BrownIndian Posted July 31, 2009 Report Share Posted July 31, 2009 NEW YORK (CNNMoney.com) -- This much seems certain about the Cash for Clunkers program: Consumers are happy to take government rebates to buy new cars. Other than that, confusion reigned Friday morning. The fate of the $1 billion trade-in program was up in the air over concerns that it may have already burned through its funds less than a week after it was officially launched. And it was unclear how much longer car buyers would be able to trade in clunkers after reports surfaced on Thursday night that the program would be suspended. On Friday, the Obama administration said it was working with Congress to try to get more money and that Clunkers deal certificates would be honored through the weekend. "The program will be in place" for anyone who had been planning to make a car purchase this weekend, White House spokesman Robert Gibbs told CNN. "This program appears to be a success for car buyers, car dealers, car companies and taxpayers." One of the program's main champions in Congress, Sen. Debbie Stabenow, D-Mich., told CNN that the Michigan, Ohio and Indiana congressional delegations are working on a $2 billion extension of Clunkers program. Stabenow had said the effort has provided an important boost to the economy and resulted in 200,000 car sales. "I am delighted to hear dealers say that all of their salespeople are busy and they are selling more cars in a day than they had been selling in a month," Stabenow said. Meanwhile, the Transportation Department was sorting out how much of the plan's funds have already been committed. Cash for Clunkers, which Congress passed in June, is set to end on Nov. 1 or whenever its $1 billion budget has been depleted. An early version of the Clunkers proposal before it passed Congress called for appropriating $4 billion. On Friday morning, the government's official CARS.gov Web site, set up to provide dealers and consumers with information about the plan, still showed $780 million remaining in the coffers. But many deals are still waiting to be processed, according to dealers. Brian Benstock, president of Paragon Honda in Woodside, N.Y., said his dealership had already written 60 Clunker deals since July 1, the earliest date from which deals would be accepted. One deal was signed at 11:55 p.m. last night, Benstock said, after reports had circulated indicating that the program might be suspended. "We're telling the customer, 'We're the only dealer open on Northern Boulevard. You're got four minutes,' " he said. The customer traded in a an old Mitsubushi Diamante sedan for a new Honda CR-V crossover SUV. Under the plan as enacted, vehicles purchased after July 1 will be eligible for refund vouchers worth $3,500 to $4,500 on traded-in gas guzzlers. The trade-in vehicle has to get combined city and highway fuel economy ratings of 18 miles per gallon or less. The program aims at helping the struggling auto industry by taking inefficient cars off the road and spurring new sales. "With this program, we are giving the auto industry a shot in the arm and struggling consumers can get rid of their gas-guzzlers and buy a more reliable, fuel-efficient vehicle," Transportation Secretary Ray LaHood said in a statement Monday. Domestic auto sales have been hit hard by the recession and credit crunch and helped propel the bankruptcies and government bailouts of General Motors and Chrysler. In June, the seasonally adjusted annual sales rate fell to 9.7 million, a pace well below recent years. Source: http://money.cnn.com/2009/07/30/autos/cash...ended/index.htm Link to comment Share on other sites More sharing options...
Chicopee John Posted July 31, 2009 Report Share Posted July 31, 2009 Clearly not a Waterloo but 'Cash for Clunkers' might be a description attached to Obama for some time. This may be simply a blip on the radar screen or could become a harbinger of things to come RE: stimulus and green programs. I bet 'Cash for Clunkers' - the term, not the program has legs. Link to comment Share on other sites More sharing options...
calfoxwc Posted July 31, 2009 Report Share Posted July 31, 2009 Cash for Clunkers - home appliances, farm tractors, TV's, computers... since we're printin money, eh? Link to comment Share on other sites More sharing options...
heckofajobbrownie Posted July 31, 2009 Report Share Posted July 31, 2009 Wait, this is horrible because ...the program was so popular the money was used up quicker than expected? That it led to the sale of 200,000 cars? That it removed some older, dirtier cars from the road in the process? You can dispute the costs of the program if you like, but I find it odd that you guys are upset that the program accomplished what it set out to do, and really quickly. Link to comment Share on other sites More sharing options...
Westside Steve Posted July 31, 2009 Report Share Posted July 31, 2009 Wait, this is horrible because ...the program was so popular the money was used up quicker than expected? That it led to the sale of 200,000 cars? That it removed some older, dirtier cars from the road in the process? You can dispute the costs of the program if you like, but I find it odd that you guys are upset that the program accomplished what it set out to do, and really quickly. Sit down, Heck. Get something cool to drink, This may shock you but I like that program a lot. I even think it coulda been bigger. WSS Link to comment Share on other sites More sharing options...
heckofajobbrownie Posted July 31, 2009 Report Share Posted July 31, 2009 I think how quickly the funds were used up shows the rebate could have lower, and cheaper to the government, and provided much the same benefit. Link to comment Share on other sites More sharing options...
Chicopee John Posted July 31, 2009 Report Share Posted July 31, 2009 Wait, this is horrible because ...the program was so popular the money was used up quicker than expected? That it led to the sale of 200,000 cars? That it removed some older, dirtier cars from the road in the process? You can dispute the costs of the program if you like, but I find it odd that you guys are upset that the program accomplished what it set out to do, and really quickly. I am comortable with our two vehicles so I honestly didn't spend a lot of time investigating the program. However, I have heard some folks complain that - in some cases - the increase in MPG from the old clunker to the new car - is not significant. I would have liked the program to involve only the US automakers although I do understand that foreign automobile companies have factories in the US and employ US workers. I'll leave discussion of whether the program was successful or not to the pundits. My only point is that it may flare up into a PR 'Disaster' as many folks will get closed out of the program. Have one of those Brewski's, Heck. I'm not attacking your heart throb I am questioning whether or not this program will be fodder for late-night TV Talk Shows and provide the perception that the program was not what it was cracked up to be. Link to comment Share on other sites More sharing options...
Westside Steve Posted July 31, 2009 Report Share Posted July 31, 2009 I think how quickly the funds were used up shows the rebate could have lower, and cheaper to the government, and provided much the same benefit. Actually they cou;ld have used the original Auto bailout for a program just like this. Even bigger. WSS Link to comment Share on other sites More sharing options...
heckofajobbrownie Posted July 31, 2009 Report Share Posted July 31, 2009 I am comortable with our two vehicles so I honestly didn't spend a lot of time investigating the program. However, I have heard some folks complain that - in some cases - the increase in MPG from the old clunker to the new car - is not significant. I would have liked the program to involve only the US automakers although I do understand that foreign automobile companies have factories in the US and employ US workers. I'll leave discussion of whether the program was successful or not to the pundits. My only point is that it may flare up into a PR 'Disaster' as many folks will get closed out of the program. Have one of those Brewski's, Heck. I'm not attacking your heart throb I am questioning whether or not this program will be fodder for late-night TV Talk Shows and provide the perception that the program was not what it was cracked up to be. Don't give me that heartthrob bullshit. That's Steve's domain. You guys were complaining about a program that obviously worked, and fast. It's not my fault. You can't be against the stimulus measures because they don't work and they're not stimulating the economy fast enough and then bitch about a program that does both. If there's an argument to be had it's that the program worked too quickly and wasn't spread out well enough over time. And you could never restrict the program to American cars only. That's the same as a huge tariff on imports. Other countries would respond in kind. And that's in addition to the reasons you mention - that Honda and Toyota and Hyundai employ a lot of Americans too. Link to comment Share on other sites More sharing options...
Chicopee John Posted July 31, 2009 Report Share Posted July 31, 2009 What guys are you referring to, Heck? Don't be so sensitive. I have not dissed the program. I am poking a little fun at it. Weren't you once a writer about stuff like this? I never said that this is stuff that 'shark jumping' is made of. Don't give me that heartthrob bullshit. That's Steve's domain. You guys were complaining about a program that obviously worked, and fast. It's not my fault. You can't be against the stimulus measures because they don't work and they're not stimulating the economy fast enough and then bitch about a program that does both. If there's an argument to be had it's that the program worked too quickly and wasn't spread out well enough over time. And you could never restrict the program to American cars only. That's the same as a huge tariff on imports. Other countries would respond in kind. And that's in addition to the reasons you mention - that Honda and Toyota and Hyundai employ a lot of Americans too. Link to comment Share on other sites More sharing options...
Mr. T Posted August 1, 2009 Report Share Posted August 1, 2009 Clearly not a Waterloo but 'Cash for Clunkers' might be a description attached to Obama for some time. This may be simply a blip on the radar screen or could become a harbinger of things to come RE: stimulus and green programs. I bet 'Cash for Clunkers' - the term, not the program has legs. Them Green Weenies are going to be mad we ran out of money, just to think about all of those gas guzzlers out there wrecking the precious enviroment. I wonder how much money the car dealerships spent on advertisements for this program that are no longer usable. What a waste. How much money did we give GM?? All of us own GM! the bill for this comes due on April 15th 2010 Link to comment Share on other sites More sharing options...
Westside Steve Posted August 1, 2009 Report Share Posted August 1, 2009 What guys are you referring to, Heck? I wondered about that too. Don't be so sensitive. He can't help it. It's hard wired. WSS Link to comment Share on other sites More sharing options...
Kosar_For_President Posted August 1, 2009 Report Share Posted August 1, 2009 Them Green Weenies are going to be mad we ran out of money, just to think about all of those gas guzzlers out there wrecking the precious enviroment. Dude I am seriously thinking of buying an El Camino. It's mint. It's an 80's model like this one. Is that on the list? LOL Link to comment Share on other sites More sharing options...
Guest mz. Posted August 1, 2009 Report Share Posted August 1, 2009 It's amazing how many folks actually embrace "socialism" when it benefis them directly... Link to comment Share on other sites More sharing options...
Mr. T Posted August 2, 2009 Report Share Posted August 2, 2009 Cash for Trash program stimulated 222,000 new car buyers in one week, when the national average is 192,307 new car buyers in one week. based on selling 10 million cars per year. in 2008 the average was an average of 253,846 new cars sold per week. http://wiki.answers.com/Q/How_many_cars_get_sold_in_a_year 3/4/2009 Car companies sold 13.2 million new vehicles in the U.S. in 2008, and that low rate forced General Motors and Chrysler to borrow a combined $17.4 billion from the government to stay afloat. http://www.usatoday.com/money/autos/2009-0...-february_N.htm Maybe if we print another 13.2 Trillion dollars we can up the car sales with rebates. Link to comment Share on other sites More sharing options...
Chicopee John Posted August 2, 2009 Report Share Posted August 2, 2009 It's amazing how many folks actually embrace "socialism" when it benefis them directly... Help me out, mz the pussy. Please elaborate / explain. Link to comment Share on other sites More sharing options...
Westside Steve Posted August 2, 2009 Report Share Posted August 2, 2009 It's amazing how many folks actually embrace "socialism" when it benefis them directly... You are 100 % correct. After all we have been moving in that direction for centuries. There are many services we "chip in" to buy for all. I just think when the system grows to where it seems just too lopsided between those who produce and those who consume the problems worsen. I don't propose we live under any pure capitalist anarchy but I think we need to keep the skyrocketing taxes and "benefits" as conservative as possible. It's human nature to not appreciate something that is or seems free. That sense of entitlement makes for more hostility in society. But hey for example if the "public option" is cheaper and at least as good as my Aetna policy why wouldn't I take it? OTOH thousands earn a living and invest in Aetna so they (not some boogeyman executive) will suffer. I think the less work or risk is needed to succeed the less we will do, unfortunately. /////////////////////////////////////////////////////////////////////////////////////////////////////// But back to the program at hand, wouldn't it have been better to take the first auto "bailout" and divide it into 5 to 10 K rebates for American cars? The industry still gets the money inventory gets moved the public gets better cars the industries that survive on parts or service make out.... What's the downside? WSS Link to comment Share on other sites More sharing options...
Guest mz. Posted August 2, 2009 Report Share Posted August 2, 2009 Help me out, mz the pussy. Please elaborate / explain. I doubt any Bentley or Lamborghini owners were rushing into their local Toyota (which I drive BTW) dealer to take advantage of this government program to buy that elusive new Corolla. So, essentially, this program was intended to help poorer folks who wouldn't normally be able to afford a new car to trade in their current POS and het that new car at a highly-discounted (government-subsidized) rate. Is that not a form of Socialism/Communism/whatever T wants to call it today? It's clearly leveling of the playing field and, most certainly, giving money to the poorer segements of society, no? But when it's cars, it seems like a good thing. Medicine/health care? BAD!!! I just don't get it... Link to comment Share on other sites More sharing options...
medicineman Posted August 2, 2009 Report Share Posted August 2, 2009 Alot of the cars they scrap were still good cars. Link to comment Share on other sites More sharing options...
Chicopee John Posted August 2, 2009 Report Share Posted August 2, 2009 I doubt any Bentley or Lamborghini owners were rushing into their local Toyota (which I drive BTW) dealer to take advantage of this government program to buy that elusive new Corolla. So, essentially, this program was intended to help poorer folks who wouldn't normally be able to afford a new car to trade in their current POS and het that new car at a highly-discounted (government-subsidized) rate. Is that not a form of Socialism/Communism/whatever T wants to call it today? It's clearly leveling of the playing field and, most certainly, giving money to the poorer segements of society, no? But when it's cars, it seems like a good thing. Medicine/health care? BAD!!! I just don't get it... OK, mz the pussy, now I understand your point. Not surprisingly, perhaps, I find the program ill-conceived. I am not in favor of it. Are we giving $4,500 to people who cannot afford new cars? If so, how can they make payments on the new loan? I disagree with folks who favor the program, regardless of their political persuasion. My bet is that people rushed to purchase cars only because of the 'free money'. Middle class people - people who were thinking of an upgrade any way. I don't believe any 'poor' people are going to leave their bus stops in favor of driving that new Yaris. We got to stop the spending!!!!!!!!!!!!!!!!!!!!! Link to comment Share on other sites More sharing options...
calfoxwc Posted August 2, 2009 Report Share Posted August 2, 2009 John raises an excellent point - are we helping people who had their old cars, because they couldn't afford a new one? But, with the cash for clunkers, they went for it anyways, given the op? I guess we'll see, if there is a reported flurry of defaults on government motors cars later on. It's a temporary boost, imho, designed to reward the almost middle class for voting for Obama. Way too much "here's a glass of water, since you're lost in the middle of the desert..YAY ! Vote for ME !" But the lost thirsty person gets thirsty again soon. I don't get it. Not a long term solution, by any stretch. Link to comment Share on other sites More sharing options...
BrownIndian Posted August 3, 2009 Author Report Share Posted August 3, 2009 SO I'm assuming that if you do trade in your gas guzzler, then you have to get a hybrid or something to that effect? Also I went to a local car dealerships website, and they had the cash for clunkers promotion on their website, and said they would give 4500 credit for any car traded in. Perhaps I misunderstood the program. I thought you could trade your car/truck in, get the value for that car, and on top of that get an additional 4500 bucks reimbursement from the gov't. Did I read it wrong, or is this car dealership trying to take people for a ride...? There is a list of cars/suvs/trucks that qualify for the CforC program. If your can is one of them u will get 4500 that you can use as downpayment to buy a new car. ur new car need not be a hybrid. Link to comment Share on other sites More sharing options...
BrownIndian Posted August 3, 2009 Author Report Share Posted August 3, 2009 CforC was nvr meant to be a long term plan. It is a temporary plan that tries to stimulate the new car sales and helps reduce the number of "clunker" on the road. It gifts money to consumers who in turn land up with a new car and a new loan to repay. Personally, I think it is one of the better programs that govt has done with the stimulus money. Link to comment Share on other sites More sharing options...
Westside Steve Posted August 4, 2009 Report Share Posted August 4, 2009 No government program is perfect or even really great. Anyway I don't miond this one. First it's not a whole lot compared to a new car. Two it moves US cars off the lot. Three if it saves a guy who's strapped for cash some gas money it should offset the purchase a little. I doubt there will be many defaults as lenders are still gonna be more careful with the app. Four it's an actual benefit for some in the middle or any class who wants a car rather than the usual screwing. Downside? If a "clunker" is worth a grand (for example) it's being wasted by shredding it. Looks like wasted profit there. It's going to pinch down the line when that buyer would have purchased a new car a year or two from now but at least it's an American car. For all the faults it's better (IMO) than thje original wasted auto bailout and shold have been done instead. You still get the dough to the companies and somebody gets something useful for it. WSS Link to comment Share on other sites More sharing options...
Mr. T Posted August 4, 2009 Report Share Posted August 4, 2009 Screw cash for clunkers get a pre 1996 car or truck and you wont need to get the epa inspection, especially around here that damn thing will make you drop 2 grand every year replacing good parts to get your o2 sensors to read that they are good. Link to comment Share on other sites More sharing options...
Westside Steve Posted August 4, 2009 Report Share Posted August 4, 2009 I've been under the impression this program is for US cars. Is that not the case? WSS Link to comment Share on other sites More sharing options...
heckofajobbrownie Posted August 4, 2009 Report Share Posted August 4, 2009 No, that's not the case. Link to comment Share on other sites More sharing options...
Westside Steve Posted August 4, 2009 Report Share Posted August 4, 2009 No, that's not the case. Well then I like the program less than I did. WSS Link to comment Share on other sites More sharing options...
heckofajobbrownie Posted August 4, 2009 Report Share Posted August 4, 2009 Try thinking through the idea of making this an American car only program for more than 7 seconds. Link to comment Share on other sites More sharing options...
Legacy Fan Posted August 4, 2009 Report Share Posted August 4, 2009 Try thinking through the idea of making this an American car only program for more than 7 seconds. If I could photoshop an Arnold Schwartz..ehh. whatever, "Tariffinator" graphic image, I would. And I'd insert it here. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.