Archive for August 10th, 2009

Clunkers spread the gain

Monday, August 10th, 2009

The “Cash for Clunkers” program is making money for local TV stations, says Broadcasting & Cable magazine.

Local stations have “flooded the airwaves from Atlanta to Las Vegas with campaigns urging viewers to schlep down to the dealer, luring them with catchphrases like ‘Obama-Rama’ and ‘Uncle Sam Wants Your Car.’ … Station managers describe the CARS-related advertising as somewhere between an uptick and a windfall for their outlets.”

“With the program a proven success, at least as far as car sales are concerned, and ‘Cash for Clunkers’ having become part of the national lexicon, many believe the potential ad spend from car dealers will dramatically surpass what they coughed up during the first round,” B&C  says.

The U.S. Department of Transportation’s Car Allowance Rebate System (CARS), as Cash for Clunkers is formally titled, dispensed credits of $3,500 or $4,500, depending on fuel efficiency, toward new automobiles. The program had $1 billion to give out toward the new cars, and burned through the stash in about a month. A $2 billion extension of CARS won Senate approval late last week after the House approved it earlier.