Clunker dollars double from last week
The Cash For Clunkers program in Illinois reached a total of $75 million in vouchers by Friday, well more than doubling sales in the past week, according to a government report.
The stimulus voucher program, which provides consumers up to $4,500 if they purchase qualifying new cars, reached $1.5 billion nationwide with 358,851 cars purchased.
The figures make CARS, also known as Cash for Clunkers, demonstrably one of the fastest acting and most effective of the stimulus programs so far, said Diana Joseph of Lincolnshire, and managing partner with Chicago-based Barrington Strategic Wealth Management Group.
"It has provided a needed shot in the arm," said Joseph, "As with any such program in an unprecedented time, it is hoped that enough of these will result in some level of sustainable growth."
The CARS program, which went into effect in late July, encourages consumers to trade in older, gas-guzzling vehicles for more fuel-efficient models. It likely will end when the federal stimulus money runs out.
To date, Illinois ranks No. 5 among states nationwide for the voucher dollar amount of $75 million, compared to about $33 million last week. California was No. 1 with $152 million, followed y Michigan with $80 million, New York with $77 million and Ohio with $76 million.
More than half - 54% - of the top 10 new vehicles purchased under the program - including the Toyota Corolla, Ford Focus FWD., Toyota Camry, Ford Escape FWD. and Honda CR-V 4WD - were made in the United States, according to the data released by CARS.
About 83 percent of trade-ins have been trucks. The most traded-in vehicles included Ford Explorers, Ford F150 pickups, Jeep Cherokees, Dodge Caravan, according to CARS.
U.S. Department of Transportation spokespeople did not return phone calls, but the agency issued a statement on Thursday saying consumers who want to purchase new vehicles not yet on dealer lots can still be eligible for the Clunkers program. Dealers and consumers who have reached a valid purchase and sale agreement of a vehicle already in the production pipeline will be able to work with the manufacturer to receive the documentation needed to qualify for the program, DOT said.
"The Department of Transportation is trying to make sure that everyone who wants to can participate in this wildly successful program," U.S. Transportation Secretary Ray LaHood said in a statement. "Allowing consumers to order vehicles and qualify for the rebate will expand buyers' choices and keep production lines running."