The dust has settled and the Cash for Clunkers stimulus numbers are in…and it seems like the Cash for Clunkers bill was a success, more or less. But, a closer look at the numbers suggests a few flaws in the program.

According to the U.S. Department of Transportation, the program was “wildly successful” with nearly 700,000 “clunkers” traded in for rebates on new, more efficient vehicles. For those cars, taxpayers (via the federal government) can expect to dole out $2.877 billion.

Here’s the rub – perhaps the fundamental rule of the Cash for Clunkers stimulus was to require people to buy new cars with a government rebate in exchange for their clunkers.

So, why doesn’t the amount of clunkers turned in match the amount of new cars purchased?

Cash for Clunkers update from the U.S. DOT touts impressive stats, but it just doesn’t add up

The number of clunkers brought in through this taxpayer funded stimulus program was reported as 690,114, according to press release in late August. That same release included a list of the number of cars and trucks purchased through the Cash for Clunkers Program, too. You would think that the number would be exactly the same, no? After all, the only way you could participate was to bring in a qualified clunker and buy a new car, right? Apparently not.

According to the federal government, 684,941 cars and trucks were bought through this auto industry stimulus program. That’s a difference of 5,173 cars and trucks. That means that more than 5,000 clunkers were traded in through the Cash for Clunkers stimulus and new cars were never bought. That’s 5,173 vehicles unaccounted for nearly $22 million dollars in government rebates potentially unaccounted for (the average rebate appears to be around $4,200).

As an interesting side note, the DOT press release does not tally the number of new cars and trucks sold – you have to root through the numbers and figure it out on your own.

Despite the thousands of missing cars and millions in unaccounted for rebates, the Cash for Clunkers stimulus effects are real

“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.”

Whether you share Secretary LaHood’s enthusiasm or not, the auto industry got a much-needed shot in the arm from the Cash for Clunkers program. With increased demand, auto makers are reporting production increases; have added extra shifts at their plants; and officials are expecting lasting effects that will result in 42,000 jobs in the second half of 2009.

Environment gets relief from the Cash for Clunkers program

Of the cars traded in and those bought, the result is more cars on the road that get better gas mileage. The average miles-per-gallon (mpg) of clunkers traded in was 15.8 and the new car average was 24.9 mpg – a 9.2 mpg improvement, or 58%.

According to the U.S. DOT, 84% of trade-ins under the program are trucks, and 59% of new vehicles purchased are cars. “The program worked far better than anyone anticipated at moving consumers out of old, dirty trucks and SUVs and into new more fuel-efficient cars,” the press release read.

With questionable numbers and many criticisms of the Cash for Clunkers bill, the overall result is lacking

The fact is, many more people wanted to participate in the Cash for Clunkers program than were able to. Most people with clunkers couldn’t afford to buy a new car even with the tax-payer subsidized rebate. Of course, the original funding for the program was spent in a week and Congress approved additional funding, but many still complained about the short duration of the Cash for Clunkers stimulus plan.

And, despite the DOT’s claim of 42,000 expected jobs and minor increases in nation economic growth, the actual duration of the program’s stimulus is questionable.

Cash for Clunkers gave us a lot of ‘ifs’ when it came to selling your car. BigBucksAuto gives you cash when you want to sell your car.

The Cash for Clunkers bill was not the wild success that the government claims. Clearly, something is wrong when more than 5,000 vehicles and more than $20 million are unaccounted for. The stimulus aspect of Cash for Clunkers seems temporary and the environmental benefits are tough to imagine considering the thousands upon thousands of gas guzzlers still on the road.

With Big Bucks Auto, selling your car comes with none of the hassle of a troubled federal program, full of restrictions and red-tape.  We’ve been in the business of buying cars for years, and our easy process means a fair price for your vehicle. And, the only rule about what you can do with your cash is simple – anything you want.

Take a look at how we buy used cars and give us a call at 1-888-44-BUCKS or 1-888-442-8257.

Image credit the consumerist

The car industry and auto makers are strong behind a new clunker bill, but is there any real benefit?

It’s safe to say that news for the U.S. automotive industry has not been positive lately. A “cash for clunkers” bill navigated its way through Congress, though, and the car industry couldn’t be happier.

Bottom-line, the clunker bill allows you up to $4,500 in discounts (thanks to the U.S. government…actually, thanks to the taxpayers) if you trade in your old car for a new, greener vehicle.

With most of the hoopla over-and-done with, and with President Obama’s signature on the Cash for Clunkers bill, a whirlwind of criticism and second-guessing has commenced. The car industry and auto makers are largely pleased with the bill and its stipulations, but that seems about it.

After the cash for clunkers plan was signed into law and in advance of the program’s commencement, a New York Times article pointed out that the stringent rules for the program might lead to its eventual downfall. In fact, the Baltimore Sun points out, the cash for clunkers bill only applies to cars purchased after July 1, 2009, but government officials can tweak the rules up until July 24. That leaves more than a month of unsure consumers and a confused car industry that doesn’t quite understand the rules, either.

In fact, most current media coverage of the cash for clunkers bill usually mention that the stipulations of the bill that result in the highest discount seem to encourage further purchase and use of SUVs – some of the least efficient vehicles on the road

Cash for clunkers (not so) fine print for your trade-in car

So, while auto makers urge you to sell your car (before you rush over to us at Big Bucks Auto), there are a few qualifications your trade-in has to meet in order to take qualify for the Cash For Clunkers plan:

• Your trade-in vehicle must operate at 18 miles-per-gallon or less; be built in 1984 or after; and in drivable condition.
• The trade-in has to be registered in the purchaser’s name and owned for at least one year.

What you buy determines what you get

And the Cash For Clunkers credit you receive for that trade-in can’t just be any ol’ car on the lot. With the blessing of the automotive industry and struggling car makers everywhere, your new car has to be greener:

• Cars need run at least 22 mpg and cost less than $45,000. For a car with a 4 mpg improvement from your old clunker, you get a $3,500 subsidy from the government. Cars with a 10 mpg improvement will get you a $4,500 subsidy.
• Small, light-duty trucks must run at least 18 mpg, with a $3,500 discount for a 2 mpg improvement in gas mileage and the full $4,500 for a 5 mpg improvement.
• Large, light-duty trucks must get at least 15 mpg with $3,500 for those with a 1 mpg improvement from your old car and a $4,500 subsidy for 2 mpg improvement.

Good news for the auto industry, but what about the rest of us

Then, we get to the part only slightly covered in automotive industry news that we feel should be revisited before the rules are finalized: Where do the old cars go?

Well, under this Cash For Clunkers plan, the government would take these cars and scrap them, thereby eliminating the economic benefit of reselling those cars in the private sector.  In other words, all of those cars traded in would not be placed into the used-car market, they would hit the scrap yard. Is this good for the environment? Probably. Good for the economy? It might be, but it would have more impact if those cars could re-enter the market and be sold. With the current proposed plan, the car industry would get an economic boost, but that’s the extent of it.

As far as the Cash For Clunkers bill acting as a way to get older, less efficient vehicles off the road – that would be true only for the few who actually qualify under the bill.

As far as we’re concerned at Big Bucks Auto, the Cash for Clunkers plan is too little, too late.

Stay tuned to find out how the cash for clunkers bill and the car industry turns out

Clearly, grumbling about the cash for clunkers bill is growing. The car industry, though, will likely need more of a boost than this bill to provide auto makers with enough steam to turn green for good.

Whether the Cash For Clunkers bill ends up making a difference or not, you can always learn more about how to sell your car in NYC with Big Bucks Auto™. After all, you’ll get a better deal from Big Bucks Auto than Uncle Sam any day.

Learn more about why choose us to buy your car and call us today at 1-888-44-BUCKS or 1-888-442-8257