Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
Cash for Clunkers

As “Cash for Clunkers” Sputters, a Privately Funded Spinoff Picks Up

The U.S. DOT began signaling yesterday that it would bring the "cash for clunkers" program to an end amid growing unease from auto dealers about the government's slow pace of reimbursement and General Motors' decision to begin fronting "clunkers" repayments to its own salesmen.

new_car_dealers.jpg(Photo: AmericaJR.com)

But with auto-industry forecasters predicting a cool 1 million new sales this month for the first time in a year, dealers are loath to abandon the "clunkers" concept that has stoked Americans' desire for new vehicles -- with minor fuel-efficiency gains and expensive environmental payoffs.

A group of auto retailers have begun promoting the "Auto Stimulus Plan," a rebate system paid for by dealers themselves.

The private "clunkers" spinoff offers several features that the government plan was criticized for lacking. It allows consumers to buy used cars, and its rebates are tiered in proportion to the level of fuel-efficiency improvement that is achieved by the trade-in.

The specifics of the Auto Stimulus Plan vary based on state regulations. But a trade-in that provides 2 miles per gallon in greater fuel-efficiency would earn a rebate of 10 percent of the older car's value, and a 5-mpg improvement would earn a 20 percent rebate, according to a recent Associated Press report.

Unlike the Obama administration's "clunkers" program, which was questionably touted by the president and his allies as a boon for the environment, dealers involved in the private version make no bones about their priorities.

"[O]ur primary goal is to help consumers that don't qualify for the government's program and to stimulate the economy through improved sales, jobs, and spending," Scott Gruwell, an Arizona-based GM dealer, said in a statement today announcing that the Auto Stimulus Plan would continue despite the demise of the "clunkers" plan.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Shutdown Showdown: Trump Blames Democrats for Transit Cuts In His Continuing War on Cities, ‘Woke’

It's the second time in as many days that the Trump administration has denied funding over policies it opposes.

October 1, 2025

Marcus Molinaro Is Wrong About Chicago Transit

Local transit advocates have diverse opinions on the best ways to improve transit safety. But there's one thing most of us can agree on. Donald Trump parachuting in soldiers, in an attempt to bully Chicago into submission, is not the answer.

October 1, 2025

Advocates In America’s Deadliest Car Crash City Are Forming a Powerful Coalition

A group of Memphis advocates are uniting to challenge car dependency and unravel its devastating impacts on residents

October 1, 2025

Wednesday’s Headlines Will Tax Your Patience

RIP electric vehicle tax credits, the Trump administration's latest assault on transit, and more.

October 1, 2025

BIG ZERO: Trump Stiffs NYC Transit System in ‘Sanctuary City’ Tantrum

The federal government is denying the MTA tens of millions of dollars in public safety funding over of New York's immigration policies.

September 30, 2025

More Transit Means Safer Streets

Promoting transit isn't just a social good. It's also a tool to achieve Vision Zero.

September 30, 2025
See all posts