Politics

Updated October 29, 2009

Report: Cash for Clunkers Auto Program Cost Taxpayers $24,000 Per Vehicle

by  

FOXNews.com

A report conducted by the automotive information firm Edmunds.com found that of the nearly 690,000 vehicles sold under the program, only 125,000 of the sales were incremental.

American taxpayers doled out $24,000 per vehicle sold under the government's "Cash for Clunkers" auto program, according to a study released Wednesday.

The report, conducted by the automotive information firm Edmunds.com in Santa Monica, Calif., found that of the nearly 690,000 vehicles sold under the program, only 125,000 of the sales could be credited directly to the Cash-for-Clunkers program.

The rest of the sales would have happened anyway, despite the government program, the report said -- raising questions over its effectiveness.  

The report also said that the average cost for a vehicle in August 2009 was only $26,915 -- minus an average cash rebate of $1,667.

Cash for Clunkers -- officially known as the Car Allowance Rebate System -- was a $3 billion program intended to provide economic incentives to Americans to purchase a new, more fuel efficient cars when they traded in an older, less efficient vehicle.

The program was touted for giving a boost to auto sales while increasing the sales of more fuel-efficient vehicles.

Click here to read the full report.

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