US ‘Cash for Clunkers’ scheme sees dubious results
October 30, 2009 by Matt Brogan
According to a recent study conducted by Edmunds, the US CARS program only spurred the sale of 125,000 new vehicles of the almost 690,000 sold under the government’s Cash for Clunkers program.
Given past and predicted sales trends, the study discovered that 565,000 of the vehicles sold under the program would have left dealers lots at some point this year regardless of the CARS program, leaving US taxpayers with a bill of $24,000 per car for the program’s 125,000 incremental sales.
Edmunds’ research also discovered that October sales would have been much higher had it not been for the government’s Cash for Clunkers program.
“October sales are up, but without Cash for Clunkers, sales would have been even better,” said Edmunds.com CEO Jeremy Anwyl.
Edmunds acknowledges that the program probably had a positive environmental impact as many buyers wouldn’t have otherwise traded in their older vehicle, but the research firm is dubious of the economic impact of the CARS program, saying “the economic claims have been rendered quite weak.”
Print it: 
And some people are somehow surprised by this?
The phrase “Told ya so” springs to mind.
You can only buy a car if you got a job!
Not lke the good old days prior to GFC.
Cash for clunkers didn’t help the auto industry, the environment, the taxpayers, the poor, car repair shops or car donation.
["Given past and predicted sales trends, the study discovered that 565,000 of the vehicles sold under the program would have left dealers lots at some point this year regardless of the CARS program, leaving US taxpayers with a bill of $24,000 per car for the program’s 125,000 incremental sales."]
Huston we have another Rocket Scientist….:-)
Much like the investment allowance here, all it really has doen and will do is bring people forward. The vehicles we sold in June to tradies and small companies (before it was extended to dec) were predominately brought forward from August Sept Oct sales.
Well hasnt your tune changed since a few months ago when we had a heated discussion about the topic of bringing forward sales……..
August 12, 2009 at 8:39 pm
QUOTE……….
“Their is no evidence to my knowledge that we have brought the market forward and robbed Peter to pay Paul.”