Cash For Clunkers Stimulates Auto Sales

by Heather

Cash For Clunkers, a government program designed to take older, less fuel efficient vehicles off the road and replace them with brand new, more efficient autos has worked. The program, which offers up to $4,500.00 in rebates to consumers that own qualified trade-ins, has spurred auto sales across the nation.

This is obvious, even to the casual observer. The car lots in my local neighborhood have less stock on the showroom floor, and a few more cars seem to be gone everyday.

The “Cash For Clunkers” program has already exhausted 1 billion dollars and the Senate is expected to vote for an additional 2 billion dollars in funding for the program.

Ford Motor Company (NYSE:F) recently reported improved sales, with this new program partly responsible. Ford stock is currently trading for $8.21 a share.