Stimulus program Cash for Clunkers ends after month run

After $2.88 billion in government money and 690,114 vouchers for cash, Cash for Clunkers came to an end Tuesday.

Officially known as the Car Allowance Rebate System, Cash for Clunkers gave people the opportunity to turn in their “clunker” if the automobile received 18 or fewer miles per gallon.

In return, customers received up to a $4,500 rebate off their purchase of a new vehicle that got better gas mileage.

The program was put in place to get old cars off the road and encourage people to buy more fuel-efficient vehicles.

Because of the program, automotive companies such as Ford and General Motors have been able to increase production and re-hire workers who were originally laid off.

“It was a great program,” Andrew Ludwig, a Stephens Honda sales associate, said. “A lot of people took advantage of it.”

American consumers and workers benefited from this program the most, said Ray LaHood, secretary of transportation, according to a press release.

According to the White House Council of Economic Advisers, about 42,000 jobs will be created or saved during the second half of 2009 due to the increase in car production.

Indiana had a total voucher amount of about $6.6 million, which was 16th highest in the nation, according to the United States Department of Transportation.

“We haven’t gotten all our money back, but we are not overly concerned,” Ryan Richardson, Bloomington Ford sales associate, said. “Our new management staff did a very good job not taking major risks.”

Other dealers also reported problems when it came to the new program.

“It’s like anything else that’s new. You got to work out the kinks,” Ludwig said.

The role of the car salesperson was essentially flipped when Cash for Clunkers was in effect.

As opposed to having a bigger automobile inventory that salesmen could present before customers, Bloomington Ford as well as other car dealerships often ran out of cars to sell to those coming in.

Now that Cash for Clunkers has ended, Richardson said he is only partially happy.

“It was the best month we have had in a long time,” he said.