Cash for Clunkers

[TinmanMS6]

Yes, but will continuing the program indefinitely maintain those sales? I think not. People are rushing out to take advantage of what they see as a limited time offer. They're pulling sales ahead and cannibalizing sales in the coming months.

Oh, yeah, and the American taxpayer is paying $4500 to scrap a 1987 Ford Econoline.

 

[evilmonkeyMSP]

I dont think it should be permanent. It will lose its luster pretty quickly if people dont realize they need to act now to take advantage of it which will make its intended effects prettymuch nil.

 

[RacerXGirl]

MiaTurbo posted something about this on his FB, where he did the math on fuel costs, maintenance, etc. on the "clunker" car versus fuel costs, maintenance, car note, etc. on the new car...it was ridiculous how long it would take for you to realize the cost benefit savings of having traded in the clunker for the new car.

Yeesh...I'll stick with our two paid off cars that get decently good fuel mileage...

 

[GoFast]

Oh, yeah, and the American taxpayer is paying $4500 to scrap a 1987 Ford Econoline.

That is exactly right

 

[1sty]

Yes, but will continuing the program indefinitely maintain those sales? I think not. People are rushing out to take advantage of what they see as a limited time offer. They're pulling sales ahead and cannibalizing sales in the coming months.

Oh, yeah, and the American taxpayer is paying $4500 to scrap a 1987 Ford Econoline.

Didn't say it would.
To me this is another fantastically bad idea of the Obama administration to avoid having to address any real problem with the economy and just kick the can down the road further.
The REAL issue is that Americans have been living in unmanageable debt and we KEPT BUYING MORE. Suddenly we all got scared enough to stop being idiots which made the economy come back to reality instead of being over inflated on bad debts.
So the governments amazing answer is to help us get into MORE DEBT so the economy keeps trucking.
They want banks to lend more, to people that already cant pay their bills and no.

I just cant wait for the College/higher education bubble to break when my generation has kids and encourages them to only go to college once they know what they want instead of the 80% of my friends that still live at home with a completely worthless education in sociology, liberal arts, or basic business. And if you think I am nuts here, consider Harvard University just laid off 200 people.

 

[tunersteve]

The problem I have with this is that although it stimulates the auto industry, it still hurts a certain portion of the American public. Right now, we're still in a recession, and unemployment is at a high point, and we're worried about selling cars...What happens to the family who can't afford a new car, but needs parts to keep their 'clunker' running safely? Can't save a motor from these and let the scrap yards recoup some money and benefit as well, instead we destroy the motors and the cars are worth only $2-300 at the end?

I think the idea is novel, but the execution was flawed. I sincerely hope that this is a short lived program, so that they can focus on more important tasks, and some car buyers can get a steal of a deal while the money is there.

 

[1sty]

IDEA!
How about instead of cash for clunkers, they have cash for POS!
Basically you can trade in any "American" that was built outside of this country for an "import" that is actually build here.

That would have been great to help me get out from the worthless Pontiac my wife had.

 

[Cataphract_40]

In a surprisingly quick move, the House has now authorized an additional $2 billion for the program:

http://www.bloomberg.com/apps/news?pid=20603037&sid=aZQsGa9XbZGY

 

[TinmanMS6]

OMFG

http://www.bloomberg.com/apps/news?pid=20601087&sid=aWKYBKED5EKI

Apparently the entire $1 billion allocated for this program was burned through in only six days.

Hyundai's been taking Clunkers for this program for weeks before the gov't finalized the program, and others followed suit. It's really been a few weeks, and right now they're shitting their pants because they have no idea how many deals are in the pipeline, and everything's so screwed up they have no way to find out.

 

[aMaff]

Hyundai's been taking Clunkers for this program for weeks before the gov't finalized the program, and others followed suit. It's really been a few weeks, and right now they're shitting their pants because they have no idea how many deals are in the pipeline, and everything's so screwed up they have no way to find out.

that's a well thought out and executed plan if I've ever seen one!

Don't even get me started on government subsidized cell phones...(doughpoke

 

[Hughes412]

You better hope it don't last. They just offered 2 BILLION more for the program. WHO PAYS FOR THAT? This program is a joke. It's only for early 90 models. All of those cars have better emmissions and better MPG then the 70-80s models. Why not take the older cars first. This is just another screwed up waist of tax payers money. Thank you Mr O!(jerkit)

 

[GoFast]

You better hope it don't last. They just offered 2 BILLION more for the program. WHO PAYS FOR THAT? This program is a joke. It's only for early 90 models. All of those cars have better emmissions and better MPG then the 70-80s models. Why not take the older cars first. This is just another screwed up waist of tax payers money. Thank you Mr O!(jerkit)

Just? They offered that last week....

 

[stdntDrvr]

they're hurting the auto industry just like gm/chrysler/ford hurt themselves a few years ago with the 'employee pricing' program. sure, business was freaking amazing during that program...but afterwards, it sucked...i know first hand. what they did was to get people out of their normal trade cycles. There were customers who bought cars who would have normally waited a year or two just to get the deal...so, what happens? Those customers you could rely on like clockwork had already bought...so you had little to no business in the years following. It was one of those things where the dealers were happy at first...but once we realized what this did to the future of the business, we were stuck. Business was horrible...and i do mean horrible...in the months following. you had those that you would have expected to see in the coming months/years that would now be 'out of the game' for a longer period of time...and those who said 'i'm not buying...they're going to bring that program back.'

same situation, different day. way to go, obama. the problem with the manufacturers would have worked itself out...but now you threw another wrench into it.

 

[TinmanMS6]

Edmunds: DOTs Cash for Clunkers Top Ten List Gets It Wrong

The autoblogosphere is abuzz with debate over the Department of Transportation’s (DOT) list of the top ten Cash for Clunking vehicles. To say the least. Edmunds [via CNN] reports that the DOT counted vehicles EPA-style, tallying differing powertrain or drive wheel combinations separately. For example, the DOT rates a Ford Escape with two wheel-drive as a distinct model from a Ford Escape with all wheel-drive. If you’re Edmunds (or any one else with an ounce of common sense), you combine all the model variants’ sales totals into one stat. And if you do that, you get a horse of a different color. The implication making the rounds: the DOT manipulated the data to hide the fact that a brace of SUVs and pickup trucks made the top ten; the Cash for Clunkers program is supposed to be about saving the environment. Yes, well, high margin pickup trucks offer the best chance of saving the domestics. So, let’s compare the DOT list (as of August 7) with Edumunds’ take . . .


DOT-----------------------------------------------------------Edmunds

1. Toyota Corolla----------------------------------------------Ford Escape

2. Ford Focus-------------------------------------------------Ford Focus

3. Honda Civic------------------------------------------------Jeep Patriot

4. Toyota Prius-----------------------------------------------Dodge Caliber

5. Toyota Camry----------------------------------------------Ford F-150

6. Hyundai Elantra--------------------------------------------Honda Civic

7. Ford Escape (FWD)----------------------------------------Chevrolet Silverado

8. Dodge Caliber----------------------------------------------Chevrolet Cobalt

9. Honda Fit--------------------------------------------------Toyota Corolla

10. Chevrolet Cobalt------------------------------------------Ford Fusion

 

[skylar2ups]

I'm confused on what I'm looking at... could someone dumb it down?

 

[TinmanMS6]

When the DOT reported their top 10 cars that people were trading in their clunkers for, they counted 2WD/AWD/4WD separately, as the EPA does, rather than together, as somebody with a brain might. Therefore, a bunch of SUVs and trucks with multiple drivetrain layouts jumped up when those were added together.

For example, the FWD Escape was #7 on the DOT's list by itself. Once the 4WD Escapes are added to that number, it jumps to #1.

 

[soccom2005]

hmmm... thats not right.... youre saying ford escapes, all variant, are the number 1 vehicle that people are getting for their trade in...

 

[neox.286]

it gets good gas mileage
http://www.fueleconomy.gov/Feg/noframes/25622.shtml

 

[dmention7]

Just to set the record straight here... Cash for Clunkers is not an environmental program; it's purely a financial stimulus with a few hand-waving arguments to make it appear like an environmentally-friendly bill that's killing two birds with one stone.

In all but a relatively small number of cases of said "clunkers" being in a state of severe disrepair, destroying a car and building a replacement requires more energy, raw materials, and emissions than keeping a less efficient car on the road. If it had anything to do with environmental policies the trade-in requirements would be based on the "clunker"'s current state of operation, and the entire car would be made available for recycling.

 

[bazooka joe]

it gets good gas mileage
http://www.fueleconomy.gov/Feg/noframes/25622.shtml

thats the hybrid