2010 Toyota Prius
Pile of junk cars
So this really begs the question, are people really into smaller more efficient cars or do they really just need the $4500 price break on new models? In Denver, where I am based, dealerships were offering not only the CARS $4500 rebate, but also matching incentives that would match the $4500 rebate as well. This means that you could take up to $9000 off the price of a new car. The real question is, if dealers have already taken in more “clunkers” than they can turn in to the U.S. Government, then who ends up holding the bag? Also, if a dealer can afford to match the $4500, then why aren’t new, modern and efficient cars priced better to cause the same stir in the market.
Bottom line—the CARS program got people into the dealerships, but will it ultimately help the auto industry? The silver lining in this is that a bunch of people, probably close to 250,000 households if you consider the number of estimated trade-ins, got a new more fuel efficient car for a good price.
Looking for more information? Then check out TheCarConnection.com's coverage of the latest Cash for Clunkers news. Also be sure to check out the latest hybrid news from AllCarsElectric.com: Hybrid Minivans?
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