What are the Benefits of the Cash for Clunkers Program?

Question: What are the Benefits of the Cash for Clunkers Program?

Cash for Clunkers is a federal program designed to stimulate U.S. auto sales and help the environment by providing an economic incentive for consumers to replace old, low-mileage vehicles with new, fuel-efficient models that are safer and emit less pollution and fewer greenhouse gases.

Answer: Cash for Clunkers carries a number of potential benefits for a variety of beneficiaries.

U.S. automakers benefit, because the program is designed to stimulate the sale of new cars manufactured by U.S. companies.

Auto dealers across America also stand to gain from the million new cars consumers are expected to purchase as a direct result of the Cash for Clunkers program.

Consumers themselves will benefit by getting a government-funded price break that can help them exchange an old car for a new one that is safer, uses less fuel and costs less to operate.

The environment benefits—and so, by extension, we all do—because the Cash for Clunkers program will take up to a million older vehicles off the road and replace them with cleaner, safer and more fuel-efficient cars and trucks that create less pollution and emit fewer greenhouse gases that contribute to global warming.

Finally, some supporters of the Cash for Clunkers program say that increasing fuel efficiency on America’s highways will improve energy security for the United States by reducing the nation’s dependence on foreign oil.

Cash for Clunkers FAQ:

• What is the Cash for Clunkers Program?
• How Does the Cash for Clunkers Program Work?
• What are the Benefits of the Cash for Clunkers Program?
• What are the Drawbacks of the Cash for Clunkers Program?
• Who is Eligible for the Cash for Clunkers Program?
• How Much Will the Cash for Clunkers Program Cost Taxpayers?
• What Happens to Old Cars Under the Cash for Clunkers Program?
• How Long Will the Cash for Clunkers Program Last?