AP IMPACT: Clunker pickups traded for new pickups

WASHINGTON – The most common deals under the government's $3 billion Cash for Clunkers program, aimed at putting more fuel-efficient cars on the road, replaced old Ford or Chevrolet pickups with new ones that got only marginally better gas mileage, according to an analysis of new federal data by The Associated Press.

The single most common swap — which occurred more than 8,200 times — involved Ford F150 pickup
owners who took advantage of a government rebate to trade their old
trucks for new Ford F150s. They were 17 times more likely to buy a new
F150 than, say, a Toyota Prius. The fuel economy
for the new trucks ranged from 15 mpg to 17 mpg based on engine size
and other factors, an improvement of just 1 mpg to 3 mpg over the
clunkers.

Owners of thousands more
large old Chevrolet and Dodge pickups bought new Silverado and Ram
trucks, also with only barely improved mileage in the middle teens,
according to AP's analysis of sales of $15.2 billion worth of vehicles
at nearly 19,000 car dealerships in every state. Those deals helped the
Ford F150 and Chevy Silverado
— along with Ford's Escape midsize SUV — climb into the Top 10
most-popular vehicles purchased with the government rebates. The most
common truck-for-truck and truck-for-SUV deals totaled at least $911
million.

In scores of deals, the
government reported spending a total of $562,500 in rebates for new
cars and trucks that got worse or the same mileage as the trade-ins —
in apparent violation of the program's requirements. The government
said it is investigating those reports and said in some cases they were
probably entered incorrectly by dealers or based on outdated fuel
economy figures.

The new data, obtained
by the AP under the Freedom of Information Act, include details of
677,081 clunker trade-ins processed by the government through Oct. 16.
More than 95,000 of the new vehicles purchased under the program — or
about one in seven — got less than 20 mpg, according to the data.

The
new figures, requested four months ago by the AP, represent the first
substantial outside accounting of the clunkers program, lauded by the
White House and the Transportation Department for improving fuel
economy, stimulating sales and taking the dirtiest vehicles off the
road. The data show the average fuel economy was 15.8 mpg for the old
vehicles and 24.9 for the new ones. But plenty of consumers bought
relatively low-mileage trucks and SUVs with the help of government
checks.

"If we're looking for the
environmental story here, we're going to be disappointed," said Jeremy
Anwyl, chief executive at Edmunds.com, an analyst firm. "It might have
started out from the perspective of improving the environment, but it
got detoured as a way to stimulate the economy."

Popular high-mileage commuter cars including the Toyota Corolla, Honda Civic, Toyota Camry and Ford Focus
also were among the Top 10 most popular new vehicles bought under the
four-week program, with 105,280 of those models sold for a total of
about $2 billion.

Chris Moss of Smithtown, N.Y., traded in his 1992 white Ford F150 pickup — "it had 5 million miles on it and needed $50,000 in repairs, if you know what I mean" — for a new Chevrolet Malibu hybrid
for his wife. When he drove his old truck to the dealership's back lot
with the rest of the clunkers, "90 percent of what you saw were old
150s and Explorers," he said. Moss posted a video on YouTube of his old truck's final day, called "Rust In Peace."

The
$3 billion program, known officially as the Car Allowance Rebate
System, ran from July 27 to Aug. 25 and generally required that new
vehicles get better mileage — at least 22 mpg for cars and either 15
mpg or 18 mpg for trucks depending on class — and that trade-ins get no
more than 18 mpg. The trade-ins were required to be destroyed in
exchange for either $3,500 or $4,500 rebates.

"The
value that the customer got for a lot of these vehicles was just a
gift, no question," said Scott Pundt, sales vice president for the
Dorschel Group of Rochester, N.Y., the No. 4 dealership in the U.S.
with 592 vehicles sold under the program. "We were appraising
220,000-mile vehicles that were really rough, and they were getting
$3,500 or $4,500 for them." Four out of five old cars turned in there
exceeded 100,000 miles.

Some deals raise eyebrows:

•
In at least 145 cases, mostly involving trucks, the government reported
consumers traded old vehicles that got better than or the same mileage
as the new vehicle they purchased. The government said it was
continuing to investigate. A driver in Negaunee, Mich., traded a 1987
Suburban that got 18 mpg for $3,500 toward a new Silverado pickup that
got only 15 mpg. An Indianapolis driver traded a 1985 Mercedes 190 that
got 27 mpg for $3,500 toward a new Volkswagen Rabbit that got only 24
mpg. "It's possible some quirky deal slipped through the cracks," Anwyl
said.

• In at least 15 deals in nine states, owners of large pickups cashed in old trucks for between $3,500 and $4,500 toward new Hummer H3 SUVs that got only 16 mpg.

• A driver in Arlington, Va., traded a 1999 Ford Explorer with 15 mpg in July for $3,500 toward a new $28,000 Jeep Commander that weighs about 4,700 pounds and gets 16 mpg.

• In at least 32 deals, drivers traded older vehicles for new large trucks — including versions of Toyota Tundras, GMC Sierras, Chevrolet Silverados, Dodge Rams and Ford F150 pickups — that got only 14 mpg.

• A driver in West, Texas, earned $4,500 in July in exchange for a 1989 Chevrolet Suburban
SUV that got 14 mpg and bought a 2009 Suburban that weighed 5,900
pounds and got 16 mpg. Across Texas, seven of the 10 most common
transactions involved drivers trading old pickups for new ones.

Car-crazy California led clunker sales with more than 76,000 trade-ins, followed by Texas with roughly 43,000 and New York with nearly 37,000. In California, the Honda Civic was the No. 1 new car and no pickups ranked higher than 18th. In New York, the Hyundai Elantra was No. 1.

The clunkers program was very good for Longo Toyota of El Monte, Calif.,
just east of Los Angeles, which sold more than twice as many vehicles
under the program as any other dealership in the country, worth more
than $30 million. That sole dealership was responsible for 1,432 sales
worth nearly $6 million in clunkers rebates, mostly from its sales of
323 Toyota Camrys, 277 Corollas and 171 Priuses.

The next-best dealership was Price-Simms Inc. of Sunnyvale, Calif.,
with 672 sales of vehicles worth about $16.1 million, mostly from its
sales of 213 Priuses and 134 Camrys.

Pundt said his dealership in Rochester advertised aggressively
to consumers and operated three shifts of employees to submit claims.
"We had people in here through the middle of the night, working 2 a.m.
until 7 a.m.," he said. "The computer was so slow."