"cash for clunkers" program

[crappieking54]

the response to this program has been overwhelming to say the least... We are happy for all of the new vehicle sales but also nervous about getting our vouchers from the Gov. If this program does not go as planned, my dealership I work for will be out many thousands of dollars and I might be looking for work!

[harvey lee]

I'm sure the goverment will pay the dealers all that is due them.

[matthothand]

Think about that.

Who pays the government?!

Sure this benefits the person that wants a new car but, I bought a new car a year ago and I don't want my government to finance somebody else buying a new car with my money as I'm paying for my car. If you don't need a new car this doesn't help you. The government shouldn't be picking 'winners' and 'losers'. These credits are paid for by someone somehow. It's us. At the worst time. They are propping up the auto industry. What happens when everybody gets these new vehicles? Do you think the failing auto companies are gonna sell very many cars next year? After everyone gets a new car this year? How about the local repair shops that don't have any cars to repair? What happens to those jobs? You guys need to pick up the wall street journal, watch Fox, or study economics. You either get it or you don't. This administration is doing the opposite of what needs to happen. We have to think that just because it may benefit us right now it isn't free. Everything has a cost. And, what will be the effects of this? Think about these things. The spending. Where it comes from. How it will be paid for. Spin your wheels.

[Jeremy airjer W]

It just sickens me that we have to destroy perfectly good vehicles that are in good or better running condition. Look at how many cars you see on the freeway that shouldn't be there! You know the ones I'm talking about.

Lets ignore all those vehicles that shouldn't be on the road due to the many safety issues they have and lets get rid of vehicles that are leaps and bounds in better condition to "help the environment". I don't buy it!

When the money runs out and there back to selling no cars then what?

If this really is a cash for clunkers program than lets get rid of the clunkers!

[Hafnutz]

I totally agree with airjer. There are thousands of people out there that just can't afford a new car. They would gladly trade their "junker" for a "clunker". This is one of the stupidest programs this administration has come up with yet. But hang on folks there's more to come.

[swamptiger]

Classic example of your tax dollars at work...

I'm sure a lot of people would love to own that Jeep.

[love2fish4ever]

This program sort of irritates me as does the $8000 cash back for a new home. They are enticing people to go out & get a loan for a car or a home they are not sure they can make the payments on for the number of years the loan is for, unless you are CERTAIN you're income will remain the same or increase during that time. If you are not CERTAIN of this (& how many of are), then you should stick with the "PAID FOR" vehicle that you own now until better times. Debt & spending is what makes the economical world spin, but you need JOBS & guarantees that the incomes can support the debt created. This illusion of "worth" is what supported the "great times" in the last five years that finally caught up & now we are paying for it. People buying things they TRULY can not afford, but we are going to start it all over again. LIVE WITHIN YOUR MEANS< but that's not what they want you to do, it's not profitable for the economy, but go ahead, they just "bail out" those that are irresponsible & make bad decisions anyway right? Sorry for the rant, but am I right?

L2f

[luckey]

L2f,

I agree with your general thoughts here. However, I also don't condem people for taking advantge of the offer(s). In your "rant" you forgot to mention the $1500 tax incentive for windows, AC, furnace and/or insulation. How about unemployment, seems to be a bail out for those who don't have a job. There are many, many programs that just pour $$ down a hole. (any idea where the $787 Billion is going$). Anyway, at least the cash for clunkers is making a direct impact on those who are able to take advantage. I supose if you are truly against any "bail out" you would not accept any or deal with any company or product that is involved with bailout type funds. Then again, it's never a good idea to cut off your nose to spite your face. If it there, legal and offered, why not take advantage of it.

[love2fish4ever]

Luckey, you make some very good points. Unfortunately some of the "bail outs" don't make it to the people that need it the most & is given to large corporations that continue to spend it unwisely. By all means people than can take advantage should, but it seems, it's making some people that are finacially on the edge of making it & have a decent running "paid for" vehicle to go into debt to "save money" & hope they will have hours or a job to support the debt. Drowning people will grasp at any rope thrown to them regardless of what's at the other end. Unemployment is a great program if used properly, but far too many use it far longer than they should. Seems there should be more money given to create jobs & create incomes & people would go out & borrow even without incentives. Kind of like filling a lake with fish based on the promise of "the water is coming, just give it time". I don't pretend to have all the answers, just trying to make sense of it all. Although our need for "instant gratification" doesn't help. L2f

[luckey]

I guess I never thought of the program enticing people who cannot afford a new car to buy one anyway just to save money. Seems like thats why they may be on the edge in the first place. Although there is some truth in the saying regarding a drowning person grabbing on to a rope regardless of whats on the other end. My wife did say what's going to happen when these people stop paying for their new cars. I guess if you couldn't afford it last month, you probably can't afford it this month and most likely will not be able to afford it next month.

[croixflats]

It sounds like its a bit tougher to get a loan for a car right now. Its not like anyone can go in and get a loan and drive off in a new car.

[Jeremy airjer W]

It sounds like its a bit tougher to get a loan for a car right now. Its not like anyone can go in and get a loan and drive off in a new car.

Hmmm, I think there are a billion reasons to prove you wrong on that one?!?!?

[croixflats]

Maybe $3 billion? All about perception.

Granted unemployment is up and the economy is down but this shows me there are many out there that can afford things like a new car its only they are holding onto their money (not saying they are wrong here) as they dont know the future.

Maybe this could be the kick start to those with money loosening them purse strings.

Granted I dont know who is going in and buying cars but it does no good casting assumptions that many who cant afford new cars are buying them because they can.

I have not the moral high ground to decide who can and cant afford a new car.

[love2fish4ever]

I'm just basing my observations on the number of people who were buying homes,cabins, vehicles, boats, jet skis during the "prosperous times" based on the inflated equity that many people knew couldn't be sustained for the duration of these debts created. The economy is cyclical, but many people bought many things based on their current incomes (then) Many of whom were younger & have only seen the "good years" not knowing that that may not be the case 5-10 years from then. I know the days of "save up" the good down payment on what you may want to purchase & then buy when you truly can afford it days are gone, but for a long time, it's just "finance it, & get it NOW, "why wait!" Always good for sales, but they really don't care if your life changes later & can't afford it anymore. People that have money, have it for a reason, they spend wisely, (unless it was given to them, then maybe not.) Luckey, your wife is exactly right. You'd like to think that this crash was a valuable lesson in managing your financial life, but we seem bound & determined to get this economy going by creating debt instead of employment first, in time people will borrow & buy. Just because someone would be willing to give me $10,000 for my average '98 boat & trailer, so that I will take out a loan & buy a $30,000 Ranger, doesn't mean I should, but it's sounds like a heck of a deal. I'm not wealthy by a long stretch in fact I don't have that much money at all, but I own what I have & am satisfied knowing I can survive tough times until things get better without losing anything. Don't buy into all the hype...common sense will prevail. No, I do not mean to pass judgement.

L2f

[swamptiger]

Went to town yesterday and I noticed a large number of vehicles disappeared last week sometime on the lots of a couple of local new car dealers. One is a Chevy dealer, and it looked like all the used trade-ins were gone, and a good number of the newer GM products. The other on is a Chrysler/Honda dealer, and nearly all of the Chryslers were gone - lots of Hondas still on the lot. Just thought it was sort of strange, and wondering if anyone else noticed anything like this anywhere else, or if anyone might have an idea what's going on...

[BoxMN]

You are a wise man "L2f" I don't see it as passing judgement, just giving sound advice to any who will be wise enough to take it.

BTW - our "newest" boat is an '97 and long been paid for...

[TR21]

There is a real problem currently. The cash for clunkers program wiped out the inventory of many dealerships around the metro. In speaking with a couple of friends of mine who sell for these dealerships, their concern is what do they have for inventory to sell should this next 2 billion come to fruition?

The 2009's are gone and the 2010's are just starting to get built so they may be looking at furloughs till some inventory arrives come September or October.

[love2fish4ever]

And as long as it runs well & suits your needs, the money your not spending on a new shiny boat, you can spend going to great fishing places or tricking out the accessories (newer depthfinder, GPS, or whatever else makes fishing enjoyable once in a while. I have a nice looking boat in good shape, but that is only second to reliability. I'm not knocking anyone who does have awesome boats, it's all about what does it for you.

"It's better to want what you have than having what you want."

L2f

[vern]

Think about that.

Who pays the government?!

Sure this benefits the person that wants a new car but, I bought a new car a year ago and I don't want my government to finance somebody else buying a new car with my money as I'm paying for my car. If you don't need a new car this doesn't help you. The government shouldn't be picking 'winners' and 'losers'. These credits are paid for by someone somehow. It's us. At the worst time. They are propping up the auto industry. What happens when everybody gets these new vehicles? Do you think the failing auto companies are gonna sell very many cars next year? After everyone gets a new car this year? How about the local repair shops that don't have any cars to repair? What happens to those jobs? You guys need to pick up the wall street journal, watch Fox, or study economics. You either get it or you don't. This administration is doing the opposite of what needs to happen. We have to think that just because it may benefit us right now it isn't free. Everything has a cost. And, what will be the effects of this? Think about these things. The spending. Where it comes from. How it will be paid for. Spin your wheels.

Matthothand is correct. In my opinion, this is just a short term fix that bails out the auto unions at the tax payer's expense. We're all going to pay for this. Destroying quality used vehicles is ridiculous! This will kill jobs for used car dealers, parts dealers, repair shops etc. They also claim that this will help the environment by reducing fuel consumption, but I guarantee you that people will just drive more if they get better mileage.

[Big Buck Buster]

I just got done watching many videos on the cash for clunkers engine destroying. It is just a shame to see all the vehicles that are in excellent condition destroyed like that. I am pretty sure that the volvo that they were destroying in one of the videos got really good mpg. To me that shouldn't have qualified for the money.

JUST A COMPLETE SHAME!!!!

[BobT]

The mileage of the trade in isn't really that important. What is important is that the trade is a trade up in mileage.

This is one part that I can't quite figure out. Why only a 2mpg upgrade is required? We have been sold on the idea that this policy is intended to help move us toward a greener society but only 2mpg isn't much. Seems that we should have required at least 5mpg to truly be beneficial.

I bought a new vehicle a week ago and I was talking to the salesperson about this program. I know him rather well and we were having a pretty frank discussion.

Here's how he put it to me.

Quote:

As a salesman/dealership I love it. We are moving a lot of new vehicles and we are making some money after a pretty slow period.

As a tax payer like you (referring to me) I hate it. Each of us is now giving someone that has a worthless vehicle $4,500.00 for it and then crushing it, which means we can't recoup that $4,500.00 by reselling the vehicle. You (again me) still have that old 1985 truck sitting in your trees that you plan on salvaging, right? Had it been licensed, insured, and drivable for the past 12 months you could have traded that piece of junk in for $4,500.00.

Edit: Oops, clicked submit too quickly.

We tax payers are gambling on one thing. That we will recoup the cost of these buy-outs by the hope that this program will start a chain reaction that gets this economy moving forward again. I have my reservations. It seems like a short-term fix for a long-term problem and those don't usually work well. How much economic growth did we see when we all got our stimulus checks? How about the mega-trillion dollar stimulus packages that congress passed? Personally, I think these things must run their course and someday we must come to terms with the reality that we can't buy our way out of our problems even by going into debt over our ears to do it. Which, by the way, is a major reason we got into this economic mess in the first place.

Now, as even mentioned in this thread, dealers and buyers are taking chances that the money will be there and signing contracts without any guarantees. The buyers are responsible for the $4,500.00 if the government fails to come through and so we could see a lot of repossessed vehicles later down the road. Kind of sounds like the housing situation all over again, doesn't it? Don't we learn anything from our mistakes?

[IFallsRon]

If you were wondering what America was going to do with all those Ford Explorers, wonder no longer. We're euthanizing them by the tens of thousands.

Of the top 10 vehicles traded in since the "cash for clunkers" program went live in late July, six are different model years of the once-ubiquitous Explorer, according to data collected by the Department of Transportation and reported by the Jalopnik automotive blog. Lumped together by nameplate rather than model years, its death-row companions include the big Ford F-150 and Chevrolet C1500 pickups, the Chevrolet Blazer SUV, the Jeep Cherokee and Grand Cherokee, plus the Dodge Caravan and Ford Windstar minivans.

That lineup pretty much matches the clunkers at my dealership.

[Scott K]

I was amazed that there were that many of those old model Explorers still on the road.

[Jeremy airjer W]

Fortunately there are still to many of them left on the road. For some reason they like to show up at my shop?

[Valv]

Actually many are not "euthanized" they are sold to scrap dealers for parts. Many insurance auctions are accepting applications to dealers to buy them.

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Cash for Clunkers

The President has signed into law the CARS Act of 2009, also known as "Cash for Clunkers" program.

Based on the participation of the ELVS (End of Life Vehicle Solutions) program, you may be eligible to purchase the trade-in vehicles for disposal. If you are already on this program list, please email us with your Copart buyer ID and unique license ID so we can make proper adjustments to ensure you are eligible to purchase these vehicles. If you are not listed on the program yet, go to the CARS HSOforum to find out how you can register to participate.

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