My Experience and Opinions on Cash for Clunkers

The Cash For Clunkers program is a relatively new idea developed by President Obama to help increase business for local and regional car makers and dealerships. Utilizing the new program, consumers can trade in their old gas guzzling clunkers to get as much as $4,500 credit towards the purchase of a new, fuel efficient or hybrid vehicle. The House and Senate has approved vast amounts of taxpayer money for this program. However, in my experience I really don't see how Cash For Clunkers differs greatly from any other program which allows you to trade in your used vehicle as a down payment on a newer one.

The Senate approved program gives consumers the illusion of saving money, which makes everyone want to rush out and buy a new car. It is true that newer cars are more fuel efficient, emit less gas into our atmosphere and are overall more environmentally friendly, so they are a much more logical choice for savvy car buyers who are concerned with the environment. But as far as saving the consumer vast amounts of money as promised, I don't see how that comes into play. I believe this program was passed by Obama as more of a way to draw consumers into the struggling automotive dealerships. George Pipas at the Ford Motor Company, sums it up best when he says "Anything to get consumers off the couch and give them a reason to go to the dealership."

I went to my local Farrell dealership recently in hopes of trading in my 26 year old Buick Regal for a more fuel efficient mini van that would be big enough to haul around my large family while saving me money at the pump while doing my part to help the environment. Once the application process was completed, I was told that my car was about a year older than required for the program as they only take cars that are at no more than 25 years old. But in the end, after a lot of wheeling and dealing, I ended up with a $3,000 credit towards the $5,000 down payment required on the 2009 Escalade that I chose, as you can see there really wasn't that much difference between that amount and the amount I would have gotten had I qualified for the Cash For Clunkers program.

The majority of cars that are brought to the dealerships under the Cash For Clunkers program are scrapped. Which also creates even more business for local junk yards and scrap dealers, so that is a definite upside to this program. I suppose that the Cash For Clunkers program works in many ways and has many advantages for business in general, although it doesn't really offer much of an edge for consumers. The rules of the Cash For Clunkers program besides the car being no more than 25 years old, is that it also must have a fuel economy rating of at least 18 miles per gallon and be registered and insured to the same person for no less than a period of one year. It also must be in drivable condition, and any trade in value you obtain under this program cannot be credited on a used vehicle, it must be new.

Many people in the government are working hard to get the whole Cash For Clunkers program scrapped. They claim it's a waste of taxpayers money and in no way is any help for 'the little people'. I believe this program is doing exactly what Obama intended it to. It is serving as an aid to those who are struggling in the automotive business. I suppose if you delve a little deeper there are additional advantages as it also creates a desire for consumers to own more fuel efficient cars that are more environmentally friendly. It creates additional business not only for the struggling car dealerships, it also creates jobs for sales people that are needed in the dealerships. The program creates work for the scrap dealers who buy the cars traded in under the Cash for Clunkers program, crushers who have to crush them, small recycling companies who buy the metals and the list goes on.

I say overall the program works, so leave it alone and let's see what happens. For more information on the cash for clunkers program visit www.cars.gov/ and www.cashforclunkersfacts.com