Cash for Clunkers Success = Greenification

August 24, 2009

The U.S. government's "Cash for Clunkers" program officially ends at 8pm on Monday, but not before handing out $3 billion to consumers who trade in their old gas guzzlers for new cars that sip at fuel. The program has been dubbed a success by the Obama administration, and indeed, customers were dashing in all weekend to try to take advantage of the genuine once-in-a-lifetime deal before it disappeared.

The preliminary numbers are impressive. At a time when American consumers weren't confident parting with cash, the program brought in 457,000 transactions as of last Thursday, at an average cost of $4000 per trade-in. It generated enough business to make car salesmen smile once again, and force carmakers to call back laid-off workers and crank up production to meet demand.

It wasn't perfect. The jubilant response means Americans are still in love with their vehicles. Nobody turned in a clunker and then left on bicycle. Officials weren't prepared for the massive paperwork requirements. And the government has yet to reimburse many cash-strapped dealerships for the trades made.

But it's a start. It's a move towards putting mileage in a more prominent position when negotiating car deals. It's a little forward motion, too, for our economy.

So what's next? And what if you wanted to get rid of a clunker that might need retirement but didn't meet the (rather narrow) definition of what the Obama administration was willing to take in trade? How can you get rid of a gas-guzzler while still getting a benefit?

Might we recommend that you turn it in to a charitable group and reap the benefit? All over the country, various nonprofit groups will accept cars as gifts. Sometimes the gift can be quite valuable at tax time. (You'd need to discuss that with your accountant. Please don't take our word for it. Ask your professional.)

You can pick a favorite charity and call them up. Some are more interested than others. Some will accept them on delivery, or even come and tow them away if needed. So if you're interested in getting rid of a clunker but can't get in line for the round of cash ending on August 24th at 8pm, don't be discouraged. You can still Greenify your ride and your pocket. You just need to pick a different avenue.


Cash for Clunkers

August 6, 2009

We’d like to bring your attention to a new government program that may only be in place for a very short time.  If you want to take advantage of the “Cash for Clunkers” program, you’ll need to hop on it quickly. 

The Car Allowance Rebate System, or “Cash for Clunkers” is one of the few federal stimulus programs that everyone seems to be onboard with.  It’s a federal program that will credit you up to $4,500 to trade in your old car for a more fuel-efficient model. 

There are some restrictions, but this wildly popular program has few downsides.  President Barack Obama says the program “has succeeded well beyond our expectations and all expectations.” Transportation Secretary Ray LaHood claims “this is the stimulus program that has worked better than any other stimulus program that was conceived.”

And like a lot of green programs, it works from a multitude of angles. 

When the recession began, the U.S. auto industry was already in trouble.   Gas prices, which had skyrocketed the year before, were making American-made cars unpopular.  Car sales, already flagging, dropped to almost immeasurable.   By pumping money into getting Americans to spend on cars, we get the economy moving and shrink our carbon footprint by getting gas-guzzling cars off the road and out of commission. 

The program was clipping along with sales so good that it appeared it would run out of money just as it was starting.  Its $1 billion budget was projected to run out, prompting the House of Representatives to vote last week to authorize another $2 billion. But in the Senate, Republican senators say they will block more funding, calling it a waste.  That would be unfortunate.  Because ”Cash for Clunkers” stood for stimulating the economy and putting more Americans in the drivers’ seat with a lower cost to our environment.


Greenify by Cashing Out a Clunker?

January 29, 2009

A measure introduced this past week by U.S. Senators Dianne Feinstein (D-Calif.), Susan Collins (R-Maine), and Charles Schumer (D-N.Y.) would establish a national voucher program to encourage drivers to trade in older, less fuel efficient cars, trucks or SUVs for a more fuel efficient vehicle.

It’s billed as the “Cash for Clunkers” program.  It would give drivers a credit of between $2,500 and $4,500 to turn in fuel-inefficient vehicles to be scrapped, and purchase a more fuel efficient vehicle. The traded-in vehicles would have to be drivable, have a fuel economy of no more than 18 miles per gallon, and have been registered for at least the past 120 days. Vouchers could also be redeemed for transit fares for participating local public transportation agencies. The program would operate for four years, from 2009 – 2012, and is expected to encourage the early retirement of up to one million vehicles per year.

This is Congress’ attempt at encouraging drivers to trade in less fuel efficient vehicles in a tough economic client. 

“If enacted, this bill would be an important part of helping getting America’s struggling automobile industry back on its feet – and help consumers who are concerned about covering the cost of buying a more fuel efficient vehicle,” said Senator Feinstein.

The bill would also…

  • Save an estimated 40,000 to 80,000 barrels per day of motor fuel by the end of the fourth year.
  • Reduce greenhouse gas emissions between 6.6 million metric tons to 7.6 million metric tons, or the equivalent of removing 1.1 million to 2.2 million vehicles from the road in one year, (based on an estimated 500,000 to 1,000,000 vouchers issued per year).
  • Reduce nitrogen oxides, which cause ground-level ozone (a leading cause of respiratory health problems, like asthma), by 3,043 short tons (2,761 metric tons) by 2013, (based on an estimated 500,000 to 1,000,000 vouchers issued per year).

The senators hope this will compliment a new fuel economy law, which if passed, will raise average fuel economy standards for America’s fleet of vehicles by at least 10 miles per gallon over 10 years or from 25 to at least 35 mpg by the year 2020.


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