(This post co-written by AI)
The Cash for Clunkers program removed approximately 677,081 old vehicles from the market.
This initiative, officially known as the Car Allowance Rebate System (CARS), was launched in July 2009 as part of President Obama’s economic stimulus efforts following the Great Recession. It aimed to:
- Boost auto sales by incentivizing consumers to trade in older, less fuel-efficient vehicles.
- Improve fuel economy by replacing “clunkers” with newer, more efficient models.
- Stimulate the economy by injecting demand into the struggling automotive sector.
🚗 Program Highlights
- Duration: July 1 to August 24, 2009
- Budget: $3 billion
- Vehicles scrapped: 677,081 cars
- Top trade-in: Ford Explorer 4WD
- Top new purchase: Toyota Corolla
🔧 What Happened to the Clunkers?
All traded-in vehicles were permanently destroyed—engines disabled and bodies crushed or shredded. This was to ensure they didn’t re-enter the used car market, which had ripple effects:
- Used car prices rose due to reduced supply.
- Auto recyclers benefited from salvaged parts and materials.
- Environmental impact was mixed: while fuel efficiency improved, the carbon footprint of manufacturing new vehicles offset some gains.
This program is a textbook example of policy-driven depreciation—where government intervention accelerates the removal of aging assets to reshape market dynamics.
