Since its inception, our organization has carefully monitored the effectiveness of Cash for Clunkers and we've been shocked by its inefficiencies
Lakewood, NJ (PRWEB) August 20, 2009
Kars4Kids, the leading national car donation program, has begun releasing the findings of its analysts in "Cash for Clunkers Watch," a regular feature at its website that examines the effectiveness of the Cash for Clunkers program.
While Kars4kids put more than 500 children through summer camp this year, there were concerns about Cash for Clunkers' impact on its on-going charity programs. "Since its inception, our organization has carefully monitored the effectiveness of Cash for Clunkers and we've been shocked by its inefficiencies," said Clifford Meth, VP of Communications. "We discovered that the federal government has only reimbursed auto dealers for 2% of the claims they've submitted through the program. Moreover, nearly 80% of the applications have been rejected for a minor oversight."
Kars4Kids analysts believe that Cash for Clunkers is likely drawing money from other consumer purchases, and that it will very likely undermine future car sales. In short, the increase in current car sales are likely borrowing sales from the future.
Kars4kids analysts further expect that within three to six months there will be a sharp increase in demand at auctions for its donated vehicles as a pronounced shortage in the used car market makes itself apparent.
Meth warns consumers to carefully consider whether or not they will be able to afford their payments after purchasing a new vehicle. He also notes that the Cash for Clunkers program will not be applicable for most cars.
To see the guidelines regarding which cars are eligible and weigh the benefits against a charity donation, Kars4Kids invites consumers to their website where the pros and cons of each are carefully delineated. "Our Cash for Clunkers Watch feature will continue to keep our donors informed of further ramifications of the program," Meth says.
For more information, 732-730-8595, ext. 108