Has Cash for Clunkers Been a Success?

By Dave Jordan, NEWS 9

OKLAHOMA CITY -- Despite the increase in sales, it's too early to tell if Cash for Clunkers will save the American auto industry.

All of a sudden American-made vehicles are popular again, not just the gas guzzling SUVs that were once selling like hotcakes, but fuel-efficient rides that are now deeply discounted through factory incentives and a hefty government rebate.

But the success is seen as measured among one member of Oklahoma's business community.

"This is just a by-product of the first rush out there where people, the people thought they had something worth zero and now it's worth $4,500. So they're quick to get out the door," said Keith Geary, Capital West Securities.

Geary also said most of the Cash for Clunkers participants are older, thrifty people.

"It looks like at this point it has not trickled down to the populace that they had hoped for," Geary said.

But finance professor Ron Shaw said the government funded incentive is doing exactly what it's supposed to.

"This stimulus is where, no pun intended, the rubber meets the road. It put people back into vehicles and its working and that money is now back in circulation," Shaw said.

Whether the Cash for Clunkers program will keep that trend, Geary said it's anybody's guess.

"The goal is to get money circulating and things happening in the economy. That will happen to some extent. I just don't believe it will happen to the great extent that we're led to believe that it would," Geary said.

Most auto dealers have taken a wait and see approach after concerns that the program was running out of cash. Many dealerships said they're not closing anymore deals until Congress OK's more cash.

More on News9.com
More information on the government's Cash for Clunkers rebate program | 'Cash for Clunkers' Driving Cars off Dealerships' Lots | Dealing with Cash for Clunkers' Junkers | House OKs Funding Increase For Cash for Clunkers