Cash-for-Clunkers trade-ins account for 7% of Hyundai sales now

Hyundai became the first automaker to honor the government’s “Car Allowance Rebate System” (CARS) incentives on July 2 and the novel consumer incentive program, also known as “cash for clunkers,” accounted for 7% of Hyundai sales in its first week.

Nearly 32% of the trade-in models reported by dealerships were Ford vehicles, followed by Dodge at 23%. Lexus, Jaguar, and Mercedes-Benz are among the other brands delivered as “clunker” trades, demonstrating both the broad appeal of the government program, and the changing nature of Hyundai’s product line and buyer demographics. Hyundai’s rollout enables buyers to receive the full rebate allocated under the CARS program (also known as “cash for clunkers”) when an eligible trade-in is exchanged for a qualifying Hyundai model at a participating Hyundai dealership.

The fuel-efficient Hyundai Elantra was the most popular model purchased under the CARS program, making up 41% of sales. With manufacturer incentives and a full CARS rebate for a qualifying “clunker,” consumers can purchase a new Elantra for as little as $8,620. Sonata at 29% and Accent at 16% ranked second and third, respectively, in CARS transactions in the opening week.

Hyundai is the first automaker to extend the government incentive to consumers, accelerating its implementation by several weeks by backing dealerships with short-term cash advances as the government organizes the rollout of the program industry-wide. Under the CARS program, consumers qualify for a $4,500 rebate on the purchase or lease of new vehicles that achieve 10 miles per gallon more than a trade-in car or five miles per gallon or more than a trade-in light truck. New vehicles that achieve between 4 to 9 mpg more than a trade-in car, or 2 to 4 mpg more than a trade-in light truck qualify for a $3,500 incentive.

Thirteen Hyundai models and engine combinations qualify for the CARS incentive program, which requires passenger cars achieve 22 mpg or more combined fuel economy, and light trucks achieve 18 mpg or better combined fuel economy.

Five Hyundai models achieve 30 mpgn or more on the highway – Accent, Elantra, Elantra Touring, Genesis Coupe 2.0L and Sonata 2.4L. Hyundai ranks third in corporate average fuel economy according to the U.S. Environmental Protection Agency, so consumers will realize further cost savings by stepping into a more fuel-efficient model than they currently drive.

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