Cash for Clunkers

Topics: Automobile, Car Allowance Rebate System, Automotive industry Pages: 4 (1218 words) Published: March 31, 2014
 The government implements programs to assist individuals in living a better life. In 2009 a program called Cash for Clunkers or CARS (Consumer Assistance to Recycle and Save Act) was created to help get old makes and modeled automobiles off of the road (U.S. Department of Transportation Press Release). This program allowed individuals to voluntarily trade in and purchase vehicles under this act. This program helps consumers pay for a new, more fuel efficient car or truck from participating dealers when they trade in a less fuel efficient car or truck. Under the CARS Act a process was established by which dealers had to register in order to participate in the program. By having dealers register for this program it helped to create criteria that the Department of Transportation used to determine which disposal facilities were eligible to receive and either crush or shred the trade-in vehicles. The program also sets forth the criteria that trade-in vehicles and new vehicles must meet in order for purchases and leases to qualify for assistance under this program as well as it helped to maintain protocols and procedures that were required to be by consumers, dealers, disposal facilities and others. Lastly, the rules and requirements that were set-up by DOT set forth enforcement procedures and provisions for punishing fraud and other violations of the program requirements. The CARS program was a $3 billion U.S federal scrappage program intended to provide economic incentives to U.S. residents to purchase a new, more fuel-efficient vehicle when trading in a less fuel-efficient vehicle. Although the program officially started on July 1, 2009, the processing of claims did not begin until July 24 and the program ended on August 24 because of appropriated resources were exhausted. According to the Department of Transportation $1 billion appropriated for the system was exhausted by July 30, 2009, well before the anticipated end date of November 1,...

Cited: Matthew L. Wald (2009-08-01). "In Congress, a Jump-Start for Clunkers". New York Times. Retrieved 2009-08-01.
Thomas, Ken (2009-08-01)

Healey, James R.; Woodyard, Chris (2009-08-02)
Bill Vlasic (2009-08-26). "Toyota Tops List of Cash-for-Clunkers Winners". New York Times. Retrieved 2009-08-27.
Blinder, Alan (2008-07-27). "A Modest Proposal: Eco-Friendly Stimulus". The New York Times. Retrieved 2010-06-27.
December 1, 2011
Cash for Clunckers
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