Cash for Clunkers Kicks off Soon

President Obama’s program to get old, high-polluting cars off the streets and replaced with newer, more fuel-efficient vehicles, affectionately nicknamed “Cash for Clunkers,” will kick off later this month. The federal government has invested $1 billion into a program that could provide some help to the auto industry and be of great benefit to the environment.
 
Although the program has been criticized for its strictness in defining which cars qualify as clunkers, analysts are confident that plenty of people will take advantage of the program. Those who own qualifying vehicles will be eligible to trade in their clunker and get a $3,500 or $4,500 voucher for a more fuel-efficient vehicle made within the last four years.
 
The auto industry is holding its breath that the Cash for Clunkers program will provide a much-needed boost to sales. Car sales have dropped from 16 million cars sold in 2007 to the expected sale of 10 million cars this year, so dealers have a vested interest in hoping that people actually make the effort to trade in their old vehicles.

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