The cash for clunkers program bill had been signed by President Obama and passed by the U.S Congress with definitely a noble intention. The aim of the program was to give a boost to the economy by elevating car sales as well as reduce environmental pollution by keeping the old cars off road. A similar program had been introduced in Germany this year which turned out to be immensely successful resulting in skyrocketing sales of new cars. This program in U.S.A has lately been the topic of much debate.

Let us take a look at the chief merits and demerits of the U.S cash for clunkers program systematically to arrive at a logical viewpoint.

Pros or advantages of the program relating to individuals as well as the entire community

For an individual, $3500 or $4500 credit incentive means saving on a huge amount of money for purchasing a new car. Buying a new car means you will save a lot on fuel or gas. Cutting down on repair and maintenance costs means, saving not only money, but lot of your other hassles as an owner. Keeping your old car off the road and using a brand new car also proves your concern for the environment.

The advantages and benefits that can be enjoyed by the auto dealers and the community at large are no less pronounced. The auto dealers will have increased sales. In fact customers who would not have been otherwise inclined to make a purchase will do so now to grab the benefits of the program.

The upper as well as the middle income group people with the capacity to get adequate credit for a car loan will be in a position to offer a good amount of down payment. The nation's oil consumption will be lowered on account of the use of fuel efficient cars.

Introduction of modern sophisticated cars usually means fewer numbers of automobile accidents as well as injuries compared to the old cars without the same safety standards. Added to this, the modern environment friendly designed cars will decrease exhaust emissions that were common with old cars.

Demerits relating to the cash for clunkers program

For an individual going for a new car by swapping one's old car increases financial burden in the form of insurance for the new car. In near future after the old car market gets heated due to decrease in supply, your old used car might be of greater value than the cash voucher that you will be getting through the program. An artificial situation of unsustainable auto sales boom may be the result of this program. Crushing of older automobiles will result in hard to find and more expensive auto parts. Those companies specializing in restoration and building parts of old vehicles will receive a setback.

Every scheme brings with it certain advantages as well as disadvantages. It is upon the individual's choice to either go for the program or not after weighing the pros and cons.