When the economy went downhill, the federal government approved the CARS program as a way to both stimulate the failing automotive industry as well as reduce our overall negative impact on the environment. Frustratingly, though, some people defrauded the government through Cash for Clunkers, which cheated other citizens out of this helpful program.
With the Car Allowance Rebate System, the government appropriate several billion dollars to help people purchase new, more fuel-efficient vehicles. The government set up regulations in order to make sure that people used their CARS credits for new cars better than their old clunkers. Cash for Clunkers received a huge amount of interest, and the federal funding ran out in about a month. Even after additional funds were appropriated for CARS, they were quickly used up as well. Cash For Cars Sydney
Originally, Cash for Clunkers allowed people to trade in specific older vehicles in order to receive a $4,500 credit. They had to put this credit towards a newer, more fuel-efficient vehicle. However, because of the intense popularity of Cash for Clunkers, the National Highway Transportation Safety Administration was unable to begin processing CARS applications until after the program ended. Now, they have realized that many applications were incomplete or even incorrect. This means that dealerships and individuals defrauded the government.