Cash for Clunkers program suspended 3 months early - too successful

[grantcart]

The program that helped provide incentives for people to turn in low efficiency cars for the purchase of new cars was to last through October.

However after only one week they are projecting that the total fund of $ 1 billion has already likely been committed. Although only 22,000 cars have been processed it is estimated that another 220,000 buyers have already entered the system to collect $ 3,500 to $ 4,500. and that the promotion now needs to be suspended.

The Obama administration is telling lawmakers that its much-touted "cash-for-clunkers" program is already running out of money and will be suspended Thursday night, according to three Senate aides familiar with the discussions.

The program - aimed at giving at boost to the U.S. auto industry — was supposed to expire at the end of October. But in the one week since it took effect, it appears to have run dry of the $1 billion allocated to it, aides said Thursday.


The White House will need to decide whether to push for more money at a time when it's also pushing an ambitious and expensive domestic agenda - or let the program fade after it was touted as a way to help Detroit while improving the environment.


Last Friday, registration began for dealers who wanted to participate in the program, which is intended to encourage consumers to trade in their old cars for a credit program to purchase new fuel efficient cars. Under the rules that went into effect last week, the purchased vehicles must be 2008, 2009 or 2010 models, and the vehicles must be purchased between July and November to qualify. And consumers would be able to receive a $3,500-$4,500 discount from car dealerships when they trade in their old vehicles and purchase a new one.



Read more: http://www.politico.com/news/stories/0709/25638.html#ixzz0Mn5ODzUb

I say put in another couple of billion and keep the factories going with the side benefit of lower emissions and reduced demand on gasoline.

[alcibiades_mystery]

1. Sounds like a massive success

Which means that you'll hear almost nothing about it in GDP - unless, of course, Z Magazine prints a critique.

[BlooInBloo]

10. Au contraire. They think it's a scam ("buy now! money's running out!")

:rofl:

[glowing]

2. I would too.. cut emissions and move some cars. Helps on two fronts.

A lot of the dealers around my area are matching the amt... or giving the $4500.00 toward the movement of SUV's.. so its not all great.. and some consumers are finding out that their clunker, barely running old car, does not qualify because the car they are driving doesn't have the correct mpg rate.. but because of the other deals, they are trading in and getting a new car.

On Edit: the one thing that I'm not so sure about is providing the cash for foreign autos? I know we have some plants in the states, but does it make sense to put up USA money for foreign autos? Not sure about that one.. But Nissan is touting with the cash for clunkers a $13,000.00 altima with the buy back and their matching amount. I'm thinking of trading in the X-terra.. but I guess program is suspended.. so guess not unless they keep up the program. Oh, and tax the rich who still drive around the Hummers and Escalades for the program... They aren't concerned with their toxic fumes, let them pay for the rest of us to chip in on our American Patriotic Duty to help protect our country and environment.

[SeattleGirl]

4. That's what I'm going to try and do. My car does not qualify,

but I'm looking for dealers that have a matching program, and will kick in the $3500 to $4500 even if your car doesn't qualify as a Clunker.

[sandnsea]

11. Electric cars have money, plus sales tax deduction

Consider a new Plug-In Vehicle, save money on the purchase and save on gas. You have until December 31, 2014 to make that decision, lots of time to learn all you can about the technology. The tax credit starts at $2,500 with another $417 for each additional kWh. You can also get a 10% credit for the cost of a plug-in conversion kit.

Finally, don’t forget your vehicle sales tax deductions which are good on the purchase price up to $49,500..

http://www.obama-mamas.com/blog/?p=325

[Uzybone]

3. another failed government program

has the Obama admin done anything that has worked yet???


:sarcasm:

[DrToast]

5. Yep, keep it going. That's a lot of stimulus, too

I'm sure some of those people were buying cars anyway, but it probably also convinced others now was a good time to buy.

[4lbs]

6. They should add another 3 or 4 billion dollars and keep it going.

In fact, if I remember correctly, the original fund was to be about $4 billion, but fiscal conservatives in Congress trimmed it down to $1 billion.

[bbernardini]

7. I'm very concerned about this...we're supposed to pick up a car tomorrow using this program.

We gave the guy all the paperwork on Wednesday, but he was off today. If the deal doesn't go through because he was off, we're going to be very upset. (Don't get me wrong...I know he deserves time off as much as anybody else.)

[MercutioATC]

9. The program is being closed to NEW applicants.

You're fine.

[bbernardini]

13. Our concern is that he didn't put the paperwork in yesterday.

If he waited until tomorrow, I'm afraid we won't get in.

[MercutioATC]

14. Again, you should be fine.

Government programs have a lot of slop built into them. Even if they DID shut off all deals starting today, no dealer is going to let a little thing like a date written on a piece of paper kill a deal.

[bbernardini]

15. I appreciate your optimism.

It nicely balances out my genetic imperative for negativity. :)

[MercutioATC]

16. Please post what happens tomorrow...

...and I understand your predilection, but I really think the deal will go through.

[Gold Metal Flake]

19. Man, dealerships are open late. Call them now.

Get with the sales manager and talk about it. Confirm your place in line NOW, don't wait.

[DRoseDARs]

22. If you DO run into a problem, call your congresscritters and (politely) complain.

Clearly this program was successful and you would be right to be angry if you were unable to take advantage of the opportunity because of this development.

[TTUBatfan2008]

29. So what was the deal?

What did you trade in and did you get the full $4500? And what kind of car are you getting? My parents traded in my dad's 1994 GMC Sierra and got the full $4500. They also traded in my mom's 2002 Altima for $2800 (which my dad had been driving...my mom currently drives a 2006 4Runner). They got a 2009 Mazda 6. I bought a 2009 Chevy Malibu in late September, and then immediately lost my job the following week due to the economic crash. Luckily I got an even better job 3 weeks later, but I was panicking big time. I hope the deal goes through for you and hopefully you get a good car.

[sandnsea]

8. Increase the mileage requirement

And keep it going.

[MercutioATC]

12. For the "clunker" or the new car?

Actually, if getting gas-guzzlers off the road is the primary goal, trading any car that gets less than 20 MPG for a voucher that can be used toward a new OR USED car that gets more than 30 MPG would do a lot of good...and it'd aloow lower-income people (the ones who own a lot of old gas-guzzlers) to participate.

[sandnsea]

17. Oh holey hell, we agree again

That's the ideal plan. But if they want a boost to the car industry, the new car part is fine. They should have made the mpg 30 though. It sure seems like they live in some kind of alternate reality sometimes.

[MercutioATC]

18. I'm getting soft...this is the second time this has happened to me this week.

A friend at work participated in this plan a couple of weeks ago. He traded in an old Jeep for a new Sebring for a $3500 voucher.

He got $3500 to switch to a car that got him an extra 9 MPG...

...and he makes about $170k/year.


He DID get an older, less fuel-efficient car off of the road, but he also now has payments on a new Sebring (which HE can afford, but many people can't).


If they had mandated that the voucher could only be used to purchase an "American-made" car, I'd have disagreed with the restriction but understood the motivation. As it stands, the current program just seems like more political bullshit than anything else.

[sandnsea]

26. A Sebring. An arrow through my heart.

That ought to make you feel better, lol. That's my dream car. Although I like the ones that are about 5 years old better than the new ones.

They aren't just handing out loans these days, unless the dealerships are. My son has no debt at all, but screwed up on a medical bill so the bank won't loan him anything without a co-signer. I think most of these will go to people who can afford them.

[MercutioATC]

27. My tastes differ, but I understand having a "dream car".

Sebrings should be reasonably priced, in light of the Chrysler bankruptcy. I honestly hope you find the means to get one.

Getting your dream car is a great thing :)

[grantcart]

21. I believe that neither is fixed but that you have to have something like a 10 MPH improvement

so that if you brought in a car getting 25 mph you would have to buy one that gets 35.

Not sure 100% though.

[MercutioATC]

23. 5 MPG - 9 MPG gets you the $3500 voucher. 10 MPG or more is the $4500 voucher.

...at least, that's my understanding.

[sandnsea]

25. The "clunker" has to be 18 mpg

based on the federal rate the year it was bought. So my son's 1997 Taurus, which was rated 20 mpg new, doesn't qualify. Then they based the amount of the rebate on how much mpg improvement there is, and I think there is a minimum mpg too.

[madamesilverspurs]

24. I'll second that.

It's frustrating that my vehicle qualifies for the program, but I don't.

[4lbs]

20. I would be for adding say $5 billion more to the program and making various levels of rebate

depending on the mileage of the car you buy.

So, if you want a larger rebate, get a car that gets more mileage.

Buying a car that gets only 22mpg to 25mpg gets a $4,500 rebate on your clunker.

Buying a car that gets at least 30mpg gets a $8,000 rebate on your clunker.

Buying a car that gets at least 35mpg gets a $10,000 rebate on your clunker.

[anonymous171]

28. I agree with your proposal. K&R .nt

[grantcart]

30. now reported that it will continue with new funding to be approved on Monday

[BlooInBloo]

31. Yep. Good to see a working program receiving continued support.

[mkultra]

32. mumble mumble SOMTHING NEGATIVE mumble OBAMA

[RichardRay]

33. $2B added to the program to sustain it

WSJ Article