Isn't this the way it's supposed to work?

[dgriffin]

Hey, isn't this the way capitalism is supposed to work?

Group of Dealers Launch Private Auto Stimulus Program


As senators prepare to vote on whether to add $2 billion to the ballyhooed "Cash for Clunkers" program, some of the nation's largest dealerships have created a private stimulus package of their own, offering from $500 to $4,500 in incentives on top of the federal program.

FOXNews.com

Thursday, August 06, 2009


As senators get ready to vote on whether to add $2 billion to the ballyhooed "Cash for Clunkers" program, some of the nation's largest dealerships have created a private stimulus package of their own, offering prospective car-buyers from $500 to $4,500 in incentives on top of the federal program.

The dealers' package begs the question: Do taxpayers really need to kick in an additional $2 billion for the federal program now that private dealers are offering a similar -- or even better -- deal?

"If the auto industry can afford their own $4,500 per car auto stimulus, why are taxpayers being forced to foot the $3 billion bill on clunkers?" Sen. Jim DeMint, R-S.C., told FOXNews.com.


Good question!!


Article AT:
www.foxnews.com/politics/2009/08/06/group-dealers-launch-private-auto-stimulus-program/

[stoney]

The difference I see, Dave, is that the CARS program encourages people to get gas-guzzlers off the road while replacing them with more fuel efficient models. Car dealers seem to give incentives on whatever cars they want to get rid of regardless of what one is trading in.

[dgriffin]

Yup, you're right. So, the car dealers' program accomplishes only a stimulus of the economy, and not necessarily any fuel savings. Some people will buy more fuel efficient cars, but we'd probably be surprised at the number who won't.

[clarencebunsen]

My wife has been making noises about getting a different car (Truth be told, she gave me a list of cars that appealed to her and told me to make it into a short list. I do get some input.) Since we have been driving the same 4 cylinder sedan for 10 years now, it would meet most reasonable definitions of "clunker." However with a 4 it doesn't meet the US government definition.

I'm not asking for help in buying a car. I've done it by myself up until now and see no real need to change. I do object however to being required to support others because of their wasteful past habits. If they can manage with a Prius now why did they need a Suburban last month?

[dgriffin]

I haven't been following this close enough to know the qualifiers. I remember reading a clunker had to get 18 mpg or less. That would be true of my 8 cylinder Tundra (truck). But it's only 5 years old with 50K miles (I gotta get out more often!) and I wouldn't call it a clunker. Would it qualify?

[clarencebunsen]

Your trade in can't be more than 25 years old. If it is worth more than $4500 there is no incentive to do it since you will be taking the hand-out instead of a trade.

You can get the official mileage rating of your vehicle at www.cars.gov.

If you don't qualify or are otherwise unhappy there is a petition at
www.nocashforclunkers.com/
I'm sure it will be given careful consideration (insert visual of electonic email shredder0>

[dgriffin]

OH. That's how it works. You get $4500 INSTEAD of the trade-in value. So, if you overdid it and bought an expensive SUV for a year or so ago, the trade-in value would likely make the Clunker Program not worthwhile.

[dgriffin]

From Wiki, here are the top Clunker Program trade-ins and the top sellers as of August 3.



I'd really like to see some demographic info on this some day. Age, income, education, part of country, income level, etc.

[clarencebunsen]

Edmonds comes up with a significantlydifferent ranking

www.nocashforclunkers.com/

Their methodology is different, they count all variations of a model together, the NHTSA splits them up. Using Edmonds method the 6 variations of the Ford Escape become #1, the Ford F-150 #5, & the Chevy Silverado #7. Edmonds list is dominated by SUVs & trucks.

[dgriffin]

Hahaha! I just love "The Cash For Clunker Blues!"

[stoney]

Right, Dave. If we had known about this program last year, we would have waited until this year to buy a new vehicle. Oh, well.

We'd trade in my car for this program, but it doesn't qualify. Hell, it gets 30 mpg. city driving, so we'll just run it into the ground. ;D

[clarencebunsen]

USA Today brought up a point I hadn't considered (It was available in the motel lobby when I went for coffee. Bad coffee & pop journalism, what a start to the day.)

By removing 1000's of "clunkers" from the road, the average price for used cars is increasing especially at the low end. (Supply & demand plus selective removal). Thus the program manages to hurt the people who can only afford a "clunker" while helping the more affluent to afford a new Prius. Call it a reverse Robbin Hood.

[dgriffin]

True, modern America consists of moving money around from one board square to another. Other people's money, usually. Our local paper carried an interview of the owner of an auto repair shop who says the Clunker program is also costing him business. Instead of taking their clunkers to him for repair, he says, folks are buying new cars. Also, instead of borrowing that much more money from the local bank, a new car buyer would be receiving it as a discount. Theoretically, local gas stations will pump less gas. The list of everyone affected must be endless.

[dicklaurey]

I understand that the Japanese love our "Clunker" program.
Of the 10 popular trade-ins, most are American cars, and, of the 10 most popular new vehicle replacements, most are Asian cars.

[stoney]

Well then maybe America will start producing better vehicles.

Afterall, most of those "Asian" vehicles are made right here in America, using American manpower.