Well, the honeymoon's over. According to a new report by J.D. Power and Associates, the end of the U.S. Car Allowance Rebate System (CARS) -- the "Cash for Clunkers" program -- has resulted in a return to the status quo.
Specifically, compact cars held 28% of the market in August, when consumers could receive substantial rebates for buying fuel-efficient vehicles. In September, with the program no longer in effect, compacts now hold only 19% of the market. Premium vehicles and large pickups have returned to the levels they held prior to the rebates.
Which goes to show you a number of things. People say the environment is important, but only to the point that it doesn't personally affect them. Gas is expensive, but it obviously isn't expensive enough to make people change their minds. And most importantly, the rush by the Detroit Three to put as many tiny cars onto their dealer lots as possible -- whether to satisfy the letter writers or the government, or both -- could turn out to be the most expensive error they've made in a long time.
