Cash for Clunkers Destined for Success

Kicked off yesterday, Cash for Clunkers, or officially known as CARS - Car Allowance Rebate System, is already drawing high interest among Americans who are willing to trade-in their old car and purchase a new and greener vehicle. Approximately 16,000 auto dealers are participating in the program, with the $1 billion scheme approved by the government likely to provide vouchers for about 250,000 vehicles.

The programme is set to expire on November 1 but only if the money hasn't been used by then, The Detroit News wrote today. NHTSA spokesman Rae Tyson said yesterday that 69 buyers already agreed to junk their old vehicles, receiving vouchers worth $294,000.

Honda sold 19 vehicles as part of the scheme, while Toyota delivered 18 cars, including a Scion. American manufacturer Ford delivered only nine vehicles in the first day of CARS.

"We need to see if it the program is successful. We think it will be," Transportation Secretary Ray LaHood was quoted as saying by the aforementioned source. "We're going to monitor it every week. We're going to know pretty quickly if we are going to run through the billion dollars or not."

Auto manufacturers selling cars in the United States have already announced their models eligible for the scheme, with most of them emphasizing their high expectations regarding the new government campaign.

“There has been no other time in recent history when such an extensive national buyer incentive program has been implemented, and Kia Motors is pleased to provide consumers with a comprehensive selection of vehicles that are praised for their style, quality, value, fuel efficiency and long list of standard safety features," Kia said in a statement issued in late June.