How to Donate A Used Car To A Cash-for-Clunkers Program
Article By: Charles Deininger
Donate A Used Car To A Cash-for-Clunkers Program
There was a recent program in the United States where you could donate a used car and receive cash back to be used to purchase a newer vehicle. This program was called the Car Allowance Rebate System, also known more informally as “cash for clunkers. It recently ended on August 24th, and has been considered a great success by most of the people involved. The government contributed three billion dollars, which has gone back into the car industry as people have been upgrading their cars.
This was a popular program for a number of reasons. One reason why people were so quick to jump on board was because of the extra money they would receive. Generally, the amount of cash that was given for these older vehicles was a significant increase on what might have been offered by simply trading in the car for a newer one. Even the government wasn’t able to predict how much interest would be garnered in this project, and they ran out of money several months earlier than expected.
For other people who decided to become involved with the rebate system, they looked at it as a chance to upgrade. This car donation program was just the incentive needed for some people to decide to buy a newer car. Presumably their old car was still driving fine, so there was no immediate need to purchase something new, but with this opportunity, especially considering the amount of cash given, a lot of people were encouraged to go ahead and buy new vehicles.
A main factor in the decision to donate a used car to the Car Allowance Rebate System was out of concern for the environment. Obviously, vehicles cause pollution, but the newer cars being designed and made now are far more fuel efficient and therefore more environmentally friendly than even those vehicles made just a few years earlier. So even if someone had a car that was only a couple of years old, the opportunity to trade it in to the vehicle donation program meant that they could purchase a newer car and reduce their negative impact on the earth.
This program was so successful that many people who wanted to donate a used car were not able to do so, since the program was cut short. Despite putting in an extra two billion dollars to satisfy the demand, the program still ran out of money in less than two months, even though it was originally set to go for five months. Obviously, there is a demand for this kind of opportunity, and since the auto industry got a boost of business and the amount of emissions was reduced, it is likely that another similar program could be set up in the near future.
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