The government's CARS program -- affectionately referred to as Cash For Clunkers--apparently has been effective… even before it officially began.
As we highlighted a few weeks ago, the program is designed to stimulate the economy and help the environment by offering an incentive to trade in vehicles that get less than 18 miles per gallon for new, more fuel efficient rides. While it’s unknown whether Americans will actually trade in their cars, the economic impact of the program, which only began July 27, has already been felt.
Many auto dealers have increased advertising in advance of the program, which gives you a rebate of $4,500 for a qualifying trade in, as well as increased their staff in anticipation of the program’s popularity.
A few companies have even made their own special offers. Hyundai has offered cash advances equal to the Cash For Clunkers rebate since July 1. Not to be outdone, Chrysler will match the government’s incentive, offering up to $4,500 or zero percent financing for many of its vehicles.
If you’re planning on taking advantage of the government’s program, you have until November 1, or until the $1 trillion that’s been allocated for this program is paid out. But as many analysts have pointed out, the program is only a good deal if you were planning on buying a new car anyway. While taking a few thousand dollars off the price of a car is nice, it’s not worth it if you can’t afford to pay for the rest.
--Cody
Update: Cash for Clunkers has already run out of money, but the White House and members of Congress are searching for a way to continue funding the program.
Thanks for keeping us updated about this program.
It's nice the chrysler and hyundai are offering extra incentives to buy their vehicles, however I heard that the Toyota Corolla and Honda Civic are the top sellers in this program.
The program received $2 billion in additional funding last week, so we'll see if that trend continues.
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