Cash for Clunkers proved too successful for the Feds.
The Cash for Clunkers program ended yesterday due to its amazing popularity and effectiveness.
The program reimburses owners of older, less fuel-efficient cars between $3,500 and $4,500 to be used toward the purchase of a new, fuel-efficient car. According to U.S. Transportation Secretary Ray LaHood, as of August 20th, the government had recorded more than 457,000 transactions worth $1.9 billion in rebates.
The federal government had appropriated $3 billion for the program, enough to remove about 750,000 cars from the road. Federal officials were concerned that at the current rate of car sales, the money could be exhausted after this weekend.
With all the problems of this program – from funding to paying the car dealerships (which reports say hasn’t happened yet!) -this program was perhaps the seminal step towards weaning the public away from gas guzzlers and enabling them to more easily step into helping the environment. The program’s results have shown that, given the opportunity, people will “step up”.
The government – and our politicians – would do well to see the results for what they are – an amazingly positive step in the right direction – and see how they can replicate them.
