Cash For Clunkers

Okay, so here we are roughly four days into the "Cash For Clunkers" program, which offers up to $4,500 for a trade-in on your lower-mileage, later model vehicle, and yet the U.S. Transportation Department wants to suspend the program because it has become "too successful". So far, $96,000,000 of the allocated $1,000,000,000 has been utilized, which represents 9.6% of the total available funds. This number is representative of roughly 22,000 brand new vehicles being sold through dealerships across this nation in only FOUR days. However, there are approximately 220,000 more vehicles still in procedure at this moment, due to the back-logging of the dealership rebate registrations/applications, and when the total amount of such is added up, we soon hit a spenditure of $960,000,000, which is equal to 96% of the allocated funds. Therefore, we realize that a program which was originally intended to last One entire year, and then immediately before implementation it was re-estimated to last until November of 2009, has now run its course in less than ONE WEEK.

Well, in all of the ensuing chaos and hooplah surrounding this rather wild occasion, has anyone ever stopped to ask, or even consider, just how many of those benefiting from this return in our tax expenditure are non-citizens, and quite possibly non-tax paying illegal aliens?

Imagine two dealerships one dealing in new cars and the other dealing in used cars. The guy with the used cars realizes he has a lot of those qualifying cars in his lot. He then talks to his buddy that owns a new car lot and discusses how to game the system.

I expect some abuse is happening in this whole thing. Running out of money that quick is a red flag.

Fox news showed where the sales are going. The Japanese and the Korean Automakers are making a killing, followed by Ford Motors. So, Cash for Clunkers is actually cash infusion for Foreign Competition!

Destroying these turned in vehicles permanently, is beyond ridiculous. Many of those vehicles could be salvaged and sold to those who disparately need a cheaper reliable used car. This is also going to drive up the prices for a used car later. It isn't going to save petroleum or the planet to ruin these cars.
If this keeps up, there will be a huge gap in the year makes of used cars. There will be those that are older than 15+ years old, and hard to keep repaired...and newer cars that are expensive to buy. ( A push to mass transit for the poorer citizen who can't afford a used car? )

I have noticed that there is a dumping of used Pontiac's here locally. Same thing happened when Oldsmobile shuttered. No one wants an orphaned car.

I remember when Studebaker shut down. ( 1966 ) For a while, there were Studebaker's and Packard's on all the third rate lots...then they were gone for good! Poof! Disappeared over night almost...NOW, an old Studebaker is a highly sought after collectors car! Some Packard's too.

I have a chance to pick up a fairly sweet 2000 Pontiac Bonneville that has the V6 engine. I think I will pick it up, as a third car...as a back up vehicle.

I drove it across country twice, and it was a great reliable ride. Fuel economy wasn't bad at all. It averaged in the mid 20's Mi. per...

According to the C4C'$...this would qualify as a Clunker to be Junked...which it isn't! Since it blue books at about $3,500 or less...It is worth buying.
If maintained properly, this vehicle could clock 250,000+ miles easily.
Right now it has 80,000 on it. Certainly not a Junker.

The crazy thing is, the dealers are supposed to have the trade ins crushed, when they could be selling them. Follow me here. The Rich and the Upper Middle Class buy new cars. The Rich buys one each year or so, the U.M.C. buys one every two to five years. The trades are sold as used cars, and the poor buys those cars, knowing they have been well maintained and kept in good condition. By crushing all these cars, and people, only the Richer people are talking this deal and getting a new Hybrid car or truck. The next generation of good used cars is about to go down the tubes is this goes on like it is. Am I the only one who can see this? My government is retarded sometimes.

reply to post by autowrench


Not crushed... the motors are to be seized up and then the vehicles are given salvage titles.

I was wrong.

They changed it.

These certifications, which are legally binding on the disposal facility, include a certification that the CARS trade-in vehicle will be crushed or shredded onsite within 180 days of receipt of the vehicle, that all toxic or hazardous components will be removed and properly disposed of prior to crushing or shredding, and that the vehicle will not be transferred to any other disposal facility before it is crushed or shredded.

cars

I recall a few stories of good cars being crushed and shredded. Such as the EV1? and a shipment of brand new Hondas? on some boat that almost sunk.

Now that they're spending this money for these new cars to be sold, I think they need a better program for those who can't afford new ones and have the used ones certified, sold more reasonably and leased, or rent to own etc. Get the real clunkers off the road.

Than they also need to change something about these diesel trucks and bring in the hybrids and hydrogen hybrids, I'd also like to see night time deliveries rather than clogging up the morning roads with these trucks. That will piss off some truckers. Whatayagonna do?

I just looked up my car I bought from a dealer 2 years ago and it's value is down by 2/3rds. Yet, the dealers are still asking as much as 7,000 for some with around the same mileage and options.

My auto insurance has gone up over 20 dollars in the past 7 months without any warning or reason other than their own losses.

I checked on line and found a couple Ins. Co. that would split that in half for the same coverage. My point is I probably won't get it's value if it's totalled and the loss or difference in insurance payments could have been applied towards repairs or even a better car.

So many now have lowered their coverages and likely also went with worse insurance companies. Some are said to be driving without insurance also?

Lets not forget the insurance companies are in on this clunker deal also.

[edit on 3-8-2009 by aleon1018]

reply to post by TheAgentNineteen

Cash For Clunkers

First of all, the term 'Cash for Clunkers' is a misnomer. The plan doesn't allow for many real clunkers as they are either too old or not in good enough condition to make the trade.

Secondly, if you don't have a pretty credit file, the plan will send you down the road looking for a clunker. This deal does not benefit anyone who has been laid off or who has fought long and hard to rebuild a credit file in an age where such rebuilding is almost impossible without the help of shady credit card accounts that drain your wallet just in interest fees.

This is not meant for the majority of those who voted for Mr. Obama. This is aimed at those who did not... because most of them have the money and credit ratings to help float the domestic auto industry when they would have, should have otherwise folded.

...

reply to post by redoubt


Maybe they thought Oprah would aprove?

No, this was supposed to jump start the auto dealers. There very well may be those who got deals that couldn't get the credit for the new ones.

When I first heard it, I didn't like the idea.