Donating a Car Programs Have Enormous Benefits for Everyone
In an effort to help the dying auto industry, a program was set up by the US government whereby you could donate a car; it was affectionately referred to as a "Cash for Clunkers" initiative. There was a lot of money involved, as people could receive up to $4500 for each of the cars they chose to donate. The "donating a car" program in Canada would only net you about $300 so there was quite a large incentive for US citizens to take advantage of this offer. As a result, the program was ended far earlier than planned due to popularity.
The aim of this program was in part to help get older and more polluting automobiles off the roads, but mainly it was about attempting to fire up the US automobile industry. With the Wall Street crash in late 2008, and the following recession, the automobile industry took a gigantic hit as shoppers were abruptly faced with unemployment and the loss of their homes; the prospects appeared quite bleak indeed. As a result, larger purchases, like investing in a new automobile, fell significantly as very few people were prepared to take a chance on spending so much cash.
The "Cash for Clunkers" plan did invigorate the US vehicle manufacturing industry, and it also helped the automobile industries in other regions of the world. Japanese imports experienced a substantial increase as customers took the cash they received from their car donation, and used it to shop for imported vehicles. Production of a number of US automobiles that were being manufactured across the border in Canada also experienced an increase with the increased demand and this led to a boost to the Canadian auto industry too.
The auto industry nowadays is very much interconnected globally with other nations, so if you donate a car to one country's car donation program, you're basically supporting the auto industry somewhere else as well. Even industries related to the auto industry, like shipping and delivery companies saw a boost in their sales, as the demand for more cars in such a short period of time meant a demand for their services as well.
The end of the "Cash for Clunkers" program in the States proved that deciding to donate a car had an impact on the success of the auto industry, not only in the States but in other countries as well. It was a good example of how the world has changed in the last several decades, and that positive change in one nation can truly result in positive change in several other ones as well. - 21396
The aim of this program was in part to help get older and more polluting automobiles off the roads, but mainly it was about attempting to fire up the US automobile industry. With the Wall Street crash in late 2008, and the following recession, the automobile industry took a gigantic hit as shoppers were abruptly faced with unemployment and the loss of their homes; the prospects appeared quite bleak indeed. As a result, larger purchases, like investing in a new automobile, fell significantly as very few people were prepared to take a chance on spending so much cash.
The "Cash for Clunkers" plan did invigorate the US vehicle manufacturing industry, and it also helped the automobile industries in other regions of the world. Japanese imports experienced a substantial increase as customers took the cash they received from their car donation, and used it to shop for imported vehicles. Production of a number of US automobiles that were being manufactured across the border in Canada also experienced an increase with the increased demand and this led to a boost to the Canadian auto industry too.
The auto industry nowadays is very much interconnected globally with other nations, so if you donate a car to one country's car donation program, you're basically supporting the auto industry somewhere else as well. Even industries related to the auto industry, like shipping and delivery companies saw a boost in their sales, as the demand for more cars in such a short period of time meant a demand for their services as well.
The end of the "Cash for Clunkers" program in the States proved that deciding to donate a car had an impact on the success of the auto industry, not only in the States but in other countries as well. It was a good example of how the world has changed in the last several decades, and that positive change in one nation can truly result in positive change in several other ones as well. - 21396
About the Author:
A significant percentage of the population makes charitable donations on a regular basis. One of the means of doing so is to make a used car donation if it is old and beyond repair. You can actually get a pretty good tax break for doing this. Find out more about how this works at our site on Donating Cars.
posted by X - Men @ 5:35 AM
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