Cash for clunkers

[Care4all]

I've given this issue a lot of thought and have come to the conclusion that while this program may be of limited sucess when it comes to the sale of new cars it has a flaw in several areas. Lets take for example the programs general aim is to provide the incentive for people to trade in their so called "clunker" for a new more environmentally friendly car. More often than not these "clunkers" are paid in full and the people trading them in have no financial obligation other than general upkeep and fuel. So when trading it in they then become indebted for a new car thus adding more people to an otherwise strained credit market. So how does this provide the incentive for people to save money in a time when the nation is economic trouble? One other thing to consider here is that by taking these perfectly good working cars off the road you limit the number of used cars available to those who cannot afford new cars and drive up the price of existing cars. Additional factors include, that 50% of the cars traded in are to foreign car companies thus leading to the creation of more jobs in the foriegn nations. So in conclusion this program is yet another attempt to socially engineer the way Americans live their lives when congress should be spending it's time on passiing legislation that actually provides incentives for Americans to have better lives. This one isn't it.

no real flaws with the sale of new cars....this does help the auto industry in the usa and the auto parts industry here as well...

but as you say, it does strap people with a car loan....but it is for $4500 less than it would have been....so not as much as it would have if they had to buy a new car without this program so it could leave more money for them to spend in other parts of the economy.

only excellent credit rating individuals are getting car loans is what the news said, so i doubt this benefits anyone but the middle to upper middle class the most....which is not a complaint....

on a personal note....
it hurts a little that our 15 year old 2nd car did not qualify because it got 22 mpg when bought it....

so it looks like those who spent the last decade with luxury cars or suv's or big ass trucks are the ones who benefit from this stimulus....those of us who were environmentally conscious 15 years ago, don't get squat....which is sad, because i was willing to buy a car that still got 10mpg better than the 22mpg that the car got....our other newer car gets 34 mpg and its technology is nearing 5 years old...i'm sure even better can be had now!

 

[alan1]

well, matt and i own a clunker that is 15 years old, that DOES NOT QUALIFY for the 4500 or the $3500 rebate which really stinks, for goodness sakes!

our 15 year old clunker got 22 miles per gallon when bought, and only people who owned the expensive gas guzzlers like 6 or 8 cylinder SUV's, OR big gas guzzling american cars can get the money....18 mpg or less on the clunker!

this is a tax gift to the people who had money in the first place to buy the chevy tahoe...or ford exployer or lincoln continental!

I'm sure there are quite a few pickup trucks getting traded in for newer models (of trucks). Lots of people that work for themselves in construction and landscaping drive trucks.

 

[Navy1960]

well Care I'm very happy with my 2005 Buick and my old gas guzzling, non environmentally friendly truck. Call it what you will, bu I like to call them both paid for. As for the program itself there is no doubt it is there to promote the auto industry but for some strange reason, this just sends the wrong signal at the wrong time. Yes it does do a lot for the environemtal folks which I'm sure makes them all jump for joy that the evil SUV's are being taken off the road, but then again I have a little sympathy for those people who cannot afford a new car and those that cannot afford one but buy one anyway they don't need too. I also find it troubling that a person would use a program like this to purchase a Lexus or BMW, to me it seems that if a person was thinking of such an automobile, getting 4500.00 dollars for a trade-in woould not keep them from doing so.

 

[alan1]

well Care I'm very happy with my 2005 Buick and my old gas guzzling, non environmentally friendly truck. Call it what you will, bu I like to call them both paid for. As for the program itself there is no doubt it is there to promote the auto industry but for some strange reason, this just sends the wrong signal at the wrong time. Yes it does do a lot for the environemtal folks which I'm sure makes them all jump for joy that the evil SUV's are being taken off the road, but then again I have a little sympathy for those people who cannot afford a new car and those that cannot afford one but buy one anyway they don't need too. I also find it troubling that a person would use a program like this to purchase a Lexus or BMW, to me it seems that if a person was thinking of such an automobile, getting 4500.00 dollars for a trade-in woould not keep them from doing so.

I hear you.
I've got an '89 Silverado - paid for.
A '99 Explorer - paid for
Oldest daughter has an '02 Intrigue - paid for
Youngest daughter has an '02 Sebring - paid for

I've considered trading in the Silverado under this program for a new truck but I haven't made my mind up yet.

 

[Care4all]

well Care I'm very happy with my 2005 Buick and my old gas guzzling, non environmentally friendly truck. Call it what you will, bu I like to call them both paid for. As for the program itself there is no doubt it is there to promote the auto industry but for some strange reason, this just sends the wrong signal at the wrong time. Yes it does do a lot for the environemtal folks which I'm sure makes them all jump for joy that the evil SUV's are being taken off the road, but then again I have a little sympathy for those people who cannot afford a new car and those that cannot afford one but buy one anyway they don't need too. I also find it troubling that a person would use a program like this to purchase a Lexus or BMW, to me it seems that if a person was thinking of such an automobile, getting 4500.00 dollars for a trade-in woould not keep them from doing so.

i dunno what BMW's cost but there is a self imposed cap by the auto dealers of $40 k, i believe i read?

a car, truck or suv from 2001 or 25 yrs before, that gets less than 18mpg, the gvt will write a check for $4500, the car had to be registered and insured the past year and has to run, and the new car under the $40k i believe, with 10mpg improvement from your old vehicle...

with only 4mpg improvement they give $3500...which i believe is a WASTE of money for only 4mpg improvement...

the dealers give you bluebook trade value PLUS the $4500 cash for your trade in...so if your car is worth 4500 dollars you would have $9000 towards your new car.

 

[Meister]

well Care I'm very happy with my 2005 Buick and my old gas guzzling, non environmentally friendly truck. Call it what you will, bu I like to call them both paid for. As for the program itself there is no doubt it is there to promote the auto industry but for some strange reason, this just sends the wrong signal at the wrong time. Yes it does do a lot for the environemtal folks which I'm sure makes them all jump for joy that the evil SUV's are being taken off the road, but then again I have a little sympathy for those people who cannot afford a new car and those that cannot afford one but buy one anyway they don't need too. I also find it troubling that a person would use a program like this to purchase a Lexus or BMW, to me it seems that if a person was thinking of such an automobile, getting 4500.00 dollars for a trade-in woould not keep them from doing so.

i dunno what BMW's cost but there is a self imposed cap by the auto dealers of $40 k, i believe i read?

a car, truck or suv from 2001 or 25 yrs before, that gets less than 18mpg, the gvt will write a check for $4500, the car had to be registered and insured the past year and has to run, and the new car under the $40k i believe, with 10mpg improvement from your old vehicle...

with only 4mpg improvement they give $3500...which i believe is a WASTE of money for only 4mpg improvement...

the dealers give you bluebook trade value PLUS the $4500 cash for your trade in...so if your car is worth 4500 dollars you would have $9000 towards your new car.

This is the part I don't get. If the car is worth 4500, and you get 4500 that's 9000. But the dealer can't resell the vehicle. I doubt he would get 4500 to recoup his loss on the vehicle. So does he take the loss?

 

[Care4all]

and yes, both cars, the newer one and the clunker are paid for here as well...and if we had qualified for the $4500 we would have traded the clunker in and use cash for the rest, so it would have been paid for as well....but since we didn't qualify, i am gonna live with my 15 year old Betsy for a while longer and since i am not working, that's really not a problem, the grocer is 2 miles, i can deal!

we are soooooo, not in to car status or car envy in our older age....if it runs, its good!

 

[Care4all]

well Care I'm very happy with my 2005 Buick and my old gas guzzling, non environmentally friendly truck. Call it what you will, bu I like to call them both paid for. As for the program itself there is no doubt it is there to promote the auto industry but for some strange reason, this just sends the wrong signal at the wrong time. Yes it does do a lot for the environemtal folks which I'm sure makes them all jump for joy that the evil SUV's are being taken off the road, but then again I have a little sympathy for those people who cannot afford a new car and those that cannot afford one but buy one anyway they don't need too. I also find it troubling that a person would use a program like this to purchase a Lexus or BMW, to me it seems that if a person was thinking of such an automobile, getting 4500.00 dollars for a trade-in woould not keep them from doing so.

i dunno what BMW's cost but there is a self imposed cap by the auto dealers of $40 k, i believe i read?

a car, truck or suv from 2001 or 25 yrs before, that gets less than 18mpg, the gvt will write a check for $4500, the car had to be registered and insured the past year and has to run, and the new car under the $40k i believe, with 10mpg improvement from your old vehicle...

with only 4mpg improvement they give $3500...which i believe is a WASTE of money for only 4mpg improvement...

the dealers give you bluebook trade value PLUS the $4500 cash for your trade in...so if your car is worth 4500 dollars you would have $9000 towards your new car.

This is the part I don't get. If the car is worth 4500, and you get 4500 that's 9000. But the dealer can't resell the vehicle. I doubt he would get 4500 to recoup his loss on the vehicle. So does he take the loss?

i don't get that either meister? but that's how it works....

unless there is a cap on the trade in, that dealers may choose?

also, they can get some money for junking the car....radio/cd/tires/sunroofs/brakes, melted down steel etc......

 

[TT16]

If I've heard correctly, it takes the sale of about 250,000 vehicles to use up 1 billion dollars for cash for clunkers. So, if the senate passes the house version this week, any guesses on how long it will take to use the next 2 billion. Could it be gone by the end of August. Auto and parts company assembly line should be cranking up to meet demand. Many people back to work making paychecks to spend for other goods and services. I've heard that it's putting American steel workers back to work also.

 

[pete]

This is the part I don't get. If the car is worth 4500, and you get 4500 that's 9000. But the dealer can't resell the vehicle. I doubt he would get 4500 to recoup his loss on the vehicle. So does he take the loss?

The yare paying for the trade in AND giving up to 4500?

 

[probus]

it's insane that we're not only bailing up the car companies, but also paying them profit to take our shit cars that are not worth $4500 or a bucket of spit-- we all pay in the end-- don't make me go all caps on u-- Regards, probus

 

[pete]

it's insane that we're not only proping up the car compaies, but also paying them profit to take our shit cars that are not worth 4500 or a bucket of spit-- we all pay in the end-- don't make me go all caps on u-- Regards, probus

The ones we propped up arent fairing well .... its foreign and ford. LOL

 

[Navy1960]

[ame=http://www.youtube.com/watch?v=C_S9XJlmlzI]YouTube - **Breaking** Cash for Clunkers Con = Car Dealers Stealing Millions in Bailouts?[/ame]

Forgive me if someone has posted this already , but I thought this was interesting. Care is right the older you get the more getting a new car has meaning at least to me. I'm perfectly happy with the car's I have. However I can't say the same for my environmentally friendly green democrat daughter *laughs* yes you heard it folks this old Republican has a daughter who is a democrat , but no dad could be more proud of her , but her car choice a toyota prius leaves little to be desired. I told her the thing looks like and upsidedown bathtub on wheels . I suppose I will have to settle that she is doing the green thing for the both of us while I keep doing my part for global warming.

 

[pete]

This is the part I don't get. If the car is worth 4500, and you get 4500 that's 9000. But the dealer can't resell the vehicle. I doubt he would get 4500 to recoup his loss on the vehicle. So does he take the loss?

The program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate.

CARS.gov - Car Allowance Rebate System - Home - Formerly Referred to as “Cash for Clunkers”

The dealer decides what your scrap is worth.

 

[probus]

it's insane that we're not only bailing out the car companies, but also paying them profit to take our shit cars that are not worth $4500 or a bucket of spit-- we all pay in the end-- don't make me go all caps on u-- Regards, probus

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Last edited by probus; Today at 11:26 PM.

 

[pete]

YouTube - **Breaking** Cash for Clunkers Con = Car Dealers Stealing Millions in Bailouts?

Forgive me if someone has posted this already , but I thought this was interesting. Care is right the older you get the more getting a new car has meaning at least to me. I'm perfectly happy with the car's I have. However I can't say the same for my environmentally friendly green democrat daughter *laughs* yes you heard it folks this old Republican has a daughter who is a democrat , but no dad could be more proud of her , but her car choice a toyota prius leaves little to be desired. I told her the thing looks like and upsidedown bathtub on wheels . I suppose I will have to settle that she is doing the green thing for the both of us while I keep doing my part for global warming.

He needs to buy more friends

 

[Care4all]

This is the part I don't get. If the car is worth 4500, and you get 4500 that's 9000. But the dealer can't resell the vehicle. I doubt he would get 4500 to recoup his loss on the vehicle. So does he take the loss?

The yare paying for the trade in AND giving up to 4500?

2 of our American dealerships were advertising like mad this weekend and they covered it on the news, 4500 plus...up to another 4500 for your car depending on condition...don't know or actually i do not remember seeing the foreign make dealers offering the same...but Ford was and i think chrysler was.....

care

 

[Ravi]

the dealers give you bluebook trade value PLUS the $4500 cash for your trade in...so if your car is worth 4500 dollars you would have $9000 towards your new car.

I don't think that is correct, Care. You get $4500 for a clunker worth less than $4500 and that car gets junked. If your care is worth more than $4500 it is just considered a trade in. A car worth less than $4500 these days isn't considered a luxury car.

At least that is how I understand the program. Please link where you got that information.

 

[pete]

Important Things to Know

* Your vehicle must be less than 25 years old on the trade-in date
* Only purchase or lease of new vehicles qualify
* Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)
* Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in
* You don't need a voucher, dealers will apply a credit at purchase
* Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.
* The program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate.

CARS.gov - Car Allowance Rebate System - Home - Formerly Referred to as “Cash for Clunkers”

 

[Ravi]

This is the part I don't get. If the car is worth 4500, and you get 4500 that's 9000. But the dealer can't resell the vehicle. I doubt he would get 4500 to recoup his loss on the vehicle. So does he take the loss?

The yare paying for the trade in AND giving up to 4500?

2 of our American dealerships were advertising like mad this weekend and they covered it on the news, 4500 plus...up to another 4500 for your car depending on condition...don't know or actually i do not remember seeing the foreign make dealers offering the same...but Ford was and i think chrysler was.....

care

Oh, I get it. This is just creative advertising on the part of your local dealers. If your trade in is worth more than $5,000 you wouldn't settle for $4,500 for junking it. Any car the dealer buys for $9,000 isn't going into the government rebate program...they'll just turn around and sell it for $11,000.