Will Cash for Appliances suffer a clunker hangover?

August 8, 2010 - Posted by Corey Broyles | Tags: Clunker, Clunker Hangover

A report this month from Resources for the Future looks at the stimulative effect of last summer’s $3 billion car rebate program (“Cash for Clunkers”). The report concludes that the program increased new vehicle sales by about 390,000 during July and August of 2009, with the net increase reduced to 250,000 from June to December. The difference suggests, the report concludes, “that, as intended, the program significantly shifted sales to July and August from other months.”   Will cash for appliances provide a similarly short-term shot in the arm for appliance makers? The industry has definitely seen shipments surge in recent months, following the roll out of rebates in most states. That includes a 10-percent year-over-year climb in June. Appliance retailers, including hhgregg, also credit the program with robust sales.   The appliance industry is already lobbying for an extension of the $300 million program. But even if Congress doesn’t come through, a recent nationally representative Consumer Reports poll of 1,536 homeowners suggests that clunker hangover won’t be too severe for appliance makers. That’s because the most important reason people gave for purchasing energy-efficient products for their home was to save money on their energy bills (74 percent). Only one-third (32 percent) said they were highly motivated by financial incentives, while roughly half (49 percent) cited reducing environmental impact.   Manufacturers can help their cause by producing appliances that combine high efficiency with top value and performance. Visit our appliances main page for our top picks among refrigerators, washers, dishwashers, and more.   Cash for appliances rebates are still available in 35 states and territories. Use our interactive map to check the status where you live.   —Daniel DiClerico

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