AP IMPACT: Clunker pickups traded for new pickups
By TED BRIDIS
Associated Press Writer
WASHINGTON (AP) - 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incorrectly by dealers or based on outdated fuel economy figures.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 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.
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.
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.''
Cash for Clunkers data: http://www.cars.gov/carsreport
(This version CORRECTS Ford 150 to Ford F150 throughout.)
11/04/09 16:53
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