How did cash for Clunkers work?

How Did 'Cash for Clunkers' Work? Cash for Clunkers was the nickname for the government’s Car Allowance Rebate System or CARS. The goal of the program was to encourage consumers to buy new cars to keep the auto industry afloat while also trading in vehicles that were bad for the environment, otherwise known as clunkers.

Is cash for clunkers a good idea?

It’s counterintuitive, but the bad candidates for Cash for Clunkers are good cars. A well-maintained vehicle in good running condition is not good fodder for the program. Its usefulness translates into resale value, and the more you can get for your clunker, the less attractive the $4,500 rebate.

What is cash for Clunkers (cars)?

By now, you've no doubt heard of Cash for Clunkers, informally known as the U.S. Government's Car Allowance Rebate System, or CARS. The program is being billed as a no-lose situation: It's expected to help jumpstart the auto industry and fill the road with newer, more fuel-efficient vehicles in the process.