05/06/10 GAO Reviews Cash For Clunkers Program Impact On Economy

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The General Accounting Office (GAO) reports that the Cash for Clunkers Program, officially known as the Car Allowance Rebate System (CARS), did meet its objectives of helping to stimulate the economy and putting more fuel-efficient vehicles on the road. However, the GAO states in the report titled “Lessons Learned from Cash from Clunkers Program,” that the extent to which the program met its goals is uncertain. For example, nearly 680,000 consumers purchased or leased vehicles using the program’s credit, yet some of these sales would have happened anyway. The report further found that stakeholders in the CARS program reported varied experiences. The program benefited eligible consumers and that participation in the program was distributed across the country and reflected the U.S. population distribution. Representatives of scrap and salvage industries reported that the impact of the CARS program was mixed, and car companies and dealerships generally benefited from the increased sales despite some administrative challenges.

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http://www.aftermarketnews.com/Item/73404/gao_assesses_impact_of_cash_for_clunkers_program.a spx