Should Congress expand ‘clunkers’ program?
Dealers are praising the federal “cash for clunkers” program for doubling foot traffic and growing sales, but some senators are on the fence about expanding the $1-billion program by an additional $2 billion.
While some lawmakers argue that the program has been an important economic stimulus, others say an expansion would serve to unfairly benefit one industry.
We’ve heard strong support for program expansion from local dealerships, but what do you think? Should the “clunkers” program should be expanded to three times its original value?
Some clunkers details:
The Car Allowance Rebate System, as it is formally known, has generated consumer spending on new cars, taken old, inefficient models off of roads, and helped struggling car dealerships and automotive giants.
Half of all “clunkers” purchases have reportedly gone to the Big Three American automakers — Ford, General Motors and Chrysler — all of which had been struggling to improve sales during the recession.
Ford, which has reportedly made the most sales through the CARS program, has credited it for helping it post its first year-over-year sales increase since 2007, up 2.4% from last July.