Cash for Clunkers Program Exceeded Forecasts

Last year’s Cash for Clunkers program determined a greater boom on the U.S. car market than it was previously estimated, even surpassing governmental forecasts, as CNNMoney reports, citing data from a report issued by Maritz Research, an automotive market research company.

The report indicates that the program led to the sale of 765,000 new vehicles. These cars would not have been sold without the incentive scheme. The figure is more than double than the one estimated by the U.S. Department of Transportation - 346,000 units.

Government reports show that a total volume of 677,000 new car were purchased through the program. Maritz claims that 542,000 of these cars were acquired by customers who wouldn’t have bought a vehicle otherwise.

In addition to that, the program attracted 223,000 people to car showrooms - they found out that they weren’t eligible for purchasing a vehicle through the program but decided to buy one anyway.

"The results provide strong empirical evidence that CARS did not impede future sales," said Maritz vice-president David Fish, in an announcement. "Vehicles were sold to people who don't normally buy them." Maritz surveyed 36,000 people who bought a new car or truck from July to August, 2009, the period when Cash for Clunkers was available.

Out of the total number of new vehicles acquired through the Cash for Clunkers Program , 499, 365 were built in the U.S. , 90,420 were produced in Canada, 54,958 were manufactured in Japan, 11,307 were assembled in Mexico, 11,199 were produced in Germany and 3,738 were of South Korean origin.