You Aren’t The Only One Benefiting From The “Clunker” Program

Seat 850 SpiderThe federal government’s Cash for Clunkers program also known as the Car Allowance Rebate System or CARS was so popular that it ran out of money too quickly, and needed another funding amount.

In this program, the new car purchased had to achieve ten more miles to the gallon than the car that was traded in.

This plan was put in place to:

  1. Help the ailing car industry,
  2. Help with auto pollution rates, and
  3. Help the purchaser obtain a more reliable car.

It offered eligible owners rebates of up to $4,500.00 depending on the car being purchased and other factors.

Because of this program, rather than continuing a dismal decent, car sales have spiked to their highest rate since September of last year.

The ‘Cash for Clunkers’ program has had far reaching effects that benefited not just the car industry and the clunker owners; it also was a big boost to the auto insurance industry. They have had a large influx of new policies taken out by these new car owners.

By the time the program ended, more than 700,000 vehicles had been sold under it by dealers across the United States.

This large influx of new cars to be insured gave the insurance companies opportunities to market their products and services to the new owners. This has been a very welcome boost to an industry that has been suffering due to increased medical expenses as well as rising insurance claims and investments that have performed under expectations.

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