Recently, we have seen numerous offers and deals rolled out by the car automakers to boost the sales of new cars. They have launched deferred payments, lease-extensions, and relief programs to help the customers during the pandemic. Despite every effort and initiative by car manufacturers customers aren’t investing their money in buying new cars.
The stay-in home order and nationwide lockdown disrupted the business of car dealerships and sales departments are facing a huge decline which has also affected the economy. To fluctuate the economy and boost new car sales.
The car automakers are looking forward to the program as it was launched earlier in the year 2009 might it make its way again in the year 2020.
The new “Cash for Clunkers Program” can provide relief to the automakers will be helpful for them in the long run.
What is Cash for clunkers program?
Cash for Clunker program is an initiative by the US government that provides financial help to car owners to sell their old vehicles, or trade-in and buy new cars with maximum fuel-efficiency. To qualify the credit in this program, the vehicle should be less than 25 years old and delivers fuel efficiency of fewer than 18 miles per gallon, and it can be in scrapped condition but driveable.
Cash for Clunkers Program in 2009
The program has an official name which is known as Car Allowance Rebate System which has other famous name Cash for Clunkers. The program was operational for 29 days which has a $3billion program amount where customers receive $4500 from the US government for trading their old car with poor fuel efficiency into a new car with a decent fuel economy.
Purpose of Cash for Clunkers Program
- The main purpose was enforcing this program into the market to stimulate the business in the automotive market and the initiation of new buyers into the market.
- The program was benefitting the environment concerns as old cars pollute the environment and deliver low mileage.
- It promotes getting rid of the old vehicle and trade-in for your new cars which enhances and improves the air quality and less polluted roads.
Why did Automakers demand the program?
The Coronavirus Pandemic has disrupted the automotive industry which leads to major automakers like Ford to demand the Cash for Clunkers program to be back in 2020. Ford is convincing the US government to initiate the program as it will help the industry to cover back their loss due to pandemic.
The Cash for Clunkers program will stimulate the growth of the automotive industry also it will contribute to the economy through increased sales. It can hundreds or thousands of people jobs as well as help them to survive this tough time. The car automakers like Nissan, Subaru, and Ford have suspended the production of new vehicles which shows the need for starting the program again in 2020.
Cash for Clunkers Supports Automakers
The program will support Auto dealerships as all the dealerships as wholesome have millions of people working in their different lines of business. The program can contribute to the job security of various employees also it acts as a long time financial support.
The US Government’s response towards the program can uplift the automotive industry also it has an increased sale. It can also help automakers to restart their factories and production plants as the stay-in home has been revoked by the government in many cities which leads to getting back to work. In this way, the employee would not lose their jobs and companies won’t pursuing the downsizing. It will be the best initiative by the US government to start Cash for Clunkers again in 2020 to support automakers.
Is there Cash for Clunkers Program in 2020?
Yes, there will be cash for clunkers program soon to safeguard automakers and keep them in business to boost the sales. The program will save the automakers from bankruptcy.
Does Cash for Clunkers program pay buyers?
Yes, Cash for Clunkers provides buyers some specific amount of money which helps them to get rid of their used car and trade-in for a new car.