The CARS program, aka Cash for Clunkers, ended last night as almost 700,000 vehicles were removed from U.S. roads at a cost to taxpayers of $2.9 billion dollars based on an analysis of submissions by the 8 p.m. deadline.
“American consumers and workers were the clear winners thanks to the cash for clunkers program,” said U.S. Transportation Secretary Ray LaHood.
“Manufacturing plants have added shifts and recalled workers. Moribund showrooms were brought back to life and consumers bought fuel efficient cars that will save them money and improve the environment,” he said.
The Obama administration in spite of the clear success of the stimulus program apparently has no plans to extend the rebates. The Administration is facing unprecedented federal deficits that grew by another $2 trillion, according to a report issued yesterday by the White House to Congress.
According to a preliminary analysis by the White House Council of Economic Advisers, the CARS program will:
- Boost economic growth in the third quarter of 2009 by 0.3-0.4 percentage points at an annual rate thanks to increased auto sales in July and August.
- Sustain the increase in GDP in the fourth quarter because of increased auto production to replace depleted inventories.
- Create or save 42,000 jobs in the second half of 2009. Those jobs are expected to remain well after the program’s close.
About 84% of consumers traded in trucks and 59% purchased passenger cars, according to the DOT. The average fuel economy of the vehicles traded in was 15.8 miles per gallon and the average fuel economy of vehicles purchased is 24.9 mpg — a 58% improvement.
Top 10 New Vehicles Purchased
- Toyota Corolla
- Honda Civic
- Toyota Camry
- Ford Focus FWD
- Hyundai Elantra
- Nissan Versa
- Toyota Prius
- Honda Accord
- Honda Fit
- Ford Escape FWD