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http://www.cleanmpg.com/photos/data/2/AmericanFlag.jpg As of 08:00 PM EST this evening, the wildly popular C4C program came to an end. (cleanmpg.com/forums/showthread.php?p=229324)

http://www.cleanmpg.com/photos/data/501/2010_Prius.jpgWayne Gerdes - CleanMPG (cleanmpg.com) - Aug. 24, 2009

2010 Toyota Prius-III – One of the most popular C4C purchases and at least two members are now proud owners.

Earlier this year, countless countries around the world including Germany, Japan, France and the United Kingdom pushed through stimulus legislation providing their domestic automobile industries relief from the global economic downturn. The US in turn finally followed the rest of the worlds lead albeit months late with its own automobile manufacturer stimulus program, unofficially known as the “Cash For Clunkers”. The program mimicked others from around the world in value but lacked teeth to move us in the direction we needed to go. That being minimize fuel consumption.

The Details

The program provided rebates to consumers who turned in their 18 mpg combined or lower rated vehicles and purchased a new vehicle with a combined fuel economy that was at least 4, but less than 10, miles per gallon for a $3,500 discount. If the new vehicle had a combined fuel economy value that was at least 10 miles per gallon higher than the qualified trade-in, the credit was $4,500.

A decent incentive to purchase at least 30 mpg ... For some.

Unfortunately, there were holes in the legislation large enough to drive an SUV through. If both the new vehicle and the traded-in vehicle are category 2 trucks and the combined fuel economy value of the new vehicle is at least 1, but less than 2, mpg higher than the combined fuel economy value of the traded in vehicle, the credit is $3,500. If both the new vehicle and the traded-in vehicle are category 2 trucks and the combined fuel economy of the new vehicle is at least 2 mpg higher than that of the traded-in vehicle, the credit is $4,500.

Although we do not yet have the final tally, the program had a dark side as pointed out above. Fortunately, most consumers did turn in their trucks and SUV’s for passenger cars, with improved fuel economy of approximately 60 percent.

Program in action

Besides the program being somewhat weak in terms of fuel efficient new car requirements, the program was severely underfunded with just $1 Billion USD that was supposed to last until November 1. In the first 6-days, the programs $1 Billion allocation was exhausted and an emergency injection of another $2 Billion was pushed through Congress. That allocation was also quickly used up and just 3-weeks later, the programs plug has been officially pulled.

Although some may call the program a waste of tax payer $’s, it did give the domestic auto industry an economic shot in the arm albeit for less than a months time.

“This program has been a lifeline to the automobile industry, jump starting a major sector of the economy and putting people back to work,” said U.S. Transportation Secretary Ray LaHood. “At the same time, we’ve been able to take old, polluting cars off the road and help consumers purchase fuel efficient vehicles.”

As a result of the program, automotive inventories were depleted and both GM and Ford are ramping up production, adding shifts and rehiring laid off workers to resupply the dwindling supply of new cars on dealership lots.

“It’s been a thrill to be part of the best economic news story in America,” Secretary LaHood said. “Now we are working toward an orderly wind down of this very popular program.”

Aftermath

A back of the envelope tally saw 5 CleanMPG’ers dump their C4C qualified vehicles for (2) 2010 Prius’, (2) Ford Fusion Hybrid’s and a 2010 Honda Insight-II. For these members at least, the number of visits and $’s spent at the pump has decreased significantly and I applaud each and every one of the new owners.

The real question for the automobile industry’s long term viability begins tomorrow as the short lived new automobile feeding frenzy has now run its course.

I dumped my 20-21 mpg Volvo for a Blizzard White P3 Level III. Heck I was filling the Volvo up once a week until I found this page and figured a few things out on how to really save gas.

Gas purchases went from once a week down to 14-17 days between fill ups. Now I dropped the amount of gasoline used to 50% of what I was using. So all in all I'm using between 20-25% of the gasoline I was two years ago.

Two years ago I was using 60 gallons a month. Then by paying attention to what I was using the car for and hypermiling some I dropped my gasoline use to 25-30 gallons a month. Then by buying the Prius I dropped my gasoline purchases to 12-15 gallons per month. :)

Good to hear C4C achieved some of the objectives. And that folks were mainly smart in buying cars instead of new FSP's.

Here's hoping some of the new cars trickle down to the less-well-off folks stuck driving FSP's in a few years.

The 60% number-is that more or less what the improvement was on average?

Around here-NOLA-in the last few days when folks were shown on lots, they were shown eyeballing 1/2 ton Chevy 4 door pickups($25,000-$30,000 vehicles).

Now I'm guessing the majority of clunker owners weren't well heeled enough to afford a $20,000+ note.A 1/2 Chevy 4 door probably requires a $450/mo note for 5-6 years.

Will you post final number(turned in mpg vs sold mpg) when they become available??

Thanks
Charlie
PS It will be interesting to see if sales tank post C4C.

Hi ALS:

___When I wrote this, I was thinking of your new 2010 Prius-III just like the pic ;)

___Charlie, as soon as I see the C4C final sales figures, I will be posting them. The Cars.gov site is about 4 to 5-days behind so I expect by the beginning of next week we should see what the program actually achieved in volume, FE improvement and FSP/Fuel miser split in detail.

___Good Luck

___Wayne

Around here-NOLA-in the last few days when folks were shown on lots, they were shown eyeballing 1/2 ton Chevy 4 door pickups($25,000-$30,000 vehicles).

Now I'm guessing the majority of clunker owners weren't well heeled enough to afford a $20,000+ note.A 1/2 Chevy 4 door probably requires a $450/mo note for 5-6 years.


Just as the gov was adding the 2 billion to the C4C program, GM announced 0% for 72mo available on any clunker deal. That stretched people's car buying dollar (relative to monthly payment amount), and that may have gotten some of them shopping for the 1/2 ton trucks. With six year financing, these truck loans will be upside down for the next four years, and maybe even five or more if gas prices spiral upward. An interest free six year loan is a tempting offer, but not when it involves being yoked to a guzzler for the next four or five years. :(

BINGO, If you look at retail gasoline prices on a chart from 2000 to present you see the upward trend. Sure there is dip or two but the trend is up no matter how you try to argue that prices are dropping.

MAXX,ALS

1/2 ton Chevys-4 doors- go for $25000-$30,000 on average, a Cobalt might go for $14000. Dealers push pickups here and everywhere else. South Louisiana is like TX pickup wise. Of course our economy is much worse than TX, so these pickups will be on some repo show in the next year or so.

During the gas peak, Suburbans-2003's only 60,000 miles-(cost $45000 new)- were going begging for $10,000 used on Ebay.Now dealers ask $10,000 for 2001's with 100,000 or more miles. I follow Suburbans because they are agood markers for gas guzzler prices and interest.
In less than a year the big SUVs/Pickups will tank again.I figure the Chinese economy is recovering which means their thirst will recover. $125 oil with $3.50 is what next summer will bring.

Yes, being tied to an unsaleable 15 mpg vehicle for 6 years isn't a smart move.
Buy used if you need a guzzler.They will be getting cheaper soon-very soon probably.

Charlie

My girlfriends brother had a FSP clunker and wanted to trade it in on a new FSP. He went to the dealer and only found models stacked with luxury options that jacked up the price beyond his threashold.

I hadn't considered that before. With the bad gas prices of last year and the economy slowing down, I imagine the car manufacturers pobably put the brakes on FSPs first.

Does this mean that dealer inventories of lower priced FSP were low even before C4C began? That would me good news for us that are frustrated by C4C to see one FSP come off the road only to be replaced by another FSP.

paratwa,

I hope, and expect from Wayne's prelim. posting, that in general decent economical cars were what replaced the clunkers. The 60% number probably meant that 15 mpg FSPs were replaced with 23mpg (combined) cars. There aren't any 1/2 ton pickups/SUVs that will even approach 23 mpg( even the very, very expensive Tahoe Hybrid is just about 21 mpg).

Of course, driven correctly, without too much effort, current 1/2 tons can average over 20 mpg. They will get almost 20 mpg in mixed city driving with just tire pressure-45 psi- and pulse and glide motor on. If you shut down at long lights, it will give you an honest 20 mpg. In pure hy driving they(the base V-8 and V-6) can all GET 24 MPG with the CC set at 65mph. This is 2wd- 4x4 drop one mpg in general.

I'm not encouraging 1/2 ton buying, but GM and Ford both produce 1/2 tons with decent FE potential.They glide forever with ATs with no engine braking to speak of.

It would be nice to see it extended with graduated FE discounts-35 mpg get $5000,30 mpg get $4000, 25mpg get $3000-draw the line at 25 mpg combined-roughly 4 cyl Accord/Camry/Malibu territory(and maybe Equinox).

Charlie