CARS, which is better known to the United States consumer as Cash for Clunkers, started in late July and ran until the end of August. The $3 billion program sponsored by President Barack Obama allowed consumers to trade in gas guzzlers for fuel efficient vehicles to benefit the economy, as well as the environment. In return for the gas guzzler, a $3,500 to $4,500 credit was provided to go towards a more environmentally sound vehicle. There were roughly 700,000 cars purchased in fewer than 30 days. The new vehicles averaged about 25 MPG, whereas the original cars averaged roughly 16 MPG. This equates to a 58% improvement in gas mileage. There are many opposing views on whether CARS helped or hurt America’s bruised economy. The following will provide an unbiased briefing on the very different and respectfully valid takes on this hot topic. Cash For Cars Sydney
There are several different ways to break down the success of the program. From a short-term perspective, people began spending money again in the car industry. This sparked revenue for car factories and dealerships alike, which were in desperate need of help due to the dire economy. At this point, the largest and most profitable car companies were on the verge of going under and their only hope was for the economy to turn around before the government bailout money ran out. From a long-term perspective, this is costing the American tax payer a significant amount of money without a definite long-standing outcome. Will the program benefit the future of the auto industry? Will this only deepen the already significant government deficit and come back to haunt the U.S. economy?