U.S. Today – Mississippi comes in 48th for overall clunker sales
In June, the Senate narrowly overcame a procedural hurdle to fund the program. Nebraska Sen. Ben Nelson was the only Democrat to oppose it. Only four Republicans favored it: Kit Bond of Missouri, George Voinovich of Ohio, Thad Cochran of Mississippi, and Susan Collins of Maine.
Michael Traugott, an adjunct professor in the University of Michigan’s political science department, said political allegiances likely had little to do with where the Cash for Clunkers program was a success. Political support for the program was largely about saving auto manufacturing jobs. That concern may have raised interest in the program among states with large labor unions, but basic economics was likely a bigger factor, he said.
“First and foremost, individuals need to be creditworthy and have an interest in trading up an older vehicle,” Traugott said. “The need for a new car probably depends on driving patterns, especially to and from work. That probably explains why states with large urban areas and public transportation are absent from the (top 10) list.”
Mike Dockendorf, general manager of St. Cloud Toyota, said Cash for Clunkers generated a lot of interest in Minnesota, particularly among blue-collar workers who otherwise might not have been in the market for a new car.
“Some regular, middle-class Americans actually got something they could use. That was a big positive,” said Dockendorf.
His dealership has put in for about 80 rebates.
“It was absolutely a good deal for us,” Dockendorf said. “We had so many models that fit the formula, and we had a lot of people that had qualifying trades – Ford Explorers and F150 trucks.”
Bob DeBoer, general manager of Action Chrysler in Jackson, Miss., tells a different story. His dealership sold only 15 cars with the Cash for Clunkers incentive, and the state, as a whole, was second from the bottom, with rebate requests of just $6.46 per driver.
“I’m sure there are a lot of people who would have loved to trade in, but in Mississippi, income and credit right now are the worst I’ve seen,” DeBoer said. His dealership was also hurt by low inventory, he said.
U.S. Today
9/5/9
Magnolia Tribune
