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Cash for Clunkers had two apparent goals: conserve energy by promoting fuel efficient cars and give the American auto industry a kickstart by offering enticing deals for new purchases. Now, months after the program has closed and the numbers in, the results are a bit off the mark.
For example, the Sacramento Bee analyzed the numbers for the Sacramento area by reviewing the federal data and found that “‘cash for clunkers’ translated into ‘trade that old domestic car with it’s old used engine for a foreign brand car with a new engine.’” According to the Bee, eight of the 10 most popular trade-ins in the Sacramento area during the Cash for Clunkers program were domestic cars, while all of the top 10 cars purchased were built by Japanese or Korean automakers.
The driving force behind this trend is very much in the spirit of the Cash for Clunkers program. After all, the government did urge American buyers to gravitate towards more fuel efficient vehicles. It just so happens that most Americans are under the impression that foreign engines take daintier sips from the gas pump than domestic autos. The notion isn’t completely unfounded – after all, the Big Three’s failure to adapt to a world where high price gases made fit and slim the in thing is what brought them down in the first place. But now, Chevy touts 7 models with 30 MPG or better, the 34 MPG Ford Fusion won Motor Trend car of the year and all three American auto big cheeses have rolled out hybrids and other alternative fuels. In light of this, it seems that Toyota, Honda and Nissan are riding on the momentum of their fuel efficient branding.
Across the nation, the Bee found that dealers sold about twice as many Honda motors as Ford autos and three times as many Nissans as Dodge cars or trucks. Chevy did worse – Toyota outsold it by about 500%.
Back in local markets, the Sacramento Bee singled out the Ford Explorer – an SUV that gets 15 MPG – as the most popular trade-in while Toyota Corolla – which gets 30 MPG – as the most popular local purchase. Meanwhile, GM and Chrysler failed to garner more than 100 sales in the counties that make up the Sacramento area.
Of course, these figures should be taken in context. Sacramento’s figures may be representative of the overall success of the program, but the trends shouldn’t be taken as a microcosm of the auto buying habits of Americans nationwide. For example, USA Today reports that the Ford 150, Chevy Silverado and Ford Escape all made it into the top 10 most popular vehicles purchased with government rebates nationwide. Hardly a roster marked by fuel efficient, foreign sedans.


[...] Recycling Today, the initial 180 day deadline was first decided upon based on the estimate that the Cash for Clunkers program would only bring in about 250,000 vehicle total that would need processing. However, after [...]