Cash For Clunkers
“Cash for Clunkers”
Tina Darling
Econ 101
Cash for Clunkers The government tries to implement 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 older cars off of the road. 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 vehicles from participating dealers when they trade in less fuel efficient cars or trucks. Under the CARS Act a process was established in which dealers had to register in order to participate in the program. By having dealers register for this program it helped to create standards that the Department of Transportation used to determine which disposal resources were eligible to receive and destroy the trade-in vehicles. The program also sets the standards that trade-in vehicles and new vehicles must meet in order for purchases to qualify for assistance under this program. It also helped to maintain a set of rules and procedures that were required to be followed by consumers, dealers, disposal facilities and others. Lastly, the rules and requirements that were set-up by DOT present 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 that was 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 (Copeland & Kahn, 2011).
The primary reason for the CARS program was to provide temporary fix for the downturn of the economy at that time, while also reducing fuel consumption and emissions. The evidence suggests
Tina Darling
Econ 101
Cash for Clunkers The government tries to implement 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 older cars off of the road. 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 vehicles from participating dealers when they trade in less fuel efficient cars or trucks. Under the CARS Act a process was established in which dealers had to register in order to participate in the program. By having dealers register for this program it helped to create standards that the Department of Transportation used to determine which disposal resources were eligible to receive and destroy the trade-in vehicles. The program also sets the standards that trade-in vehicles and new vehicles must meet in order for purchases to qualify for assistance under this program. It also helped to maintain a set of rules and procedures that were required to be followed by consumers, dealers, disposal facilities and others. Lastly, the rules and requirements that were set-up by DOT present 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 that was 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 (Copeland & Kahn, 2011).
The primary reason for the CARS program was to provide temporary fix for the downturn of the economy at that time, while also reducing fuel consumption and emissions. The evidence suggests
References: Copeland, A., & Kahn, J. (2011, July). The Production Impact of "Cash-for-Clunkers": Implications for Stabilization Policy. New York: Federal Reserve Bank of New York Staff Reports. Retrieved March 2015, from https://online.ivytech.edu/bbcswebdav/pid-23876071-dt-content-rid-61451029_1/courses/ECON101-NAH-H2-201430/New%20York%20Fed%20Cash%20for%20Clunkers%20Study.pdf Robillard, K. (2013, October 30). Brookings: Cash for Clunkers Was A Lemon. Retrieved from Politico: http://www.politico.com/story/2013/10/brookings-cash-for-clunkers-program-barack-obama-administration-cars-stimulus-99134.html Smith, M. (2012, December 11). Cash for Clunkers Program 's Negative Effects. Retrieved from Tricities: http://www.tricities.com/news/opinion_columns/article_1ec4ccc4-4350-11e2-8145-0019bb30f31a.html