If you have ever had to deal with a junk car, otherwise known as a clunker, then you know how much of a hassle it can be. Clunkers are old, dirty, damaged, and all around beat up cars that provide little to no use. Chances are your junk car does not even run and disposing of it would be a pain. You may recognize the term “clunkers” and recall the days of government car buying, but those days are over. If you want cash for clunkers, then what options do you have?
Why was Cash for Clunkers Started?
In 2009, the United States faced one of the biggest financial recessions of all time. For a number of reasons, businesses were forced to close down and people faced dire financial situations.
Then the United States Government provided a bailout to the auto industry for over $80 billion. The automakers were seen as “too big to fail” because of how many jobs were at risk. Fortunately, the two companies recovered and paid back the bailout loan and investments in full.
The government followed up this bailout with a program to stimulate the auto industry, called the Cash for Clunkers Program.
The Cash for Clunkers Program
In 2009 following the financial crisis, the United States Government implemented the Car Allowance Rebate System (CARS) but became widely known as the Cash for Clunkers Program. This program was a $3 billion dollar roll to get old junk cars off the road and encourage people to buy new cars. The outlay for the program was fully spent within only 29 days, so the program was definitely utilized.
In hopes to stimulate the car buying industry, the government provided these funds to car dealers to ramp up the car trade in process. Clunkers could fetch up to $4,500 from the government depending on multiple factors.
In addition to trying to sell more cars, this cash for clunkers program provided a great opportunity to get old cars with low MPG or bad fuel economy off the road. Since cars and trucks are responsible for atmosphere pollution due to their emissions, the Cash for Clunkers program ultimately benefited the environment as well.
Did Cash for Clunkers Work?
Depending on who you ask, this could be answered multiple ways. For starters, cash for clunkers was a $3 billion program while the GM and Chrysler bailout was over $80 billion. American citizens were quick to point out the discrepancy between the dollar amounts feeling that the auto industry got the better deal.
As for automakers, the program was successful by any realistic metric. It got car buyers into dealerships when they had not been buying new cars due to the recession. By facilitating the recycling of thousands of vehicles, both the environment and the supply of materials for carmakers was improved. Now that GM and Chrysler are back to functioning on their own, the program was ultimately a success.
Get Paid Cash for Clunkers Today
If you are curious about the clunker program or you have a clunker of your own to sell, then worry not. Although the cash for clunkers program is long over, we pay cash for clunkers every day!
Once you accept your instant offer, one of our trusted clunker buyers will contact you to set up a pick up date. When that day arrives, the hauler will tow your junk car away for free and pay you cash for clunkers on the spot.