As Uncle Sam sees it, the point of the Cash for Clunkers rebate system wasn't to get you into a better set of wheels. It was to jump start the flagging auto industry and pull old, polluting gas guzzlers off the road. And it's working.
The Detroit Free Press reports, "American motorists looking to scrap their clunkers already have purchased more than 4,000 new vehicles under the $1 billion ‘Cash for Clunkers' program. The National Highway Traffic Safety Administration said as of early Tuesday, 4,026 vehicles had been purchased using vouchers totaling $17,035,500."
If you're ready to trade in your old car for a new one, contact local dealers to start the process.
The initiative began Monday morning, so the announcement means that $17 million in vouchers was paid out on the first day.
Cars, not trucks or SUVs, have made up the bulk of the vehicles scrapped so far. Kicking Tires notes, "NHTSA says 2,550 of the 4,026 vehicles turned in were passenger cars, with the rest being light trucks."
Those still thinking about using the program should be aware that the numbers have an impact on your chances of actually getting a voucher. Congress set aside $1 billion to fund the initiative. The rebate program ends November 1, or when it runs out of money. The cost of administering the program comes out of the same funding. The Free Press reports, "After administrative costs of up to $50 million to run the program, that still leaves $933 million in the pot" for new vouchers.
Kicking Tires notes, "If it takes one day to get $17 million in Clunkers vouchers, the program will run out of funds in 54 days, more than a month before the Nov. 1 end date for the program."
It could be, however, that the first day's activity will be the peak, as those who had been waiting to take advantage of the program acted quickly.
If you're interested in the Cash for Clunkers program, check out our Cash for Clunkers page. If you're ready to buy, contact local dealers. For the latest news on the program, check out Cash for Clunkers news.
