NEW YORK — Consumer interest in the government’s “cash for clunkers” program to get gas guzzlers off the road has started to wane, and if the trend continues, purchase intent could return to pre-program levels by late next week, according to .
The automotive-information website said interest peaked July 29 but has fallen 15 percent since then, based on Internet-shopping purchase-intent data.
The initial $1 billion in funding for the program “was very low in relation to the size of the auto market. This created a gold-rush mentality where consumers hurried to take advantage before funding ran out,” said Michelle Krebs, senior analyst for . “With additional funding now approved, there is no longer an urgency to participate in the program.”
More than $1.03 billion has been paid out to cover the 245,384 vehicles traded in under the program, designed to replace gas guzzlers with more fuel-efficient vehicles, according to the Department of Transportation. Another $2 billion is being funneled into the program, which is slated to run through November.
Under the program, formally known as the Car Allowance Rebate System, a customer who trades in a vehicle rated at 18 miles per gallon or less qualifies for a government voucher of up to $4,500 to buy a new car rated at 22 mpg or more. The allowance goes to the dealer, which must scrap the old vehicle.
U.S. auto sales climbed in July to their highest pace in 11 months as customers rushed to showrooms amid uncertainty about the program’s future.
