Cash for clunkers: Top 10 most popular new cars and trade ins

The Car Allowance Rebate System (CARS) program concluded last night, in theory, though dealers have been allowed to submit claims today, as well. Ongoing computer challenges hampered the claims process, leading to the official extension to 8 p.m. EDT this evening. As the final figures are being tallied, the National Highway Traffic Safety Administration (NHTSA) has provided a preview of the most popular vehicles purchased and traded in through the "cash for clunkers" program.

The latest data shows an average 15.8 mpg fuel economy on traded-in models and 25 mpg on the new, replacement vehicles – an overall 9.2 mpg increase.

Thus far, 84 percent of trade-ins under the program are trucks and 59 percent of new vehicle purchases are cars. The most-popular new cars bought through the program all offer very good fuel economy, contributing to the significant fuel savings.

Top 10 cash for clunkers purchases

1. Toyota Corolla
2. Honda Civic
3. Ford Focus
4. Toyota Camry
5. Hyundai Elantra
6. Toyota Prius
7. Nissan Versa
8. Ford Escape FWD
9. Honda Fit
10. Honda CR-V AWD

The above links point to model overviews, available to online subscribers.
 
Top 10 cash for clunkers trade ins

1. Ford Explorer 4WD
2. Ford F150 Pickup 2WD
3. Jeep Grand Cherokee 4WD
4. Jeep Cherokee 4WD
5. Ford Explorer 2WD
6. Dodge Caravan/Grand Caravan
7. Chevrolet Blazer 4WD
8. Ford F-150 Pickup 4WD
9. Chevrolet C1500 Pickup 2WD
10. Ford Windstar

 
This list highlights the potential safety improvements the program has brought with the newer cars. While many of the clunkers traded in were larger, none of the top-10 offered electronic stability control side-curtain air bags, or tire pressure monitoring systems. All were standard features on most of the top 10 new purchases under the program. (Read: “Cash for clunkers: The safety advantages with new cars.”)

Have you traded in a clunker? Share your experience in our cash for clunkers forum

—Jeff Bartlett

Comments

[NHE]

So, it looks like the Japenese car companies were the big winners in this deal...

[CyCarConsulting]

Where have all the clunkers gone?

Apparently not that far. Dealers are holding on to them until they are reimbursed. Some have not disabled the cars yet for fear of being stuck without the money. So then what? If they end up at the yards, there is a 6 month period to strip the car of its saleable parts, excluding the drive train, before crushing the rest.
If the dealer is stuck with the car, and it runs decent, it will be remarketed ,or wholesaled at a dealer auction ,for much more than the salvage value.
From what information I can get ,I estimate that less than 1% of the cars were sent to the scrapper so far.

[Kathleen]

If 8 out of the 10 top purchased cars through this program were foreign, is that considered a success? Unless, I have been in a cave (in which sometimes I wish I was) I was not aware that GM and Ford owned Honda, Toyota, Nissan and Hyundai. Why is the government nor the media commenting on this?

[Digimer]

@Kathleen

First off, all the Japanese and Korean companies have US factories. Second, you want a free market, then you have to deal with it. If the American domestic companies wanted to dominate a list like this, then they should have focused on efficient, reliable and safe cars in the smaller car market. They ignored it, and now the market has spoken.

It's the Big 3's fault, period. There is no more story to it than that.

[Gary.L]

Ironically, I traded in the #3 most traded-in for the #3 most purchased. While the Kia seemed to offer a better deal - at least at first blush - I could not buy foreign, while using ~25% of the payment in the form of US Gov "git" (I've paid for that "gift" MANY times over, through the years, and will continue to do so in the years to come), but I feel it is now entirely up to us, private citizens to do the government's job and combat the export of American jobs. Ford has pulled its own weight through the entire latest mess, and it deserves my business.

[Josh]

Funny thing about this whole cash for clunkers program is that i just bought a Ford F150, that was the 2nd most traded in vehicle.

[RedWings]

The problem is is that the government is skewing these results. The number one seller is actually the Ford Escape. The Government separates cars by drivetrain. If you count cars by nameplates alone, 6 of the top 10 are American. http://www.autonews.com/article/20090824/ANA06/308249953/1254

The government is skewing the data to put smaller cars at the top when in actuality. C4C resulted in people buying more trucks just more fuel efficient then their old ones.

[Rich C]

We bought a new car, a Honda CR-V and we did not use the CARS program... Our trade in was too new even though it only got 12 MPG; and so what if we did? Honda cars have higher domestic content than most Government Motors, Fiats, or Fords so I helped even more people although maybe less Union people than if I had purchased a "domestic" car. We did consider a Ford but based on the long history we have with Honda, the reviews, and the fit and finish, we chose to buy Honda again.

[Donna W]

We checked into trading in our clunker with about 200,000 miles on it (a 1986 Olds Cutlass) and who knew way back when we bought it in 1985 that we were buying such a fuel efficient car. It didn't qualify, but our 2003 Ford F-150 did, not that we wanted to get rid of it.

[Mark Spearman]

Around Central Ohio, they edged the price of new cars up and would not deal at all. From the deals I've seen friends and family make, the gave the clunkers away. I also know a few that got caught up in the scam and traded in vehicles worth more than $4500.

I kept my 3/4 ton 92 Chevy 2WD. At 250k, it runs great and at a rated 17/21 mpg, no other trucks would have met the requirements. What does it tell you when a 92 3/4 ton truck gets better mileage than almost all small trucks in 2009?

[Connie M]

We've never owned an American car, but we made sure we bought from one of the Big 3 this time. We wanted a Ford Focus, but dealers had run out of inventory. My husband and I almost went with the Nissan Versa, but opted for a Chevy Aveo instead. Our clunker was a 2000 Mitsubishi Montero Sport with over 182,000 that got 17 mpg. With this cash for clunkers program we were able to get a new car, which we needed, and double our MPG.

[Jeff N]

Thanks to those who attempted to buy American. Since there is government/tax-payer money involved, I think there should have been a requirement to buy American or only vehicles that contained > 50% US-made parts. I am normally a free-market person, but the US government stuck their nose in on this one so the US should get the maximum benefit. Now let's see the effect on the low-price used car market which is the primary supplier of vehicles to very low income people. The unintended(?) consequences will be interesting to see.

[Sara]

I wondered from the beginning of the whole CARS deal why the writers of the law didn't make a clause that either made it mandatory to buy a domestic brand or at least give you a little bit more $$ for buying domestic.

Seems so silly to not have that clause.

[donatecarusa]

You may have heard of the government's new "Cash for Clunkers" program but do you know all the facts?

Friday, August 21, 2009 Update: Informed sources are projecting that the total $3 billion directed to Cash for Clunkers will be fully expended by Monday and the program will be winding down at that point. Some projections indicate that 700,000 new car sales, including a Cash for Clunkers component, are on the books or will be by Monday. There's some talk of more funding for Cash for Clunkers, but with congress out of session until after labor day, that can not be immediate. Naturally, it will be some months before the car dealers themselves are fully reimbursed for qualified Cash for Clunkers purchases through the program.

Proponents call it a win win for the environment and the economy and the charities we represent indicate that a slow down in car donation proceeds (if any) has not been as severe as some had initially projected. Volume of car donations for us has been flat and a modest 7.5% decline in gross resale prices of donated cars seems to be the average.

Cash for Clunkers (the Car Allowance Rebate System act, also known as CARS), was recently passed by congress and signed by President Obama. It is an innovative new program designed to get gas-guzzling cars off the roads and motivate people to drive more fuel efficient cars. It is intended to replace older vehicles with new ones that are safer and pollute less. Supporters claim it will help jump-start auto sales and the U.S. economy, while also providing environmental benefits and increasing energy security.

How it works: to be eligible for $3,500 or $4,500 worth of federal money (some terms vary for trucks).

* Your vehicle must be less than 25 years old on the trade-in date
* Only the purchase or lease of new vehicles will qualify you for the federal funding
* Trade-in vehicles must get 18 miles or less per gallon
* Vehicles must be in driving condition, plus registered and insured for the full year prior to the trade-in
* The bill is intended to be a boost to struggling car dealers and anybody who wants a new compact or hybrid, and to help the environment, and who wouldn't support that? Unfortunately, this legislation won't help everyone. Here are some reasons that will prevent many people from taking advantage of the Cash for Clunkers program:

The gas mileage rates are so low that only very poor mileage cars like SUVs or trucks will qualify. Those who do qualify have to buy or lease a new car to get the money; just getting rid of an old junker gets you nothing with Cash for Clunkers. If the value of your trade in is more than $3,500 or $4,500 then you don't get any additional money from the government.

The Cash for Clunkers legislation, as originally written, covered "approved" clunker vehicles for new car purchases from July 1st to November 1, 2009. For technical reasons re-determining what cars would qualify, the start date was subsequently delayed from July 1st to July 24th. Car dealers and legislators were all very surprised at the huge initial response such that by midnight, July 30th, the program was halted given the projection that the initial one billion dollars of funding had been all used up by vehicle purchases that are already in the system. The House of Representatives acted very quickly and the next day, July 31st (the last day of the congressional session prior to the August recess) passed a two billion dollar refunding of Cash for Clunkers. The Senate, with the same extraordinary speed, passed the same bill, Thursday, August 6th barely a couple hours before they also went on summer recess at midnight. Now, President Obama has signed it and the program can be restarted very soon. Stay tuned to this site for breaking news on this topic. Some proponents suggest that even with the additional two billion dollars in funding that the program will again run out of money long before November and that additional funding should be provided.

Fortunately, if you don't meet all the criteria for getting the Cash for Clunkers payout, you still have other good options for getting rid of your old car. Vehicles that don't qualify for Cash for Clunkers are still ideal car donations. When you donate cars, trucks, vans, RVs, boats or even real estate you get rid of your unwanted property, help a non-profit of your choice, and itemizing taxpayers get a write-off.

Hundreds of charities do invaluable work all across the country, and car donation funds are an important part of their revenue stream. Pete Palmer, co-founder of The Vehicle Donation Processing Center, Inc., states that his company "assists more than 400 charities who do great work and depend on car donation to pay for it. We handle it for them and in so doing we've put more than sixty million dollars in their hands -- net-net, after all expenses were paid. Every penny of that sixty million dollars went to charities for their charitable missions."

Now during tough economic times many people want to take advantage of every opportunity for a little extra income, however some Cash for Clunker qualifiers might find the extra dollars are outweighed by other benefits of donating a vehicle to a charitable organization via one of the reputable car donation organizations.

* You will feel good about helping a worthwhile cause
* Some car donation companies offer free vehicle pick-up
* Many will take any vehicle, running or not
* Plus the tax write-off for itemizing taxpayers.
* And to thank you for deciding to donate your car to charity, instead of participating in the Cash for Clunkers program -- when you donate your car to one of our 400+ fine charities -- just tell your operator you'd like the $300 Free Grocery or Gasoline Rebate when you make arrangements with us for the free car donation pick up.

A vehicle donation political coalition is reaching out to Congress to get a bill passed that makes car donation even more attractive. The passage of U.S. House of Representatives Resolution 571 will help the situation by reinstituting some of the tax benefits for vehicle donation to charities which were withdrawn by Congress in 2004. Accompanied by the economic downturn, those limitations have resulted in an average 52% reduction in vehicle donations according to industry sources. Currently, taxpayers are only allowed to deduct the fair market value up to a maximum of $500 or what the charity sells the car for, whichever is greater. Under HR 571 taxpayers would be allowed to ascertain and deduct the Fair Market Value up to $2500 for their car donation, and the appraised value over $2500. As of the end of June this bill is showing promise and has been co-sponsored by twenty Representatives from both sides of the aisle and every region of the country.

It's important for the public to realize that Cash for Clunkers is not the best answer for everyone. Learn more about Car Donation and charities it supports.

[GO]

This data for the top 10 purchased cars is flawed. The government data was broken down by model, then by engine (and/or other attributes) – which is not a standard practice. For instance, V6 Escapes and I4 Escapes were counted separately. Additionally, Focus sales were broken down to FWD and AWD models... but there's no such thing as an AWD Focus. I think edmunds.com has detailed information.

Normalize the information, and the 10 most purchased vehicles are dominated by domestic models, and lead by the Ford Escape and Focus. Also, the Chevy Silverado, and Ford F150 make the list, while others are bumped off.

[No Mo Foowds]

Ford, GM and Chrysler are dead men walking. Its too late and its the management and equally the UAW's fault. The Japanese cars in the 70's were weak, cheap and well cheap. They (Nissan/Datsun, Honda and Toyota) learned they have to produce a quality car to gain market share in the US. Meantime, the Big 3 were so fat dumb and happy, they ingnored the fact that the Japanese cars now added a sixth digit to thier odometers. Why, because Hondas, Toyotas and Nissan owners were getting 200 and even 300 thousand miles out of the "rice burners". The Big three didn't put a sixth digit in their cars until the 1990's. The Big 3 banked on Americans believing that a car over 100,000 miles was used up and needed replacing. Too little, too late. The UAW won't work for the prevailing wage. The Big 3 can't make a profit when they are paying twice as much with a huge army of retirees banging down pensions. Don't get me wrong, they are owed and deserve that pension, but the time has come for the UAW to go away. The South (TN, AL, MS) builds more cars at half the wage as UAW run plants. This is life. Deal with it! Only the death of the UAW can save the American auto idustry.

[Bob V]

So your top 10 purchases list showed 4 foreign car manufacturers and 1 US Car manufacturer....how did that save America Jobs ?

By this simple list we just gave 80% of OUR 4 billion in tax dollars we did not have to foreign companies. Another federal government fiasco.