August 27, 2009

5 Most Popular Cash For Clunkers Auto Purchases

The government’s popular Cash for Clunkers program has resulted in a surge of vehicle purchases, with small cars and hybrids ranking among the top ten best sellers. A list was recently compiled and released by the National Transportation Safety Administration, which also operates the program. The list tallied the top ten vehicle purchases under the Cash for Clunkers program. According to the National Transportation Safety Administration, the Ford Focus was the most popular vehicle purchased during the Cash for Clunkers program. Other vehicles included in the top five (listed in order) are the: Toyota Corolla, Honda Civic (including Hybrid models), Toyota Prius (including Hybrid models), and the Toyota Camry (including Hybrid models). reports that the vehicle most often traded in under the program was the Ford Explorer SUV. It is speculated that many of those former Explorer owners stayed loyal to Ford, thus purchasing the fuel efficient Focus. Overall it appears as though consumers are purchasing more fuel efficient vehicles, typically as a result of higher gas prices and longer commutes. The average fuel economy of the new vehicles purchased under the Cash for Clunkers program is 25.4 mpg.

Despite the extensive fuel efficient vehicle purchases under the Cash for Clunkers program, cheap auto insurance may not be available for those particular models. Of course, certain factors determine an individual’s auto insurance rate. These factors include: driving record, type of vehicle, average mileage, state of residency, and rates for each state. Aside from the aforementioned factors, and despite the fact that auto insurance rates have dropped significantly, fuel efficient cars may be more expensive to insure than their gas guzzling counterparts. The reason for this stems primarily from the fact that these vehicles are newer, therefore replacement parts may be harder to locate. Additionally, most fuel efficient vehicles tend to be smaller and lighter in comparison to other vehicles on the road. In certain instances, a lighter, smaller vehicle may endure more damage in the event of an accident. Passengers traveling in the vehicle could suffer greater injuries as a result of the vehicle’s compact size. Each of these factors is taken into consideration when determining auto insurance rates.

Lastly, many newer and smaller vehicles are targeted for theft because their expensive parts yield a substantial profit. However, if you own one of the top five purchased vehicles noted on the Cash for Clunkers list, you may still qualify for cheap auto insurance. As previously mentioned, your driving record and other factors will determine whether or not your auto insurance rate is as affordable as your fuel efficient vehicle. When shopping for auto insurance, it’s best to compare rates and look for the cheapest auto insurance available.