The good news is - the people have money to spend.
The bad news is, the money is most likely borrowed ... again.
Gera, of course borrowed. Those who have cash to pay for a new car don't have clunkers to trade in that was registered and insured on their name for at least one year (Rule. See cars.gov)
Jenya, you are mistaking if you think this program is for "really old cars", rule says - it has to be less then 25 y.o. and have 18 miles per gallon fuel efficiency. It could be a 2 y.o. car if you are willing to give it up for $4500