Cash for Clunkers promoted more car leasing and sales than previously reported
Last year the U.S. government introduced a program that offered cash for older, less efficient vehicles in a bid to both reverse the auto industry's sagging sales and promote the usage of more energy efficient cars. It proved to be highly successful, resulting in more than 690,000 dealer transactions. While the program resulted in a boon for the auto industry, a new study is revealing that the Cash for Clunkers initiative may have actually been more successful than previously reported.
Maritz, an automotive research firm, used its New vehicle Customer Study (NVCS) to study the impact of consumers who selected new trucks and
cars for lease or purchase during the implementation of the Cash for Clunkers program.
The research suggested that the initiative spurred consumers to buy or lease more than 542,000 fuel-efficient vehicles during its run, shattering previous estimates of 125,000 and 346,000 vehicles.
"Our findings not only provide strong evidence that many more vehicles were sold as a direct result of the incentive program than were previously estimated, but they also largely debunk the myth that Cash for Clunkers mortgaged future car and truck sales," said Dave Fish, Maritz's vice president. "In fact, the program resulted in sales of vehicles to people who don't normally buy them."
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