Cash for Clunkers: Appliances Program

The original Cash for Clunkers scheme, which was called CARS (Car Allowance Rebate System), proved such a success to the auto market, that there are those hoping to have the same kind of scheme for appliances. It seems that people are holding on to their appliances much longer than ever, as consumers have much less to spend.

According to a recent article on huffingtonpost.com, Scott Stringer, the Manhattan Borough President has written to Dr. Steven Chu, the Energy Secretary in the hope of creating a Cash for Clunkers appliance scheme for America. He hopes that they will consider creating a rebate program for appliances, one that mirrors the recent scheme for the auto industry.

Stringer has proposed that the Cash for Clunkers for appliances will offer a $300 rebate for consumers who wish to trade in their old appliance. If this scheme were to go ahead, then we could see many consumers scrapping their old refrigerators for those that have been approved as Energy Star efficient. This also counts for air conditioners and dishwashers.

Huffingtonpost.com concludes that if just 5 percent of households in New York participated in a Cash for Clunkers scheme for appliances, then setting aside $45 million in rebates would help to generate $180 million worth of sales for retailers in the area. There would also be a dramatic reduction in the carbon footprint.