AP IMPACT: Clunker pickups traded for new pickups

[Ban Hammer 12,899]

WASHINGTON – The most common deals under the government's $3 billion Cash for Clunkers program, aimed at putting more fuel-efficient cars on the road, replaced old Ford or Chevrolet pickups with new ones that got only marginally better gas mileage, according to an analysis of new federal data by The Associated Press.

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it is investigating those reports and said in some cases they were probably entered incorrectly by dealers or based on outdated fuel economy figures.

The National Highway Traffic Safety Administration is still reviewing the reports, and any dealers that submitted invalid trade-ins will be directed to return the government rebate, spokesman Eric Bolton said Wednesday.

The new data, obtained by the AP under the Freedom of Information Act, include details of 677,081 clunker trade-ins processed by the government through Oct. 16. More than 95,000 of the new vehicles purchased under the program — or about one in seven — got less than 20 mpg, according to the data.

The new figures, requested four months ago by the AP, represent the first substantial outside accounting of the clunkers program, lauded by the White House and the Transportation Department for improving fuel economy, stimulating sales and taking the dirtiest vehicles off the road. The data show the average fuel economy was 15.8 mpg for the old vehicles and 24.9 for the new ones. But plenty of consumers bought relatively low-mileage trucks and SUVs with the help of government checks.

"If we're looking for the environmental story here, we're going to be disappointed," said Jeremy Anwyl, chief executive at Edmunds.com, an analyst firm. "It might have started out from the perspective of improving the environment, but it got detoured as a way to stimulate the economy."

Popular high-mileage commuter cars including the Toyota Corolla, Honda Civic, Toyota Camry and Ford Focus also were among the Top 10 most popular new vehicles bought under the four-week program, with 105,280 of those models sold for a total of about $2 billion.

Bolton, the NHTSA spokesman, said Wednesday the program "proved to be a win for the economy and the environment" because it helped financially struggling dealerships and auto manufacturers and because, under the program's rules, clunkers necessarily were replaced with vehicles that got better mileage.

Chris Moss of Smithtown, N.Y., traded in his 1992 white Ford F150 pickup — "it had 5 million miles on it and needed $50,000 in repairs, if you know what I mean" — for a new Chevrolet Malibu hybrid for his wife. When he drove his old truck to the dealership's back lot with the rest of the clunkers, "90 percent of what you saw were old 150s and Explorers," he said. Moss posted a video on YouTube of his old truck's final day, called "Rust In Peace."

The $3 billion program, known officially as the Car Allowance Rebate System, ran from July 27 to Aug. 25 and generally required that new vehicles get better mileage — at least 22 mpg for cars and either 15 mpg or 18 mpg for trucks depending on class — and that trade-ins get no more than 18 mpg. The trade-ins were required to be destroyed in exchange for either $3,500 or $4,500 rebates.

"The value that the customer got for a lot of these vehicles was just a gift, no question," said Scott Pundt, sales vice president for the Dorschel Group of Rochester, N.Y., the No. 4 dealership in the U.S. with 592 vehicles sold under the program. "We were appraising 220,000-mile vehicles that were really rough, and they were getting $3,500 or $4,500 for them." Four out of five old cars turned in there exceeded 100,000 miles.

Some deals raise eyebrows:

• In at least 145 cases, mostly involving trucks, the government reported consumers traded old vehicles that got better than or the same mileage as the new vehicle they purchased. The government said it was continuing to investigate. A driver in Negaunee, Mich., traded a 1987 Suburban that got 18 mpg for $3,500 toward a new Silverado pickup that got only 15 mpg. An Indianapolis driver traded a 1985 Mercedes 190 that got 27 mpg for $3,500 toward a new Volkswagen Rabbit that got only 24 mpg. "It's possible some quirky deal slipped through the cracks," Anwyl said.

• In at least 15 deals in nine states, owners of large pickups cashed in old trucks for between $3,500 and $4,500 toward new Hummer H3 SUVs that got only 16 mpg.

• A driver in Arlington, Va., traded a 1999 Ford Explorer with 15 mpg in July for $3,500 toward a new $28,000 Jeep Commander that weighs about 4,700 pounds and gets 16 mpg.

• In at least 32 deals, drivers traded older vehicles for new large trucks — including versions of Toyota Tundras, GMC Sierras, Chevrolet Silverados, Dodge Rams and Ford F150 pickups — that got only 14 mpg.

• A driver in West, Texas, earned $4,500 in July in exchange for a 1989 Chevrolet Suburban SUV that got 14 mpg and bought a 2009 Suburban that weighed 5,900 pounds and got 16 mpg. Across Texas, seven of the 10 most common transactions involved drivers trading old pickups for new ones.

Car-crazy California led clunker sales with more than 76,000 trade-ins, followed by Texas with roughly 43,000 and New York with nearly 37,000. In California, the Honda Civic was the No. 1 new car and no pickups ranked higher than 18th. In New York, the Hyundai Elantra was No. 1.

The clunkers program was very good for Longo Toyota of El Monte, Calif., just east of Los Angeles, which sold more than twice as many vehicles under the program as any other dealership in the country, worth more than $30 million. That sole dealership was responsible for 1,432 sales worth nearly $6 million in clunkers rebates, mostly from its sales of 323 Toyota Camrys, 277 Corollas and 171 Priuses.

"We knew it was just a matter of when, not if, we were going to get paid, so we kept our foot on the gas," Longo president Tom Rudnai said Wednesday.

The next-best dealership was Price-Simms Inc. of Sunnyvale, Calif., with 672 sales of vehicles worth about $16.1 million, mostly from its sales of 213 Priuses and 134 Camrys.

Pundt said his dealership in Rochester advertised aggressively to consumers and operated three shifts of employees to submit claims. "We had people in here through the middle of the night, working 2 a.m. until 7 a.m.," he said. "The computer was so slow."

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[Niels Bohr 72]

Lesser of two evils or maybe something else. Thought the intention was to hit two birds with one stone. But, it failed. Just like Americans are failure for not grabbing fuel efficient vehicles.

[wayno 9]

We still want the full size trucks. Only the media says nobody wants them.Where I live all the dealers are still selling them and the roads and parking lots are full of em too.

[AlHayatZween 2]

Disappointing...

Same thing here... lots of big trucks on the road. Would be one thing if they were for contractors or families or working folks...

but a lot of times it just because Junior wants a big truck and his parents buy it for him....

[wayno 9]

Not disapointing at all. There is absolutly no problem with that. I'm not a contractor. never been one either. All I've ever owned were full sized vehicles and thats all I ever will own. I like reaching my arm out and not even comming close to touching the windshield. I like a wide stable vehicle that sits high up. I like 4wheel drive. And I like a V8. Personally, I, like many others chose these type of vehicles because thats what we want. No need to justify it.

[Dennis&Dane 0]

and if you want some justification... just try stuffing a queen sized mattress inside of a prius... hehe or how about hauling 20 bales of hay...

[Niels Bohr 72]

and if you want some justification... just try stuffing a queen sized mattress inside of a prius... hehe or how about hauling 20 bales of hay...

How often do you do that? It's a waste of space to let all that vacant room of an SUV be unfilled 90% of the time. Sad.

[pedroh 21]

and if you want some justification... just try stuffing a queen sized mattress inside of a prius... hehe or how about hauling 20 bales of hay...

How often do you do that? It's a waste of space to let all that vacant room of an SUV be unfilled 90% of the time. Sad.

agree.. buying a SUV or a pickup truck for no work related purposes is a waste of space.. and a waste of gas..

[Mr. Big Dog 10,747]

If the goal of the program was to improve the overall gas mileage of America's fleet of personal vehicles, then it was poorly designed. If that's what you want to accomplish, you need to put a ceiling on the fuel economy of the new vehicles that are elgible for the credit - say 25mpg and then perhaps ensure that the trade in has a lower fuel efficiency than the purchased vehicle. I think, though, that the primary goal was to keep building - and selling - new cars.

[pedroh 21]

If the goal of the program was to improve the overall gas mileage of America's fleet of personal vehicles, then it was poorly designed. If that's what you want to accomplish, you need to put a ceiling on the fuel economy of the new vehicles that are elgible for the credit - say 25mpg and then perhaps ensure that the trade in has a lower fuel efficiency than the purchased vehicle. I think, though, that the primary goal was to keep building - and selling - new cars.

yeap.. agree.. it was just economic, not environmental.. the cap would have been a good idea, u can trade ur car for a new one, but the new one has to have this or that fuel efficiency requirements..

[NickD 202]

Looking at a letter right now I just received from my Ford dealer, offering a $3,500 rebate without a clunker trade in. All that invoice pricing from Consumers Report is BS and has been, 30% markup on the base vehicle cost, 50% markup on accessories.

All the clunker program did, is to permit the dealers to get rid of their inventory at the sticker price with the government, our tax dollar picking up the difference. This also created a shortage of used vehicles, so the prices on that remaining inventory skyrocketed making it much more difficult for people of lesser means to purchase a used vehicle.

With very new inventory on hand, shortage of used vehicles for sale, dealers are hurting again. Wonder what idiot came up with the clunker program. Wrecking yard companies are now busy.

[The_Dude 1,142]

and if you want some justification... just try stuffing a queen sized mattress inside of a prius... hehe or how about hauling 20 bales of hay...

How often do you do that? It's a waste of space to let all that vacant room of an SUV be unfilled 90% of the time. Sad.

agree.. buying a SUV or a pickup truck for no work related purposes is a waste of space.. and a waste of gas..

Not true. If you had a 4x4 truck with a 20" lift kit, 26" rims and 45" tires, you'd have an assault vehicle capable of any and all conservative fringe apocalypse conspiracy theory. Not only that, chicks dig the big truck with athe monster truck tires

[Susita 175]

and if you want some justification... just try stuffing a queen sized mattress inside of a prius... hehe or how about hauling 20 bales of hay...

How often do you do that? It's a waste of space to let all that vacant room of an SUV be unfilled 90% of the time. Sad.

agree.. buying a SUV or a pickup truck for no work related purposes is a waste of space.. and a waste of gas..

Try going grocery shopping with 2 kids (soon to be 3), your husband and then trying to fit a stroller 2 carseats (soon 3) and all your groceries in a Prius. LOL

Sorry guys I wish I could own a small car but it's not possible. What I really want is for somebody to make a hybrid minivan that I can actually afford

We walk to soccer practice though!

[pedroh 21]

and if you want some justification... just try stuffing a queen sized mattress inside of a prius... hehe or how about hauling 20 bales of hay...

How often do you do that? It's a waste of space to let all that vacant room of an SUV be unfilled 90% of the time. Sad.

agree.. buying a SUV or a pickup truck for no work related purposes is a waste of space.. and a waste of gas..

Not true. If you had a 4x4 truck with a 20" lift kit, 26" rims and 45" tires, you'd have an assault vehicle capable of any and all conservative fringe apocalypse conspiracy theory. Not only that, chicks dig the big truck with athe monster truck tires

[mawilson 2,133]

If the goal of the program was to improve the overall gas mileage of America's fleet of personal vehicles, then it was poorly designed. If that's what you want to accomplish, you need to put a ceiling on the fuel economy of the new vehicles that are elgible for the credit - say 25mpg and then perhaps ensure that the trade in has a lower fuel efficiency than the purchased vehicle. I think, though, that the primary goal was to keep building - and selling - new cars.

I believe the amount of the credit given to customers was a function of the difference in fuel

economy between the new vehicle and the trade-in vehicle. To get the max amount ($4,500),

the new car had to be 13 mpg more efficient.