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

Talking Headways Podcast: City Tech with Rob Walker

Author Rob Walker on how technology has progressed transportation policy in the last decade.

November 21, 2024

One Hidden Reason Why Your State DOT Isn’t Building Protected Bike Lanes

"Proven safety countermeasures" might sound like a wonky engineering term, but it could hold the key to unlocking money to save lives.

November 21, 2024

Thursday’s Headlines Peek at What’s After Pete

The outgoing transportation secretary reflects on the Biden administration's legacy.

November 21, 2024

Opinion: Why I’m Hopeful About Vision Zero, Even Post-Election

"We all know that change is hard, especially at a time when the nation seems so divided. But keeping our loved ones safe is a universal goal."

November 21, 2024

Wednesday’s Headlines Stop Being Polite and Start Getting Real

A new transportation secretary, successful transit referenda, and more in today's headlines.

November 20, 2024
See all posts