Well, That Didn’t Last Longby Tim Manni
The Cash for Clunkers (C4C) honeymoon is over. The Federal program which provided vehicle buyers with up to a $4,500 voucher for their used “gas guzzler” managed to increase the vehicle sales rate in August to 13.7 million units — the “first year-over-year increase since October 2007,” according to Autonews.com.
However, just one month later, according to Edmunds.com, light-vehicle sales have tanked to historic lows. Their sales rate in September plummeted to 8.8 million — the lowest rate in nearly 28 years. That dismal figure ties the worst on record:
After the cash-for-clunkers program boosted August sales to their first year-over-year increase since October 2007, demand has plunged. In at least the last 33 years, the U.S. seasonally adjusted annual rate has only dropped as low as 8.8 million units once — in December 1981 — with records stretching back to January 1976.
There’s not much more to say than that. Three billion taxpayer dollars were spent to help boost vehicle sales for just one month.
Was it worth it?