Cash for Clunkers, Boom or Bust?

Depending on which side of the desk you’re on in a car dealership, or which manufacturer provides you with your weekly paycheck, sentiment surrounding the Cash for Clunkers program was either a huge success or a tremendous flop. Here’s the first round of results from the 690,114 applications submitted worth over $2.8 billion.

Did you know that current deals submitted can still be rejected? If the auto industry was looking for a way to improve the public’s perception of car dealers, rejecting current submissions won’t help. Used car dealers are working hard to change the public’s image; a “bait and deny” program certainly hurts that effort.

Notice only five manufacturers are represented on this list: Toyota, Honda, Ford, Hyundai and Nissan.

Top 10 Most Purchased Vehicles:

1. Toyota Corolla

2. Honda Civic

3. Ford Focus FWD

4. Hyundai Elantra

6. Nissan Versa

7. Toyota Prius

8. Honda Accord

9. Honda Fit

10. Ford Escape FWD

Top 10 Trade-in vehicles:

1. Ford Explorer 4WD

2. Ford F-150 Pickup 2WD

3. Jeep Grand Cherokee 4WD

4. Ford Explorer 2WD

5. Dodge Caravan/Grand Caravan 2WD

6. Jeep Cherokee 4WD

7. Chevrolet Blazer 4WD

8. Chevrolet C1500 Pickup 2WD

9. Ford F-150 Pickup 4WD

10. Ford Windstar FWD Van

What did GM and Chrysler do to miss this opprotunity? Were the lingering bankruptcy memories still too strong? Were the requirements not as widely applicable to the current batch of GM and Chrysler vehicles on the road?

Who were the winners?

“American consumers and workers were the clear winners thanks to Cash for Clunkers program,” Ray LaHood, U.S. transportation secretary said Wednesday. “Manufacturing plants have added shifts and recalled workers. Moribund (or declining) showrooms were brought back to life and consumers bought fuel-efficient cars that will save them money and improve the environment.”

Trade-in vehicle statistics:

• 84 percent of vehicles traded-in were trucks
• 59 percent of those truck trade-in customers bought passenger cars
• Average trade-in mileage was 15.8 mpg
• Overall economy increased 9.2 mpg, or 58 percent
• Average new vehicle purchased receives 24.9 mpg

The White House Council of Economic Advisers predicted the following:

• Q3 economic growth of 0.3 to 0.4 percent at an annual rate
• Sustainable GDP from increased vehicle production and inventory fulfillment requirements
• 42,000 total jobs created and/or saved

Top 10 State Revenue Winners:

• California: $326,822,000
• Texas: $183,776,000
• New York: $156,292,000
• Florida: $146,565,000
• Illinois: $143,613,000
• Pennsylvania: $138,651,500
• Ohio: $136,267,000
• Michigan: $132,407,000
• New Jersey: $103,375,000
• Virginia: $98,523,500

Was your application rejected?

If so, do your used car research and you’ll find opportunities for savings above and beyond the rebates offered from the Cash for Clunkers program. And, without the hassles.