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Uncle Sam Got Suckered

The $3 billion cash for clunkers program has been one of the most popular parts of the Obama administration’s assorted (de)-stimulus efforts. Well, a new AP analysis shows that, true to form, the program didn’t exactly accomplish its mission with flying colors.

Remember the so-called environmental benefits cash for clunkers would produce by taking gas-guzzlers off the road? Looks like many Americans turned in their cars for models that have comparable or even worse fuel economy — for example, an old Ford F150 pickup truck for a new one.

Given the program’s goals, I would call that fraud.

The AP reports:

The single most common swap — which occurred more than 8,200 times — involved Ford F150 pickup owners who took advantage of a government rebate to trade their old trucks for new Ford F150s. They were 17 times more likely to buy a new F150 than, say, a Toyota Prius.

The fuel economy for the new trucks ranged from 15 mpg to 17 mpg based on engine size and other factors, an improvement of just 1 mpg to 3 mpg over the clunkers.

Owners of thousands more large, old Chevrolet and Dodge pickups bought new Silverado and Ram trucks, also with only barely improved mileage in the middle teens, according to AP’s analysis of sales of $15.2 billion worth of vehicles at nearly 19,000 car dealerships in every state. Those deals helped the Ford F150 and Chevy Silverado — along with Ford’s Escape midsize SUV — climb into the Top 10 most-popular vehicles purchased with the government rebates. The most common truck-for-truck and truck-for-SUV deals totaled at least $911 million.

In scores of deals, the government reported spending a total of $562,500 in rebates for new cars and trucks that got worse or the same mileage as the trade-ins — in apparent violation of the program’s requirements. The government said it is investigating those reports and said in some cases they were probably entered incorrectly by dealers or based on outdated fuel economy figures.

Whew! I can sleep better at night knowing the feds are going to devote more taxpayer dollars to covering up the trail — err, I mean — investigating fraud and abuse.

Now, who’s up for the federal government controlling our health-care system?

View all comments (6) |

Pingback| 11.5.09 @ 2:07PM

Twitter Trackbacks for The American Spectator : AmSpecBlog : Uncle Sam Got Suckered links to this page. Here’s an excerpt:

…for your WordPress blog. Topsy Plugin – WordPress Shortened Links Linking to the spectator.org page http://bit.ly/eyWMo info http://bit.ly/1GJGh2 info   2 tweets retweet The American Spectator : AmSpecBlog : Uncle Sam Got Suckered spectator.org/blog/2009/11/05/uncle-sam-got-suckered – view page – cached The $3 billion cash for clunkers program has been one of the most popular parts of the Obama…

Adam Smith| 11.5.09 @ 2:18PM

Is anyone surprised about this latest government FUBAR, or the attempt to cover it up?

Can't wait for the DMV Healthcare plan...

JACK| 11.5.09 @ 2:58PM

The program seemed to have two goals. One to improve fuel economy. With the low thresholds, it was not going to improve it significantly. Second to stimulate sales of new cars out of the existing inventory. It accomplished that goal. Ignoring the subject measurement of how many new sales were actually generated for the CARS program, the increased sale are irrefutable.

c. j. acworth| 11.5.09 @ 5:57PM

"the increased sales are irrefutable". Yeah, but how many of those sales were simply "stolen" from the future. Folks who otherwise would've held onto thier old vehicle for another year jumped onto the "free" money this year. The taxpayers shelled out billions to pay people to do today what they would've done on thier own tommorrow. Bad idea.

Pete| 11.5.09 @ 3:03PM

And the inevitable lull in sales will also be irrefutable.

This "program" amounted to the same thing as my dentist handing out lolipops to my kids after their appointments...get 'em used to the free stuff so they pay less attention to the fact that their skulls are getting drilled.

Stan Redmond| 11.5.09 @ 5:47PM

How did this stimulate anything? Obama took money from taxpayers and gave it to relatively wealthy people to buy new cars. There were no jobs created or "saved." The poor and jobless that Obama says he cares about weren't rushing out and buying new cars to provide a union job to an already employed union worker to a bailed out failed company (GM, Chrysler).

Just wait until it's all free.......

More Blog Posts by David N. Bass

http://spectator.org/blog/2009/11/05/uncle-sam-got-suckered

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