House OKs $2 billion more for 'cash for clunkers'

[jefferson_dem]

House OKs $2 billion more for 'cash for clunkers'
After a surge of car sales drains the program's funds, legislation is rushed through to provide additional money. The Senate still has to act.
By Martin Zimmerman and Tiffany Hsu and Jim Puzzanghera

10:56 AM PDT, July 31, 2009

Reporting from Washington and Los Angeles — The House today approved an additional $2 billion for the government's "cash for clunkers" program, moving unusually quickly to replenish the program after overwhelming demand from consumers left the initiative in danger of shutting down because of lack of funds.

The 316-109 vote showed the strong bipartisan support for the program. The Senate could take up the bill next week. But supporters hope that cash for clunkers can continue to operate, knowing that additional money was in the pipeline.

"Thanks to quick bipartisan responses, we're doing everything possible to continue this progam and to help consumers and the auto industry contribute to our recovery," President Obama said shortly after the House vote. He noted that cash for clunkers has succeeded "well beyond our expectations" and had caused "a dramatic increase in showroom traffic at local car dealers."

Congress had appropriated $1 billion for the program last month in hopes it would spur auto sales by offering $3,500 to $4,500 rebates to consumers who traded in their vehicles for more fuel-efficient models. In less than a week, sales and pending orders have used up nearly all the money.

"The American consumer has taken cash for clunkers on a test drive and . . . they want to continue this program," said Rep. Steve Israel (D-N.Y.), one of the sponsors of the original legislation.

Lawmakers and Obama administration officials were scrambling as the day began to find more money before the House shut down for its August recess and to reassure weekend car shoppers. The House bill transfers $2 billion into the program from a $6-billion Energy Department loan guarantee fund to spur innovation in renewable energy technology.

The loan fund, which was set up as part of the $787-billion economic stimulus legislation this year, will use only half the money this year, giving Congress time to replenish it, said House Speaker Nancy Pelosi (D-San Francisco).

The Senate is in session another week.

Democrats and Republicans praised cash for clunkers as a needed jolt to the economy.

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http://www.latimes.com/business/la-fi-cash-for-clunkers1-2009aug01,0,4733785,print.story

[alcibiades_mystery]

1. There must be some mistake

I heard from both right wingers and DU Obama Haters that this program sucked ass.

:rofl:

All but the most entrenched R's in Congress know they'll be dead in the water on election day if they're on record voting against this massively popular and successful program. But for DU Obama Haters, it is all "dealer fraud" (I shit you not) and gimmicky "funds have almost run out" marketing! It tells you something about their judgment.

[Thrill]

2. Everyone's favorite Democrat Claire McCaskill says she will vote NO

for more money for the program.

[TomCADem]

3. Personally, I Was Disppointed That It Ran Out Of Money, I Have A 10 Year Old SUV...

...and with the economy down, I assumed that I could take my time to take advantage of the program. So, I was more than a little bit surprised to hear that they had already used up their allotment.

I thought we were in the middle of a recession. I thought that my fellow Americans would kind of kick back on buying cars, so I would have some time to look up on Edmunds.com for my ideal replacement car. But noooo.., Everyone had to rush into a showroom, turn in some clunker, and buy a new car.

I guess that was the point of the program, but still...

[sandnsea]

4. 25%, or so, are never in a recession

I hope this helps boost the economy and I support it for that reason and for the environment. But I still think this is another give-away to the most well off and the poorest are going to continue to be stuck with their clunkers.

[RaleighNCDUer]

5. For that aspect of it, maybe, but it also means the dealerships

stay in business, that the car manufacturers don't have inventory sitting out in the parking lot waiting for dealerships to place orders, and the manufacturers can therefore keep the production lines working because the cars that are being built are being sold. It helps a lot of people other than just those who can afford to buy a new car (at a 25% discount).

I just wish I could take advantage of it - but the money I've been putting back has been instead going to my daughter who has been unemployed for nearly 3 years, so I can't afford to take on new car payments even at reduced rates. My '98 Sentra is going to have to keep plugging along.

[sandnsea]

6. I support it because it "helps boost the economy"

That would be the factory workers and dealers and employees and the dispersion of their increased disposable income through to the local businesses.

But as far as directly helping the people who really need it, like you and your daughter, it isn't.

That's exactly what I just said.

[TomCADem]

7. Really? Would A Rich Person Drive A Clunker With Less Than $4,500 In Trade-In Value?

CNNMoney.com has a nice story analyzing whether it makes sense to use the cash for clunker program. The bottom line is that if you can get more for a trade-in, then it does not make sense to use the program. For example, a ten year old Mercedes Benz that is still worth more than $4,500 should be traded in, rather than scrapped.

So, if there are bunch of well-off people driving beaters with less than $4,500 in trade in value, then kudos to them for turning their back on materialism.

[sandnsea]

8. Most manufacturers are matching the $4500

So it's a $9,000 trade. I'm not talking about the 2% who are driving a Mercedes, I'm talking about the top 25% who maybe gave their 5 year old clunker to one of their teen-agers, and will now get a $9,000 trade on it. They're the ones who will benefit, not the bottom 50%. It's tough for the bottom 50% to even get a car loan right now.

If this is what it takes to get the economy going, fine. But let's not kid ourselves about who is getting the benefit here.

[earth mom]

9. This program should only be for American made cars. nt