August 8th, 2009
03:37 PM ET
5 years ago

Analysts predict billions in benefits from 'Cash for Clunkers'

WASHINGTON (CNN) – The "Cash for Clunkers" program will continue with a $2 billion supplement that some analysts say could provide a boost of billions of dollars more as it reverberates through the economy.

Critics, however, say the program merely shifts consumer spending from one area to another.

President Barack Obama on Friday morning signed the bill extending the program.

The program provides consumers a cash rebate of up to $4,500 when they turn in older, gas-guzzling vehicles and buy newer, more fuel-efficient ones.

Congress passed the $2 billion expansion after reports that the original $1 billion earmarked for the program would soon run out. According to some estimates, the total of $3 billion in the Cash for Clunkers program could result in an $18 billion boost to the overall economy.

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Filed under: Cash for Clunkers
soundoff (44 Responses)
  1. honduranboy

    best money spent thus far!!!!!!
    This administration really got this one right.

    August 8, 2009 04:08 pm at 4:08 pm |
  2. Anonymous

    The Right offers complaints and never solutions, that's why they won't be entrusted anymore. So much for conservatives.

    August 8, 2009 04:12 pm at 4:12 pm |
  3. Simmy

    "Critics, however, say the program merely shifts consumer spending from one area to another."...........

    Critics, however, said President Obama couldn't win RED states......Let's give it time, and see what happens...But so far, so good......

    August 8, 2009 04:22 pm at 4:22 pm |
  4. tigerakabj

    Great post to the user Simmy.

    Look at those "critics" now, down in Florida, Missouri, Arizona etc. paying and/or enticing the weak-minded/ignorant/angry folk to act like hooligans throwing a temper tantrum.

    Anyway, the economy is showing signs of recovery, which I'm sure will make the Fox News crowd lose it even more.

    August 8, 2009 04:39 pm at 4:39 pm |
  5. Jennifer

    This program is destroying small businesses. I'm an Obama supporter but he didn't think this one through. All of us small buy here pay here used car lots are suffering from this program! Auctions are affected, used car prices & values have been destroyed as have sales. The impact of this program on the small business used car lot owner is devestating. I thought Obama was trying to help the little guy. Instead he is helping the big guys & putting us out of business. It's not solving problems, just shifting them to different people-from the giants & CEOs to the little guy just trying to pay his bills. I'm very angry & disappointed in this program & Obama for supporting it. I voted for him because I believed in him & now I feel stabbed in the back & forgotten by him.

    August 8, 2009 04:41 pm at 4:41 pm |
  6. Fan of Common Sense

    This cash-for-clunkers program is one of the stupidest things the administration has done so far (and that is saying something!) . In a year or two, all of these people in these little economy cars are going to trade them in for the gas guzzlers they really want. This is a perfect example of what happens when the government tries to manipulate and control the free market for the "betterment of society." Stupidity and waste results........everytime.

    It's funny how we talk about taxpayer money as if it was money that just came out of thin air or was growing on trees somewhere. All of this so-called "stimulus money" (which is what the clunker program is supposed to be) is money that is going to have to be PAID BACK.

    August 8, 2009 04:43 pm at 4:43 pm |
  7. alvino

    I think we should find out what McCain and Boehner think, and then do the opposite. That will ensure success.

    August 8, 2009 04:48 pm at 4:48 pm |
  8. Lilarose in Bandon, Oregon

    There are always critics.

    No matter, there will be lots of really happy people, at least for awhile.

    Three billion dollars worth of happy people.

    That has to account for something.

    August 8, 2009 04:50 pm at 4:50 pm |
  9. Splat!~

    Stimulate the economy AND reduce dependence on foreign oil, why would we want to do that? The Right has a much more common sense solution!

    DRILL BABY, DRILL!~

    August 8, 2009 04:55 pm at 4:55 pm |
  10. jpspec

    There is a term called "big ticket" items. These are products that have a high price tag and also are only purchased once every 5 or 10 years. Now the cash for clunker program is attracting people who would normally buy a car during their normal cycle. As a result, we will see a large increase in car sales, short term, and then a huge decrease thereafter. Bottom line: Just postponing the the unsolved economic problem. Jobs, jobs, jobs.

    August 8, 2009 05:07 pm at 5:07 pm |
  11. jpspec

    There is a term called "big ticket" items. These are products that have a high price tag and also are only purchased once every 5 or 10 years. Now the cash for clunker program is attracting people who would normally buy a car during their normal cycle. As a result, we will see a large increase in car sales, short term, and then a huge decrease thereafter. Bottom line: Just postponing the the unsolved economic problem. Jobs, jobs, jobs.

    When I submitted my comment, I received a message that said that I have duplicated my comments. Gee that is great as someone else agree with me..

    August 8, 2009 05:09 pm at 5:09 pm |
  12. Zero.

    Clunkers in NYC, need a bigger NYC. When a boat is not big enough, you dont climb on board...

    August 8, 2009 05:09 pm at 5:09 pm |
  13. No Hillary = No Obama

    Cash for Clunkers should be extended to Congressional Clunkers and we should be paid to vote the clunkers out of office staring with Nancy Pelosi.

    August 8, 2009 05:12 pm at 5:12 pm |
  14. Texas

    Mr. FAN of commom sense, gee what of the stimulus money that W doled out to all. Did tht do anything for the economy on a scale as this one is doing? What about him spending as much as he wanted to on a war that we should never have been in, or should have pulled out a long long time ago, what of all tht billions and billions of dollars that he spent there without putting it on the budget for any American to know?
    HOw in the world do you even know what the buyers "really" want. Some of us can't stand the big clunkers that are on the road, but yet you porport to say that you know that people aren't really buying what they really want. What a dimwitted statement. Keep gravitating to that 30% of this country. The rest of us will move on.

    August 8, 2009 05:15 pm at 5:15 pm |
  15. redlineblueline

    "All of us small buy here pay here used car lots are suffering from this program! "

    Jennifer – may I suggest a little read up of "An idiots guide to English"

    August 8, 2009 05:22 pm at 5:22 pm |
  16. pat c

    this is great for the economy an at the same time helps the consumer get a great deal. this is win-win no matter how you look at it. the poor old republicans just can not stand the fact our president has done yet another thing right to help the middle man. one of my friends that had been laid off at a dealership was called back to work so i know at least one citizen that is happy. HE NOW HAS A JOB thanks to president obama.

    August 8, 2009 05:23 pm at 5:23 pm |
  17. MaryanneAZ

    This program's success has given me renewed confidence in the economy. For the first time in months, I have tapped my resources to buy several postponed items and even added some frivolous purchases to the mix. All cash, of course. It only takes a small sp.ark to get a f.ire going!!!

    August 8, 2009 05:26 pm at 5:26 pm |
  18. HJA

    This is a joke. They said it waould get gas guzzlers off the streets I saw an ad today from GM. Full size trucks and full size SUV's. And they qualified! What a pile of BS.

    August 8, 2009 05:33 pm at 5:33 pm |
  19. georgio

    It high noon in my banker..keep underestimating this President and he will keeping winning this policy bills. It is nOt great news today because some predicted that the unemployment would be up on Friday..even some network which I am not going to name here predicted the bad news yesterday in the morning!. The health care polls are now swinging up favoring the President in just few days when many thought the health care bill was doomed to fail...this is NO news!. Remember this words: when the economy improves..this President will not get credit from the crtics..they will say the economy was going to improve anyway!..when health care passes , they will say it will add to deficits but they will not mentioned long term benefits!. I just found out that Gov. Palin has injected his son by name in the health care debate now..after saying that the families should be off limi now should I mentioned my cousin who has the same problem that Mrs Palin son has to make my point in this health care debate but who cares about my nobody cousin!!!!!!!. Yes, go ahead disrupt this town meeting..but health care will pass even with 51% democrats in the senate. These Democtrats are NOT stupid to repeat what former President Clinton suffered with health care again!. Polls will go up and down but if you stand for something you will always come through!

    August 8, 2009 05:39 pm at 5:39 pm |
  20. Walter L Moring

    How dam stupid can you be.? Do you think for a minute that the car dealers are going to not make a killing. And you are dumb enough to just add another 15 to 20 thousand financd debt to you aready loaded credit situation. Think about it, you are literally being shoved into a trumped up deal to buy a new car. You would get likely four thousand trade in anyway if you get ready to trade, so where's the big savings , the dealer is going to give you all kinds of friendly allowaces anyway and there you go , another 15 thousand financed and the dealer just made a bundel,Oh by the way your"CLUNKER" ain't gonna go to waste. Thre's always an angle.

    August 8, 2009 05:46 pm at 5:46 pm |
  21. Doug

    What's next? Cash for old refrigerators? Cash for old computers? Cash for old televisions? When does it stop?

    August 8, 2009 05:48 pm at 5:48 pm |
  22. roger s

    smoke screen for a auto manufacturer / dealership bailout. this did nothing but deplete more Americans savings, and handout to auto companies and dealerships thanks to the taxpayer . . . . who is paying for this...... your kids!

    thanks Obama – socialism is coming our way

    August 8, 2009 05:51 pm at 5:51 pm |
  23. W.MORING

    Has anybody stopped to think what 1 Biullion dollars would do if given to the Veterans Administration, Or 1 Billion dollars to fund Social Security forever, or 1 Billion dollars to all the Police Departments. ??
    Funny , I don't hear any answers but I do read all about us fighting 2 wars when the rest of the world is at peace.Anybody have a good answer?????

    August 8, 2009 05:58 pm at 5:58 pm |
  24. Steve (the real one)

    We can look at these fro two different angles:
    1. This is another government handout or
    2. This government is returning hard earned tax money to some of its citizens.

    While I will not participate in CARS (no more car payments for me, thank you), this seems to be working well! Hopefully, the people buying can actually afford this but with credit tight and tougher to come by, I wouldn't worry too much about that! I will say all this spending is not sustainable! Something is going to have to give and soon!

    August 8, 2009 05:59 pm at 5:59 pm |
  25. No Buy Here Pay Here or Check N 2 Cash

    Sorry Jennifer but the President can't make everyone happy (buy here pay here) are usually for people that have not so great credit and I think it's a rip off my friend brought a car from buy here pay here and the interest rate was sky high and she had to make payments bi weekly, My car is a 2005 her car is a 1999 and we have the same payment I pay mine by the month she pay hers bi weekly, they also need to get rid of all these check advance, check and go etc. you write a check for cash when you get paid you have to pay them back, your check is 450.00 you owe the check company 400.00 that will leave you with 50.00 so what do you do, write another check over over again

    Rip Off

    August 8, 2009 05:59 pm at 5:59 pm |
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