New information released from the government and private sources may give us a final analysis for a well intended program by the Feds (aren't they all?) that to be kind, had both good and bad results.
The program was initiated in conjunction with the Federal Stimulus program to help a very sagging economy. The government set aside $3 Billion dollars to pay rebates on new vehicles when a old vehicle was used as a trade-in. Very few stipulations were involved other than an improvement in the miles per gallon ranging from 4mpg to 10mpg. The rebate was based on the improvement with $3500 on the low side and $4500 on the high side of the improvement.
To be fair, a dealership in El Monte, California sold 1,433 vehicles during the two months allowed at a business profit of $30 million dollars. But the program was plagued with problems according to Edmunds.com. The nearly 690,000 vehicles sold in July and August were at a cost of $24,000 per car as a direct result of the program. Edmunds stated that only 18% were a direct result and the remaining would have happened anyway. In at least 145 cases the government reported paying out $562,500 in rebates for new cars and trucks that got worse or the same mileage as the trade-ins - in violation of the programs restrictions.
The most popular trades involved new Ford F-150 Trucks and Ford Explorers. Ford was the only automobile company not to take Federal Bailout money and reported this week nearly $1 Billion dollars profit for the 3rd Quarter. Perhaps a big statement about federal non-interference and a nation founded on a free market system.
The program was initiated in conjunction with the Federal Stimulus program to help a very sagging economy. The government set aside $3 Billion dollars to pay rebates on new vehicles when a old vehicle was used as a trade-in. Very few stipulations were involved other than an improvement in the miles per gallon ranging from 4mpg to 10mpg. The rebate was based on the improvement with $3500 on the low side and $4500 on the high side of the improvement.
To be fair, a dealership in El Monte, California sold 1,433 vehicles during the two months allowed at a business profit of $30 million dollars. But the program was plagued with problems according to Edmunds.com. The nearly 690,000 vehicles sold in July and August were at a cost of $24,000 per car as a direct result of the program. Edmunds stated that only 18% were a direct result and the remaining would have happened anyway. In at least 145 cases the government reported paying out $562,500 in rebates for new cars and trucks that got worse or the same mileage as the trade-ins - in violation of the programs restrictions.
The most popular trades involved new Ford F-150 Trucks and Ford Explorers. Ford was the only automobile company not to take Federal Bailout money and reported this week nearly $1 Billion dollars profit for the 3rd Quarter. Perhaps a big statement about federal non-interference and a nation founded on a free market system.
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