Cash For Clunkers: The Final Results

Final numbers are in for the so-called "cash for clunkers" program, and by most measures, the program looks like a roaring success:

• 690,114 cars were purchased under the program; two-thirds of those bought by consumers were passenger cars.
• The average rebate was $4,170.18, for a total of $2.878 billion. The rest of the $3 billion budget covered administrative expenses.
• The average new car bought with the rebates had 9.2 mpg more than the average clunker traded in, for an annual average fuel savings per driver of 277 gallons of fuel or about $720.
• The Department of Transportation credits the program with saving 42,000 jobs in the auto industry and says it expects those jobs will be sustainable because automakers have ramped up production to meet the clunkers demand.
• Notably, 690,114 older cars were taken off the road, including 450,778 SUVs and other light trucks that likely lacked electronic stability control and other modern safety equipment. The National Highway Traffic Safety Administration has estimated that making ESC standard on new cars would save as many as 10,000 lives a year. This program has taken a significant step toward that goal.

(source: Eric Evarts, consumerreports.org)