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Posts Tagged ‘Cash Allowance Rebate System’

Cash for Clunkers Did Better Than Expected

Should program be repeated, authors ask.

by on Mar.09, 2010

Despite some problems, the Cash for Clunkers program was a big success, contends a new study.

Despite some well-publicized problems with the administration of last year’s so-called Cash for Clunkers program, the venture performed even better than anticipated, according to a new study that shows it brought significant incremental sales to a struggling U.S. automotive market.

In all, the Cash Allowance Rebate System, or CARS, directly generated 542,000 sales that would not have been made without the program, which offered qualifying buyers incentives of up to $4,500, reveals a new study by Maritz Automotive Research Group.  In addition, about 250,000 “halo sales” were created, according to Maritz Vice President Dave Fish.  Those were sales made to buyers who either didn’t qualify for the tax credits or who decided to purchase a vehicle that wan’t covered by CARS.

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“As far as taxpayers are concerned,” said Fish, “from a return-on-investment standpoint, (the program) certainly met its goals” of both stimulating the automotive market and removing inefficient, polluting cars from the road.”

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“Clunkers” Extension DoA?

Senate reluctant to approve additional $2 billion, despite clear signs the rebate program is spurring U.S. auto market.

by on Aug.04, 2009

Without a fresh infusion of government cash, the Clunkers program will have to shut down by this weekend.

Without a fresh infusion of government cash, the Clunkers program will soon shut down.

Despite clear signs of success, the U.S. Senate seems reluctant to approve an extension of the so-called Cash-for-Clunkers bill.

The House authorized a $2 billion extension to the original, $1 billion fund, formally known as the Car Allowance Rebate System, or CARS, and the Obama Administration has joined those lobbying for approval by the other side of Capitol Hill.

There would be a significant irony should the Senate reject the proposal, as many observers are now calling CARS the most immediately effective stimulus program to emerge from Washington since the nation fell into the current, deep recession.  Not only has the program spurred hundreds of thousands of motorists to buy a new vehicle, but it appears they are purchasing even more fuel-efficient models than Clunkers proponents had anticipated.

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Describing CARS as “inept and poorly run,” South Carolina Republican Jim DeMint signaled he is unlikely to support the requested $2 billion infusion, though his Carolinian colleague, Lindsay Graham, also of the GOP, told the Today Show, “I think the Senate will act this week and get some of the clunkers off the road.”

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