Clunkers program suffers from popularity

• Published August 03, 2009

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The federal government’s “cash for clunkers” program is off to a rocky, but popular, start.

Just as the $1 billion program to pay car owners to trade in their older vehicles for more fuel efficient new cars was about to begin, the U.S. Environmental Protection Agency recalculated mileage rates on 100 models.

About half of the miles per gallon estimates went up and about half went down. The result was some unnecessary consumer confusion.

The federal government also underestimated the popularity of the program, and Congress nearly suspended it last week pending an infusion of more money.

Logic suggests the mileage ratings for each and every vehicle should have been finalized before the program was publicized and owners of older vehicles were encouraged to participate.

Turns out, the tweaking of the numbers has left some vehicle owners out in the cold.

EPA said the changes stemmed from a double-checking of its fuel efficiency ratings on more than 30,000 makes and models built since 1984.

The program is designed to stimulate car sales and steer vehicles with an EPA city-highway combined rating of 18 mpg off the road by offering new car rebates of $3,500 to $4,500. New cars must have a mileage rating of 22 mpg or better to qualify for the program.