INTRODUCTION
Announced at a difficult time for consumers and automakers, the U.S. "Cash for Clunkers" program attracted significantly more attention than anticipated. The program offered up to a $4,500 rebate on the purchase of a fuel-efficient vehicle that would replace a gas-guzzler. Consumers rushed to auto showrooms across the country to take advantage of the program. Only days in to the program the projected payout exceeded the initial budget of $1 billion; and, despite another $2 billion pledged by U.S. Congress, the program used up the entire fund and had to conclude two months ahead of schedule. In the end, the program helped nearly 700,000 consumers exchange vehicles in only 55 days.
The efficacy of the program has been at the center of public interest. In particular, there is concern that consumers may have been taken advantage of the subsidies and purchased vehicles they would have bought anyway.
See full Article.
Posts
