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Chevrolet Silverado

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Chevrolet Silverado
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On July 1st, 2009, the Car Allowance Rebate System (CARS) or Cash for Clunkers officially began. The purpose of the program was twofold: to help stimulate the economy, while also reducing the number of vehicles on the road with low fuel efficiency ratings. The program ended on August 24th, 2009 when the $3 billion appropriated to it was completely exhausted.

Consumers were given a voucher for $3,500 or $4,500 for trading in an old vehicle to put towards the purchase of a new car or truck. If the new vehicle had a combined fuel economy that was at least 4, but less than 10 miles per gallon (mpg) higher than the traded-in vehicle, the credit was $3,500. If the new vehicle had a combined fuel economy value that was 10+ mpg greater than the traded-in vehicle. the credit was $4,500.

By examining the top-line results, Cash for Clunkers has to be ruled a success. The program resulted in almost 700,000 dealer transactions, and fuel efficiency of traded in vehicles was 15.9 mpg while the fuel efficiency of the purchased vehicles was 24.9 mpg. But Cash for Clunkers is a great example of the law of unintended consequences as there were secondary impacts that need to be considered before the program can be ruled a success:

*Cash for Clunkers pushed sales that were going to occur in the near future forward by a couple of months. According to a study by Edmunds.com, only 125,000 of the 690,000 purchases would not have been made without the incentives, or in other words, over 80% of the purchases would have occurred even if Cash for Clunkers had not provided the $3,500 and $4,500 vouchers. Two University of Delaware economists determined that the program had a net cost of $2,000 per vehicle transaction and total costs outweighed benefits by $1.4 billion.

*The program reduced the supply of inexpensive vehicles. By forcing all traded-in vehicles to be destroyed the supply of inexpensive vehicles available to lower and middle class households was greatly reduced. This reduced supply in turn caused an increase in price for similar vehicles available for sale, thus forcing households to spend more for used cars.

*Japanese and Korean automakers gained market share from the Big Three (General Motors, Ford, and Chrysler). Toyotas accounted for almost 20% of the total sales, while Hondas represented 13% of the total sales. Seven of the top 10 models sold were foreign cars or trucks with the Ford Focus, Chevrolet Silverado, and Ford F-150 being the only models manufactured by US auto companies to crack the top 10. The top 3 purchased vehicles were the Toyota Corolla, Honda Civic, and Toyota Camry.

*The fuel efficiency gains were not as great as expected.. A University of Michigan study found that the program improved the average fuel economy of all vehicles purchased by 0.7 mpg in August 2009, or a little over 3%. What also needs to be considered is that if something becomes cheaper (in this case, gas in the form of improved mileage) a consumer will invariably consume more of it, thus offsetting the fuel economy gains.

*Destroying the clunkers' engines reduced the availability of replacement parts, making them more expensive. Typically, the car's engine is the most valuable component of a scrapped car, but the salvage or scrap facilities were prohibited from selling any powertrain components from the scrapped vehicles.

The Cash for Clunkers program proved the axiom that if you give someone money for something they were going to buy anyway, they will buy that object sooner. The program also provided a real world example of the broken window fallacy as consumers were paid to have their perfectly functional vehicles destroyed. Money that these consumers spent on new vehicles could not be spent on other potentially more beneficial purchases.

Lowell Bike is a co-founder of http://www.myautotips.com/, a leading provider of information and advice through all levels of the automotive lifecycle. With over 8 years of experience in the automotive information field the author is in a unique position to provide money and time saving tips for car buyers, sellers, and owners. Visit http://www.myautotips.com/ for great advice today!

Chevrolet Extended Warranty - Chevrolet Silverado Extended Warranty

The Chevrolet Silverado is an terrific vehicle, but just one repair can cost you thousands of dollars. The best way to protect yourself from expensive Chevrolet Silverado repairs to get a Chevrolet Extended Warranty for your vehicle. A Chevrolet Silverado Extended Warranty will save you hundreds or even thousands of dollars the next time your automobile needs repairs. Learn more about Chevrolet Extended Warranty - Chevrolet Silverado Extended Warranty

Click Here To Get A Free Extended Warranty Quote for Your Chevrolet Silverado

Even the highest quality Chevrolet vehicles will eventually run into mechanical or electrical problems. Unfortunately, this usually happens once Chevrolet's warranty is no longer there to protect you from the high cost of automotive repairs. If you aren't protected, just one major problem with your Chevrolet Silverado can cost you thousands of dollars. An extended warranty will protect you from the significant cost of repairing these problems and gives you peace of mind knowing that your Chevrolet Silverado will be taken care of in the event that expensive repairs are required.

*** Protect Yourself From Expensive Car Repairs - Get A FREE Online Quote for an Extended Warranty for Your Vehicle in Seconds! ***

With so many automobile recalls and problems currently in the news, it is more important than ever to protect yourself and your Chevrolet Silverado by considering getting an extended warranty. It takes just a few seconds to receive a free, no obligation quote for a Chevrolet Extended Warranty, which can save you hundreds or even thousands of dollars in the near future. Get a FREE quote on Chevrolet Silverado Extended Warranty today!

About the Author

Shaun is an expert on auto insurance. His articles will help you save money and purchase the best insurance policy possible for your car & your family.

How do you get the warning chime to work in a 2005 chevrolet silverado?

i have a 2005 silverado 4.3 W/T and one day the warning chime just stoped working! its kind of an inconvience because i have the information screen on the dash that warns me of problems with the truck but i dont pay attention to it when im driving and the chime gets my attention! could it possibly be a blown fuse?

could be a fuse but I would first check the owners manual and see what it says about the chime, also it should still be under warranty so if you can't figure it out take it back to the dealer.

Top 20 vehicles for April
Trucks dominated in April, with the Ford F-Series and the Chevrolet Silverado selling the most vehicles last month. April 2010 % change 2010 YTD % change 1. Ford F -- Series 40,946 42.4% 143,985 30.5% 2. Chevrolet Silverado 29,618 12% 102,098 8.9% 3. Honda Accord 29,311 0.3% 94,890 12.3% 4. Toyota Corolla / Matrix 27,932 50.7% 91,672 17.3% 5. Toyota Camry 27,914 10.2% 96,509 4.3% 6. Honda Civic ...

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