrCashFlow Report Abuse the heck it was, more like a washout.
ethyl9 Rookie Author Rochester Posts:81 Points:239,270 Joined:Oct 2009	Message Posted: Sep 8, 2010 8:55:56 PM Ignore ethyl9 Report Abuse At least it exchanged old guzzlers for new.
Lugi1967 Champion Author Ohio Posts:2,585 Points:543,445 Joined:Jun 2010	Message Posted: Sep 8, 2010 7:34:19 PM Ignore Lugi1967 Report Abuse The only thing that really changed hands was taxpayer money
kelsielee Champion Author Atlanta Posts:3,389 Points:672,025 Joined:Sep 2008	Message Posted: Sep 5, 2010 8:37:09 PM Ignore kelsielee Report Abuse The results are not a surprise.
Martinman Champion Author Mississippi Posts:11,747 Points:1,658,215 Joined:Sep 2005	Message Posted: Sep 5, 2010 7:49:56 AM Ignore Martinman Report Abuse Please take your politically-motivated, racist comments elsewhere.
Gas_Buzzer Champion Author South Carolina Posts:11,840 Points:2,163,670 Joined:Sep 2005	Message Posted: Sep 4, 2010 11:43:41 AM Ignore Gas_Buzzer Report Abuse Anything that comes out of the Donkeycrat thinking is a scam and doomed for failure. ie: Dept of Education (Carter) Dept of Energy (Carter) Welfare (FRD) Social Security (FDR) Unemployment (Wilson) Healthcare (Obammie) What happened to each taking care of his own???
Martinman Champion Author Mississippi Posts:11,747 Points:1,658,215 Joined:Sep 2005	Message Posted: Sep 4, 2010 8:39:05 AM Ignore Martinman Report Abuse Probably the biggest indicator of the effect of the CARS Program (a.k.a. Cash-4-clunkers) is Chrysler's sales. Unlike the other manufacturers, Chrysler did not benefit nearly as widely as other manufacturers, because they were just emerging from their brief bankruptcy reshuffle, had stopped vehicle production in May, and had begun closing dealerships. Yet Chrysler's sales have shown a gradual improvement as compared to other auto manufacturers. So, if the CARS Program pulled from future sales, why has Chrysler shown ANY rebound in sales, and continued steady improvement - versus the explosive increase by Ford and others prior to the drop in sales the last two months?
bigreddwg Champion Author Tampa Posts:4,967 Points:1,042,630 Joined:Nov 2005	Message Posted: Sep 4, 2010 3:51:58 AM Ignore bigreddwg Report Abuse funny, that when it was happening, everybody was happy about it...now, everybody is complaining about it. most likely - it's the republi-CANTs who are looking for election >cannon< fodder for nov. election campaigns!!!
AuburnTim Champion Author Indiana Posts:5,701 Points:1,284,955 Joined:May 2005	Message Posted: Sep 4, 2010 1:37:57 AM Ignore AuburnTim Report Abuse The cars that were scraped we still good and people with lower incomes sure could have used them. Many people couldn't afford the highly overpriced vehicles to start with and even with a $4,000 credit many still couldn't get financed or afford to trade. Face it new car prices are just to high and will continue to be. If they would just build cars everyone could afford they might just sell more. I don't feel sorry for big auto at all.
NOTSOGRN Champion Author Michigan Posts:1,280 Points:1,082,200 Joined:Dec 2007	Message Posted: Sep 4, 2010 1:36:24 AM Ignore NOTSOGRN Report Abuse What it did do was move the back log of that year's product. After that the down sizing to fit what the market has become. To do that they where partly giving the cars away. A gift to us from us.
craigsf38 Champion Author Rochester Posts:3,415 Points:1,045,065 Joined:Jun 2008	Message Posted: Sep 4, 2010 1:30:54 AM Ignore craigsf38 Report Abuse just away to sell our future to other countries and that may have been an very dangerous decision
Pozole Champion Author Portland Posts:6,358 Points:1,126,700 Joined:Mar 2005	Message Posted: Sep 4, 2010 1:29:19 AM Ignore Pozole Report Abuse ..a few people acquiring vehicles made out on it...seemed a waste to destroy vehicles that still ran well... [Edited by: Pozole at 9/4/2010 1:29:41 AM EST]
roadrunnerMO Champion Author Kansas Posts:5,986 Points:1,232,185 Joined:Jul 2008	Message Posted: Sep 4, 2010 1:20:18 AM Ignore roadrunnerMO Report Abuse The program is going to cost those who wanted it their jobs in elections in two months. Many are already gone. Reid felt it would help them all when election time came along. It was his baby. Bye bye Harry. Enjoy retirement.
OnTheWater Champion Author Orange County Posts:2,123 Points:622,380 Joined:Nov 2009	Message Posted: Sep 4, 2010 1:17:49 AM Ignore OnTheWater Report Abuse That program was stupid from the get go!!!!! It barely boosted the economy and it was only for a short period of time then it went back into the tank again!!! And who do you think paid the $4000 to consumers who traded in, well the tax payer of course!!!!!!!!!!!!!!
Rageagainsttm Champion Author Tampa Posts:6,004 Points:1,446,120 Joined:Jul 2007	Message Posted: Sep 4, 2010 1:16:23 AM Ignore Rageagainsttm Report Abuse I said that was going to happen when the program started.
joel27nc Champion Author Raleigh Posts:8,152 Points:1,391,370 Joined:Mar 2008	Message Posted: Sep 4, 2010 1:16:13 AM Ignore joel27nc Report Abuse Cash for clunkers was a FLUSH, down the toilet.
N5EXY Champion Author Austin Posts:3,190 Points:1,045,155 Joined:Jul 2004	Message Posted: Sep 4, 2010 1:13:54 AM Ignore N5EXY Report Abuse Read up on "The Tragedy of the Commons". It is where this country is going - unless enough of us can turn things around. We can start in 60 days - all in the house of representatives are up for re-election. A lot of jackasses (democrat donkeys) in Texas are too. Elephants never forget. Jackasses never learn. [Edited by: N5EXY at 9/4/2010 1:16:33 AM EST]
bbreff Champion Author Atlanta Posts:7,642 Points:2,127,990 Joined:Jun 2005	Message Posted: Sep 4, 2010 1:12:44 AM Ignore bbreff Report Abuse A wash, I do not think so. It was a bunch of taxpayer money given away to those too lazy to help themselves.
Jarol Champion Author Iowa Posts:5,998 Points:1,125,465 Joined:Nov 2007	Message Posted: Sep 4, 2010 1:07:30 AM Ignore Jarol Report Abuse Awash in debt for the taxpayer. Why should YOUR taxes help me buy a car? Do you want to pay my mortgage too?
genef01 Champion Author Nashville Posts:2,611 Points:834,680 Joined:Jul 2008	Message Posted: Sep 4, 2010 1:04:54 AM Ignore genef01 Report Abuse Just a shameful waste to taxpayer money that didn’t accomplish anything except raise the national debt to a higher level.
abcdMA Champion Author Worcester Posts:5,614 Points:1,113,275 Joined:Nov 2008	Message Posted: Sep 4, 2010 1:04:04 AM Ignore abcdMA Report Abuse another waste of money bo this administration--money we don't really have!
Vette1967 Champion Author Albany Posts:3,644 Points:813,900 Joined:Jun 2009	Message Posted: Sep 4, 2010 12:59:20 AM Ignore Vette1967 Report Abuse Most thought that right from the start. Time to get over it and move on.
speedys Champion Author Utah Posts:4,660 Points:2,091,300 Joined:Nov 2005	Message Posted: Sep 4, 2010 12:40:27 AM Ignore speedys Report Abuse Do these figures surprise anyone?
TheSicilian Champion Author Jacksonville Posts:3,021 Points:1,002,225 Joined:Feb 2009	Message Posted: Sep 4, 2010 12:35:08 AM Ignore TheSicilian Report Abuse it did nothing to really help anything except to increase the debt and burden on taxpayers
zeddieiv Champion Author Columbia Posts:5,651 Points:1,490,920 Joined:Oct 2006	Message Posted: Sep 4, 2010 12:29:09 AM Ignore zeddieiv Report Abuse This we all know, all who pay attention.
WIPACKERFAN Champion Author Chicago Posts:6,480 Points:1,383,835 Joined:Aug 2005	Message Posted: Sep 4, 2010 12:26:03 AM Ignore WIPACKERFAN Report Abuse Z51Corvette, you said it very well. What a waste of money. My taxpayer money.
Z51Corvette Champion Author Austin Posts:6,156 Points:1,224,540 Joined:Jan 2008	Message Posted: Sep 4, 2010 12:21:12 AM Ignore Z51Corvette Report Abuse Not surprised this bonehead plan did as expected... what a waste of $$$.
rxman1 Champion Author Toledo Posts:6,996 Points:1,396,195 Joined:Nov 2007	Message Posted: Sep 4, 2010 12:18:54 AM Ignore rxman1 Report Abuse We all hear how the stimulus is working. I wonder who our government is trying to convince ... us or themselves.
Blue_Cruzer Champion Author Lexington Posts:5,147 Points:1,201,650 Joined:Mar 2007	Message Posted: Sep 4, 2010 12:16:16 AM Ignore Blue_Cruzer Report Abuse Only a few actually benefited from the program.
altonb1 Champion Author Pennsylvania Posts:6,890 Points:1,053,570 Joined:Jul 2005	Message Posted: Sep 4, 2010 12:16:00 AM Ignore altonb1 Report Abuse It was only a wash with regard to sales. As far as taxpayer money, we are just further in debt as a nation.
ajrn Champion Author Toledo Posts:11,997 Points:2,514,465 Joined:Nov 2003	Message Posted: Sep 4, 2010 12:10:38 AM Ignore ajrn Report Abuse It wasn't a wash.. We'll be paying for those "new" cars, long after THEY'RE clunkers.. If it was truly about jobs-- only cars PRODUCED stateside (domestic or imports, with JOBS here) should have been eligible.. It's just insanity.. Maybe we should spend a billion dollars studying why it didn't work..
lovemymac Rookie Author Kansas City Posts:52 Points:18,135 Joined:May 2007	Message Posted: Sep 4, 2010 12:03:25 AM Ignore lovemymac Report Abuse Most of these cars that were traded in were sold for scrap. It was under the law. Which is stupid. The cars could have been cleaned up and checked and anything engine wrong fixed and sold cheap for teens and people who needed a car but could not afford one. Instead of selling them for junk for next to nothing they could have given the cars to people who needed them in shelters and single parents and others so they could get jobs or be more independent. I knew it would do nothing for the economy if someone is going to buy a car they will. It was stupid
MINER Champion Author Pittsburgh Posts:8,960 Points:2,585,815 Joined:Jul 2002	Message Posted: Sep 4, 2010 12:02:31 AM Ignore MINER Report Abuse I thought the idea was to get people out of the gas hogs....
us4usa Champion Author Missouri Posts:3,815 Points:679,250 Joined:May 2008	Message Posted: Sep 4, 2010 12:00:56 AM Ignore us4usa Report Abuse We still have all of our Clunkers.
TRAIN RIDER Champion Author San Bernardino Posts:6,763 Points:2,297,910 Joined:Oct 2004	Message Posted: Sep 4, 2010 12:00:07 AM Ignore TRAIN RIDER Report Abuse THE ONLY PERSON IN THE U.S. WHO DIDN'T KNOW THIS WAS A WASH WAS PRESIDENT OBAMA.
DrCashFlow Champion Author Massachusetts Posts:4,775 Points:1,168,555 Joined:Jun 2008	Message Posted: Sep 3, 2010 11:57:47 PM Ignore DrCashFlow Report Abuse a washout.
NHLiveFree Champion Author New Hampshire Posts:7,202 Points:1,170,135 Joined:Jun 2008	Message Posted: Sep 3, 2010 11:55:48 PM Ignore NHLiveFree Report Abuse It was hardly a wash. It should have promoted and been limited to only USA corporations that keep the money here rather than shipping all the profits back to Japan, Korea, etc.
signwiz Champion Author Indiana Posts:1,395 Points:1,349,080 Joined:Feb 2006	Message Posted: Sep 3, 2010 11:54:38 PM Ignore signwiz Report Abuse Obama, Duh?
aggietim Sophomore Author Fort Worth Posts:148 Points:335,210 Joined:Oct 2008	Message Posted: Sep 3, 2010 11:52:06 PM Ignore aggietim Report Abuse It was really a loss for the taxpayers who couldn't buy a new car and get the incentive because our cars got better gas mileage eventhough it was old.
aldog365 Champion Author Nashville Posts:3,140 Points:1,557,660 Joined:Aug 2005	Message Posted: Sep 3, 2010 11:37:24 PM Ignore aldog365 Report Abuse And to top that off,the dealers sold the clunkers to brokers and they sold them to other countries. It's all about the dollar.
Mowerman08 Champion Author Milwaukee Posts:2,470 Points:779,655 Joined:Aug 2008	Message Posted: Sep 3, 2010 11:35:04 PM Ignore Mowerman08 Report Abuse NOT a WASH for the TAX PAYER! It was a MINUS for the people that paid for the program - the TAX PAYERS! ! !
mstearno Champion Author Dayton Posts:5,862 Points:1,285,210 Joined:Jan 2008	Message Posted: Sep 3, 2010 11:34:23 PM Ignore mstearno Report Abuse gee a few weeks ago some argued it helped... all it did was waste my hard earned tax dollars
MRED3 Champion Author Jacksonville Posts:3,626 Points:803,345 Joined:May 2009	Message Posted: Sep 3, 2010 11:30:15 PM Ignore MRED3 Report Abuse Just more stooped stuff out of the government.
cudatim Champion Author San Antonio Posts:2,186 Points:1,081,005 Joined:Jan 2007	Message Posted: Sep 3, 2010 11:27:02 PM Ignore cudatim Report Abuse Who thought that was really going to be a saving effort for the economy?
onegiraffeAL All-Star Author Alabama Posts:699 Points:246,400 Joined:Jan 2010	Message Posted: Sep 3, 2010 11:25:35 PM Ignore onegiraffeAL Report Abuse clunk.
96sc1 Champion Author El Paso Posts:7,440 Points:1,141,455 Joined:Mar 2008	Message Posted: Sep 3, 2010 11:23:42 PM Ignore 96sc1 Report Abuse Cash for clunkers didn't benefit anyone who needed help. And as for improving the economy of the fleet... too many people bought F-150's to claim that.
Betsy3266 All-Star Author Atlanta Posts:646 Points:248,175 Joined:Apr 2008	Message Posted: Sep 3, 2010 11:19:59 PM Ignore Betsy3266 Report Abuse I guess the government could have saved a bunch of research money if they had just called me.
nimpy Champion Author Indianapolis Posts:6,304 Points:1,332,780 Joined:Oct 2007	Message Posted: Sep 3, 2010 11:18:27 PM Ignore nimpy Report Abuse could have told you that last year
bell05 Champion Author Atlanta Posts:6,874 Points:1,408,635 Joined:Jun 2005	Message Posted: Sep 3, 2010 11:18:27 PM Ignore bell05 Report Abuse my2nd66gto, some true, but for the most car, it didn't take the ones us HotRodders would be looking for. Just another OB flash in the pan and to spent the USA further in debt. And wait till those people have to pay taxes on that money.
DEG Champion Author Las Vegas Posts:15,397 Points:3,054,380 Joined:Jul 2003	Message Posted: Sep 3, 2010 11:17:17 PM Ignore DEG Report Abuse Actually it was bad for the economy because it dried up the donations to charitable organizations.