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Cash For Clunkers Bill

BeldarBeldar Posts: 458Registered User Junior Member
Ready to trade in your present car.........?

Obama, lawmakers agree on cash-for-clunkers bill | Politics | Reuters
Post edited by Beldar on
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Replies to: Cash For Clunkers Bill

  • IllinoisMom2006IllinoisMom2006 Posts: 879Registered User Member
    Here's a more thorough article:
    Autos: Cash for Clunkers Advances - BusinessWeek

    We probably will take them up on it and get rid of our 96 Buick.

    And here is the gov't website to find out your current car's mpg rating:

    http://www.fueleconomy.gov/feg/findacar.htm
  • simbasimba Posts: 6,092Registered User Senior Member
    Again tell me about any stupid distribution of wealth social engineering spending program Obama does not like.

    Sun will rise in west if he vetoes any spending program in his administration.

    Personally, I don't see a need for it.
  • ucsd_ucla_daducsd_ucla_dad Posts: 8,573Registered User Senior Member
    I'll have to read the details but I guess this'll boost the prices on old clunkers since people will want to buy them and then trade them as a 'clunker' to get free money from the government - i.e. if I want a new $25K Toyota I should first go out and buy a 'clunker' for $500 so I can trade it in and get $4500 of government money making me $4K ahead on the backs of taxpayers.

    Also, if people go out and buy cars made in Germany, Japan, Sweden, China, etc., exactly how does that stimulate our economy?

    Will the dealers keep a 'stock' of clunkers available for a quick buy-and-trade for their customers looking to buy a new car who don't happen to already have a clunker? How will the government know the clunker was 'disposed of' after traded in?

    Will the dealers now jack up the price of the new car because they figure the buyer is getting free money from the government for their clunker anyway?

    There seems to be an assumption that as long as the government provides my tax dollars as an incentive then people will happily trade in their old clunker that they're probably only keeping because they can't afford or shouldn't buy something new (that they might default on and get repo'd, etc.).

    It sounds like a ridiculous and unnecessary proposal that like many of these proposals will have some counter-productive results.
  • bluebayoubluebayou Posts: 21,715Registered User Senior Member
    And, of course, don't forget that such proposals penalize those that did the right thing years ago and purchased high gas mileage cars.
  • VderonVderon Posts: 881Registered User Junior Member
    Right. Just traded in my clunker yesterday. It never fails. I don't benefit from any of these government programs because I "make too much money" and here is another one I don't benefit from.

    ucla dad could not be more correct. There will be a run on buying clunkers. AND- no one will donate their car to charity anymore, so all of those charities will lose out.
  • NJresNJres Posts: 5,285Registered User Senior Member
    I am getting a headache... thinking about buying a $500 wreck to get a $3500 voucher.. insanity!

    In the past few days I have been pricing a new 2009 Honda CRV. Got a great price quote through AAA buying service. There is a $500 dealer incentive on these vehicles. I wonder if the great price will suddenly disappear. But should I grab it before the price goes back up to MSRP? Or should I wait and buy an 84 Chevy to get a voucher? Decisions, decisions.


    ugh... I am feeling ill just thinking about this. I read that the current version requires registration of old vehicle for 120 days (So you can go out and buy a clunker but you cant trade it in for 3 months). Bill is not final yet.

    http://www.govtrack.us/congress/bill.xpd?bill=h111-1550


    And my latest and last thought... unintended consequences... will new car sales go from dismal to zero while the public waits for this giveaway program to become finalized? I'm going to feel like a fool if I buy a new car and the govt puts out a $3000 subsidy the next day.
  • VderonVderon Posts: 881Registered User Junior Member
    No kidding. I feel like a fool right now, and I can't even enjoy my new (used) car.
  • BigGBigG Posts: 3,885Registered User Senior Member
    ucla dad,

    Don't worry about your tax dollars. The Fed is creating money to finance the deficit.The Federal Government is not raiseing taxes and they are not selling T-Bills other than to the Federal Reserve. The Chinese are onto our scam, they just don't know what to do about it, yet.

    Worry about the coming hyperinflation. Of course when bread is $15.00/loaf the multi-trillion dollar national debt can be easily paid off with devalued dollars. Come to think of it, that is the only way the national debt can be paid. Public finance is way past the point where thrift can have any impact on government expenditures.

    It is not just President O. President W. started this mess. Now all the GOP "born again" fiscal conservatives are throwing stones.
  • BCEagle91BCEagle91 Posts: 22,762Registered User Senior Member
    Hopefully this will encourage people to trade in their cars that have oil or other leaks, that aren't maintained well or that aren't up to current safety standards. I have a friend that drives an 88 buick - it has a leak in the gas tank, has a roof leak and he uses duct tape and a torch to keep the thing going. The guy is a millionaire but he is dirt cheap when it comes to cars. He can't get more than a few hundred for it so maybe this will encourage him to dump it and get something reliable (he's had a few choice stories like the car croaking in the middle of a very long 2-land bridge).
  • razorsharprazorsharp Posts: 6,161Registered User Senior Member
    Instead of wasting a large part of 1.4 trillion dollars on that stimulus package that was really a big government package, cash for clunkers is the sort of thing Obama should have done in the first place. It targets one of the depressed industries - auto- and helps stimulate demand. I believe this approach was taken in England and the English viewed it as somewhat successful.
  • simbasimba Posts: 6,092Registered User Senior Member
    "I believe this approach was taken in England and the English viewed it as somewhat successful. "

    I think it was Germany and was somewhat successful. However, Germans did not subscribe to other garbage of US president and printed money.
  • razorsharprazorsharp Posts: 6,161Registered User Senior Member
    I think you are right Simba. It must have been Germany I was thinking of. I believe they were focused on fuel efficiency.
    In Germany, sales of new, fuel-efficient cars went up by 20% once the program was enacted, and individuals like Moran are hoping for the same in America.

    'Cash for Clunkers' Offers Up to $4,500 to Car Buyers - FOXBusiness.com
  • BCEagle91BCEagle91 Posts: 22,762Registered User Senior Member
    I later read the part about 18 MPG. My friend's car gets about 36 MPG so it wouldn't qualify.
  • NJresNJres Posts: 5,285Registered User Senior Member
    If $3500 - $4000 is a good idea, wouldn't $10,000 be a great idea? Why doesn't the government just buy everybody a new car? A chicken in every pot, 2 cars in every garage. While they are at it, why don't they create a similar program for houses? Tear down old inefficient homes and give the owners $200,000 vouchers to buy new houses.
  • BCEagle91BCEagle91 Posts: 22,762Registered User Senior Member
    "Tear down old inefficient homes and give the owners $200,000 vouchers to buy new houses."

    They actually do something similar in Singapore and my wife is a beneficiary of that largesse. They build a new building and you pick a unit to replace the one that you're currently living in. Then they give you a wad of cash for your inconvenience. Sounds like a great way to upgrade the housing stock, create construction jobs and make their citizens happier.
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