A recent analysis of the Cash for Clunkers trade-ins and purchases reveals a startling contrast between Michigan participants and the rest of the nation in regards to the origin of the vehicles traded-in and purchased.
When compared to the rest of the nation, Michigan showed considerably higher loyalty to domestic products with their Cash for Clunkers purchases by purchasing 81.1 percent domestic vehicles. The national average came in at nearly half the rate of Michigan with 42.8 percent purchasing domestic nameplates.
Another staunch contrast between Michigan and the rest of the nation is apparent when considering the trade-in vehicle’s origin – 57 percent of Americans traded in a product from the Detroit Three to purchase a foreign make, but only 19 percent of Michiganians traded in a domestic nameplate for a foreign one.
Stephanie Brinley, a product analyst for AutoPacific Inc said, “We really are a whole different planet here in Michigan.” Brinley went on to explain that the differing trends in Michigan “have to do with our relationship to the automakers.”
Pointing out a key factor behind the differences, Brinley also said, “Many people rely on [the Detroit Three] for their livelihood or have family or friends who do.”
The Cash for Clunkers program featured $3 billion in federal subsidies and ran from July 27th to August 25th. The clunkers program was based on the premise of replacing older, less fuel efficient vehicles for newer and more fuel efficient models with up to $4,500 in government rebates for each trade-in. The clunkers program was also intended to help boost the US economy.
In total, Cash for Clunkers is credited for the sale of 690,000 new vehicles.
