The Cash for Clunkers program was an opportunity for citizens to get a new car while helping to boost the economy, but many University students were left out of the equation.
The Car Allowance Rebate System was a government-funded program in which individuals could trade in their old ‘clunker’ cars for a rebate of up to $4,500 toward a new, more fuel-efficient car.
The CARS program, often referred to as ‘Cash for Clunkers,’ ran July 24 through Aug. 24 and ended in a $2.87 billion distribution of rebates for a total of 690,114 cars across the country. While Ohio claimed a little over $136 million of that, according to an Ohio Department of Transportation release, University students were not an elite group of participants, according to several area car dealers.
John Heffernan, general manager of Bowling Green Lincoln Mercury, said while some younger individuals participated, it was mostly families trading in their old clunkers.
Heffernan said many University students did not trade in their cars because program guidelines deemed them ineligible. Individuals hoping to participate in the Cash for Clunkers program were required to own the car outright and have insurance on the vehicle for one year. Another problem with the program were the eligibility requirements, both for trade-in and purchase, Heffernan said.
‘Seemed to be that they were a little too stringent on vehicles that were eligible,’ said Heffernan.
Junior Allison Walters said she would have participated in the program had she not just bought a brand new Jeep a few months earlier.
‘I thought it was a really good program,’ Walters said.
Tim Hernandez, general sales manager at University Honda, said the majority of individuals who took advantage of the program were middle-aged to older citizens. Additionally, Rachel Thayer, business manager at Thayer Chevrolet, said more University professors than students traded in their cars.
Thayer Chevrolet actually ran out of cars to sell on the lot, Thayer said.
‘We did see an increase [in business],’ she said, noting she wasn’t sure the program had anything to do with the buying surge.
Senior Simone Toney said University students probably didn’t participate because they don’t own their own cars, or the cars did not meet the specifications because they weren’t old enough.
‘I think that in order to get more people to do it, they have to change some stuff for college kids,’ Toney said.
Heffernan said Cash for Clunkers had a positive effect on business, bringing in some extra car sales.
‘We were successful with the program; some customers got some good deals,’ Heffernan said.
Some area car dealers ended the program on a bittersweet note.
Hernandez said while the program temporarily boosted sales, business has slowed down since its end last Monday.
‘Do I think it did any good for future economy? I don’t think so,’ Hernandez said.
Heffernan said he believes a program like this would not be better if given a second go-around.
‘The market should be a free market; I don’t think they need to create demand,’ Heffernan said.’