US Cash for Clunkers program destroyed 680,000 vehicles

In 2009, the Obama administration implemented the $2.85 billion Cash for Clunkers program under the Consumer Assistance to Recycle and Save Act. The initiative provided motorists with $3,500 or $4,500 toward fuel-efficient vehicles in exchange for surrendering older, drivable cars and trucks for destruction.

While the program aimed to boost automobile sales during the Great Recession, it resulted in the permanent removal of approximately 680,000 functioning vehicles from the road. About 85% of the surrendered vehicles were trucks, SUVs, or light trucks that were often still operational. This mandatory destruction prevented these vehicles from being resold as inexpensive transportation.

Recent data indicates a scarcity of affordable used vehicles. According to Cox Automotive, cars priced below $15,000 accounted for only 15.7% of used-vehicle dealership inventory in September, a decrease from 19.4% the previous year. The average used-vehicle listing price reached $27,235 in September, the highest level since December 2022.