Cash for Clunkers Program Comes to an End

When Congress passed the legislation which brought the Car Allowance Rebate System (CARS) program, more commonly known as “Cash for Clunkers”, many cried foul and contended that the legislation was nothing more than a subsidy to the automotive industry. Others stated it was a needed stimulus to the economy and would significantly increase the fuel economy of the average vehicle that was on the road.

According to the USA Today, a total of $2.58 billion worth of vouchers were turned into the Department of Transportation as of Monday morning. The original legislation allotted $1 billion worth of vouchers, but when the program ran out of money, Congress and the president allocated an additional $2 billion worth of vouchers since the program was so successful. Secretary of Transportation, Ray LaHood has stated that the program was “wildly successful” in bringing fuel inefficient vehicles off the road and in jump-starting the economy.

Car Dealers will have until 12:00 PM EST on Tuesday, August 25th, 2009 to file reimbursement paperwork for customers participating in the cash for clunkers rebate program. All sales will need to be completed by Monday, August 24th at 8:00 PM EST.

The Department of Transportation estimates that 700,000 vehicles will have been taken off the road with the program and will significantly decrease automotive pollution. According to the DOT, the average vehicle that was turned in got just 15 miles per gallon. The new cars that individuals purchased were an average of 60% more fuel efficient. The most commonly turned in vehicle under the program was the Ford Explorer and the most popular vehicles purchased under the program were the Toyota Corolla, the Ford Focus and the Honda Civic.