The entire Cash for Clunkers program cost a total of
$3 billion, offering car owners with gas guzzlers to purchase a new
car with up to $4,500 in monetary incentives. The program --
aimed at boosting the economy and getting older, less fuel-efficient
cars off the road -- didn't have the economical impact as expected by
some numbers, states Edmunds.
to Edmunds, “Nearly 690,000 vehicles were sold during the Cash
for Clunkers program, officially known as CARS, but Edmunds.com
analysts calculated that only 125,000 of the sales were incremental.
The rest of the sales would have happened anyway, regardless of the
existence of the program.”
"Our research indicates that
without the Cash for Clunkers program, many customers would not have
traded in an old vehicle when making a new purchase," added
Edmunds.com Senior Analyst David Tompkins.
If true, the
$24,000 per vehicle paid by taxpayers is $3,000 less than the average
cost of a new vehicle purchased during the program in August 2009:
Statements from Edmunds have angered
White House officials, with Edmunds defending itself by saying
the government is "shooting the messenger."
"faulty analysis suggesting
that the cash for clunkers program had no meaningful impact on
our economy or on on overall auto sales. This is the latest of
several critical 'analyses' of the cash for clunkers program from
Edmunds.com, which appear designed to grab headlines and get
coverage on cable TV," according to the White House. "Like
many of their previous attempts, this latest claim doesn't withstand
even basic scrutiny."
The White House claims Edmunds
didn't take "beneficial impact" from fourth-quarter Gross
National Product into consideration when compiling its report.
Furthermore, the government said its program helped boost both local
and the national economy, creating new jobs that were being pulled
away from the U.S.
After the program ended, the auto industry
a post-clunker sales drop, though sales are slowly expected to