‘Cash for clunkers’: Buy a new car this weekend?
The “cash for clunkers” program is now in the hands of the U.S. Senate.
It has to approve $2 billion more in spending, like the House did last week, or the program will end, U.S. Transportation Secretary Ray LaHood said.
Should the Senate kick in the additional money?
Have you taken advantage of the program? What has your experience been?
If you’re a salesman or saleswoman, how swamped are you? And how are you feeling after this long dry spell?
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52 comments Add your comment
BigJake
August 3rd, 2009
8:28 am
More rewards for bad behavior at the cost of the taxpayers. First, people who could not afford their mortgages are bailed out by the taxpayers, and now, people who drive gas guzzlers are being bailed out by the taxpayers, along with the automakers, who have ignored, for the most part, the market for better gas mileage vehicles in favor of the Hummers, Escalades, etc. And mark my words, the level of fraud and deceit that an analysis of the CARS program will eventually reveal will be astounding. Dealers eager to unload their inventory will likely not stick to the rules when it comes to which vehicles qualify, just to get the deal done with the consumers. They will turn the attention on how difficult it is getting rebates, processing paperwork, boo-hoo, boo-hoo.
Guzzler
August 3rd, 2009
8:34 am
I had looked into getting a new work truck a few months ago.
I struck a really good deal on an ‘08 leftover Ford E-150.
But I could not find anyone willing to pay me what I thought my ‘96 E-150 was worth for a down payment.
Then the clunkers program came into being and I now have the ‘08 leftover with a better deal than before and the $4500 clunkers money as the down payment.
Although it breaks my heart that my old truck, that I meticulously maintained, will be scrapped.
Observant
August 3rd, 2009
8:37 am
If ” Big Jake” had read the rules of the C.A.R.S. program he would see that fraud is near impossible and carries a $15,000 fine, to the dealer if caught.
BigJake
August 3rd, 2009
8:45 am
I consider myself pretty observant, and history tells us that the car dealers have not always followed the rules. If you think that they will adhere to the T’s and C’s of this program, I have some swampland in Florida that you might consider a tropical paradise…
ray
August 3rd, 2009
8:47 am
I cant belive what a waste this program is.To take a good vehicle and destroy it for no reason other then to apease a few envorimental nuts is is just plain dumb.And i gaurentee the dealers participating in this program will never see half the money promised by the goverment.I would not destroy one single car untill I recived the money for it,And when that money did not show up I would resale the car.I feel sorry for these dealerships that will go bankrupt waiting on money from a already broke goverment.
Tomhere
August 3rd, 2009
8:52 am
We’re spending TWO BILLION a WEEK on the republican program: OCCUPATION OF IRAQ.
How’s THAT working out?
Well, the ONLY thing that’s “just plain dumb” is the naysayers here.
They’re angry because the CAR DEALERS, and CAR COMPANIES and WORKERS are profitting from this, and not their warmonger profittering criminal friends.
Looks like the white-wingers lose again?
Dottie Hoppen
August 3rd, 2009
8:58 am
Thanks Big Jake – my sentiments exacrtly. I certainly could use a new car I have a preowned 2003 Avalon that replaced an 86 4runner– but can not afford to buy – so tell me why I am paying to buy a car for someone else??? Is our American public so stupid (to use Obama’s words)that they don’t know from where all this cash comes that is being doled out so liberally by the Feds???
constance shepard
August 3rd, 2009
8:58 am
i have a car already but i want to turn it in and get a new car if i could 6 cil, i do not no how this works but e-mail and let me no
Road Scholar
August 3rd, 2009
8:58 am
Ray, not only does it provide cleaner air, but it provides better fuel mileage, which reduces our dependancy on foreign oil. Thirdly it will stimulate the auto industry to get recent models off the showroom floor, and to spark making newer cars replacing them, thus, it stimulates the new car market. A fourth item is obviously people are getting new financing, which is helping unlock the credit market.
Big Jake: I’m sure there are peple looking after the validity of use of the program. Do you not think we learned something with the financial fiasco? There is always fraud and deceit by some, but enforcement of the rules is needed, with following up with punishing the violators.
Where is this not needed?
The Professor
August 3rd, 2009
9:11 am
I personally have no use for the program, but, if it stimulates new-car sales, then it might have merit. I would rather have federal money spent on this than wasted in the Iraq war. And, BTW, I just bought a new car myself a few months ago. Paid nearly $50,000 cash for it. None of which was taxpayer money.
ray
August 3rd, 2009
9:12 am
There are familys out here white and black that dont have and cant afford a car new or used.Why not give these cars to them?That would actually be helping someone instead of taking money from people who work for it to give to people who sit around and watch jerry springer all day.And by the way tomhere your use of race to make a point shows us who the real racist is.
Works For Me
August 3rd, 2009
9:16 am
So you think my son’s 97 Cherokee was a perfectly good vehicle. Want to buy it for $4500? I didn’t think so. He traded it for a new Honda Insight. He just tripled his MPG, helped the dealer move a car off the lot, gave his salesman a commission, paid the partial salary of the finance manager, receptionist, and service tech who put on the accessories he wanted. Not to mention his ad valorem taxes will be higher which increases the state’s revenue. By getting $4500 instead of $500 for his car he has certainly done his part to stimulate the economy. What have you done lately? Oh, by the way, the dealership was meticulous in getting all the appropriate paperwork for the CARS program. We did our part and they did theirs.
ray
August 3rd, 2009
9:21 am
The problem road scholar is the I dont belive the goverment will hold to there end of the bargain.You have to admit there track record is not very good.And I am talking about repubs and dems.The goverment has a long history of lying to us and if you think this admin is any different then you have a lot to learn.What happens when the money these dealerships have been promised does not show up?More bussiness closed and more people unemployed.Count on it.
Mark
August 3rd, 2009
9:25 am
Which is worse for the environment?
1) Driving that old car that gets 4 or more less MPG than the new car?
2) Consuming all the resources that go into producing a new car?
If recycling is to be a part of helping the environment, this “plan” really eliminates a lot of automotive recycling by ruining the engine in the trade in.
ray
August 3rd, 2009
9:26 am
So what you are saying works for me is your son got something he did not deserve?Who do you think pays the extra money that your son got?ME!how does that help the economy to take the money I worked for and give it to someone who did not earn it?That hurts the economy in the long run not helps it.But I gues people want what other people earned as long as it benifits them huh.Good luck with that over the long haul.
TC6483
August 3rd, 2009
9:30 am
The shame ot it all is, they are stimulating the foreign car market, not the US market. I think the $4,500 should only be paid out, if you trade for a Ford, GM or Chrysler model. Yes, I know there are’nt many fuel effecient cars from the big 3 out there. Double yes to THEY didn’t build small cars. Punish management for this, they are the ones got us into this big mess, and are still making money, while the little man watches his world fall apart.
Old Gold
August 3rd, 2009
9:35 am
I hope you guys are enjoying your new cars that you probably can’t afford. This is just the spark for the next credit crisis 10 years from now when you’re all in bankruptcy. I’m glad my tax dollars could help in your “I am entitled to a new car” search. 22 pages of paperwork, server crash, and they ran out of money in 4 days. I CAN’T WAIT until the government is running the health care system. It’ll be just as well managed.
ray
August 3rd, 2009
9:42 am
How about we let the big three and all auto makers for that matter decide what cars they build since this is still a free country.If the consumers decide they want to buy their product they will.And if they decide not to then they can adjust to what the public wants or go broke.Thats called capitilism and its what this countrys economy was founded on.We can not make it long on the robinhood mentality we seem to have these days.Do you people really want to be like all the other countrys that are failing?these are not new ideas these are ideas that have been proven NOT to work in many other places.Wake up America before it is to late.
T
August 3rd, 2009
9:48 am
I would have taken advantage of this program, but they limited it to cars less than 25 years old. Don’t people realize there are some cars out there older than that?
Road Scholar
August 3rd, 2009
9:54 am
TC6483: Those “foreign cars” are probably built in the US!!!!! Jobs are at stake! And the “foreign car” manufacturers are reinvesting their profits in America!
Ray: so we need to ensure the program, as well as others, are policed adequately. You will never get all violators, but keeping it to a minimum is desired. It is interesting that the dems have been mostly supportive of this program, while the repubs are split. America’s future is not Demo or Repub…it is our future.
I don’t understand your comment “What happens when the money these dealerships have been promised does not show up?”. Don’t take possession if the deal is not guarenteed and the rebate is in hand!
TC6483
August 3rd, 2009
9:59 am
HELLLLOOOO Ray, the big cars, is what the consumers been buying, and the Automakers couldn’t build enough of them. THAT IS, until the gas shot up to $4. THEN, everybody decided, OMG, we need a smaller car. As you may have noticed, the same thing happened with the houses. They couldn’t be big enough. The motto was: I have 2 Children, I need 4 bedrooms, a playroom, a familyroom etc….. BTW, we picked up this program “cash for your clunker”, from Europe, and it seems to work well over there.
ray
August 3rd, 2009
10:03 am
It is simple the goverment has already said it is out of money yet people are still selling cars under the program.Where is the money going to come from if they are already out of it?I guess they can steal some more of the working peoples money, that seems to be the goverments answer to everything.Eventually the ones you are stealling it from will run out also, then what?
ray
August 3rd, 2009
10:10 am
Then like I said tc let the auto makers adjust or go broke it is not the goverments job to bail out these guys and is not there job to dictate what they do or do not build.Do you even know what the goverments job is?You seem to think their job is to run these companys and that is a huge mistake.More goverment involment just gaurentees failure.These are PRIVATE companys do you even know what the word private means?And HELLLLOOOO to you to.
null
August 3rd, 2009
10:14 am
This administration is just as idiotic as the last one. I can only hope that some debilitating illness comes along and he is forced to step down so we don’t debt ourselves to death. I can’t wait to move out of this godforsaken country.
blackbird13
August 3rd, 2009
10:20 am
“I would rather have federal money spent on this than wasted in the Iraq war” -The Professor
Me too, but I take issue with your terminology. The “Iraq War” is over. What has been going on there (and the reason for the war in the first place) is empire building, funded by borrowing from Communist China. The cars program also is funded by that borrowing. How long do people think this can continue? A poor country whose citizens save 25% percent of earnings while living in hovels funds the lifestyle of people who owe more than they are worth, save next to nothing, and yet think they are entitled to new cars and houses because they are Americans. Read “Empire of Debt” and learn that every empire in history destroys itself, and the end days are always characterized by the people in the “homeland” thinking they are entitled to wealth without production (borrowing in our case) and that their superior system (race, culture, religion, whatever is in vogue) justifies this. Is not such arrogance and folly readily apparent in our national-excuse me, imperial-attitude?
ray
August 3rd, 2009
10:20 am
Well its been fun but I have things to do.Good day to everyone and god bless.
Sam
August 3rd, 2009
10:24 am
Everyone that is complaining needs to read the fine print of the C.A.R.S program and understand that the program will pay for itself. We are so caught up in politics and thinking that government cant do anything right that we see only negatives and not the following positives:
- Car dealers benefits with increase foot traffic and demand combined with strong rules built to protect everyone. (That’s why the program has a138 pages)
- Car owners benefit with a tax credit, lower maintenance costs and better environmental behavior
- Tax payers benefit via the multiplying of dollars effect in that every dollar spent goes to multiple businesses that pay it back in taxes. (junk yards, haulers, parts dealers, scrap metal companies etc..)
Its so disappointing to read these comments because it seems like in the South all we do is complain about the Federal government (which I know is not perfect) but they are now finally spending my tax dollars right here in the USA, on Americans and not in some foreign country i.e. Iraq.
Kevin L
August 3rd, 2009
10:27 am
The overwhelming flood of ignorance in this blog is quite astounding…although typical of the general population of the US sadly.
“Yes, I know there are’nt many fuel effecient cars from the big 3 out there.” – - Are you serious? Hello…McFly…anyone in there???? Big 3 have plenty of fuel efficient options. Have you been to a dealership lately? It’s the American people who chose to ignore those options and preferred the larger vehicle. Spell check is your friend.
“2) Consuming all the resources that go into producing a new car?
If recycling is to be a part of helping the environment, this “plan” really eliminates a lot of automotive recycling by ruining the engine in the trade in.” – - The car is recycled, including metal from engine and drivetrain from what I’ve read.
“What happens when the money these dealerships have been promised does not show up?More bussiness closed and more people unemployed.Count on it.” – - Ray, you mention track record. Can you please provide us with rebate programs that were signed into law and not fulfilled by the US Govt? I’d love to hear about your findings.
“And when that money did not show up I would resale the car.” – - So Ray, let me get this straight. You obviously are just completely outraged (what I like to call fake outrage) at the ‘potential’ for abuse of the program…but have no qualms stating that given the opportunity, you’d commit fraud. Gotta love the hypocrisy here.
“There are familys out here white and black that dont have and cant afford a car new or used.” – - Ray, this is the last response I have for you. Well, not really a response, just a call to attention to the remarkable insight you have on the what the ‘white and black’ people need. Again, spell check is your friend.
“…market for better gas mileage vehicles in favor of the Hummers, Escalades, etc.” – - Pretty sure that if I owned a Hummer and/or Escalade…I’d be trying to scrape together a little more than $4500 on the sale.
Everyone here is a skeptic. Rightfully so I guess, but the extent of your skepticism and ‘fake outrage’ is nothing short of humorous. I’m for the program. Many people here have touched on the benefit to dealers. What about the suppliers? Do you realize how many part makers there are out there? Do you have any idea how big of a positive impact it is on the economy to sell a quarter million cars in one week? I’m sorry folks, the positives far outweigh the negatives (in my opinion of course). The only thing I wish they did differently is gear it more towards ‘Made in America’…ie, $4500 for US cars, $3500 for foreign…although many foreign cars are built on US soil now.
TL
August 3rd, 2009
10:33 am
Ray: Learn how to spell!
There are good and bad sides to everything.
I don’t necessarily agree with more government programs and spending money that they don’t have but it is also an investment in bettering transportation in this country.
I traded in a 10 yr. old mini-van that I would have otherwise kept on driving for as long as I could. With the incentive to purchase, I have put a more fuel efficient car on the road, provided recyclable materials, used bank financing….and yes, I can afford the payment.
It’s not all bad. As an earlier entry said, this creates forward movement in the economy. There are two sides to the coin.
Top Dogg
August 3rd, 2009
10:36 am
BigJake sounds like a disgruntled Palin supporter,loser.
Jose
August 3rd, 2009
10:49 am
I took advantage of the CARS program this past weekend. I had a ‘97 Jeep Grand Cherokee, that has a failed brake system and a transmission that was about dead. In order to start the car, I had to press on the gas while ignited the engine. I traded in for a more fuel efficient Camry that 10 mpg better then the jeep. I agree with points of view about this program. I believe all this program is doing is accelerating when people would be buying cars. You have to realize that the majority of people doing this program were probably going to buy a car in the next few months any way. So, in a few months cars sales are going to take a drastic hit since people went ahead and took advantage of the program. For the people saying that this rebate is causing under qualified to buy a new car, please also remember that this program has no effect on whether you can or cannot qualify for a loan. People that before this past week were struggling financially and had bad credit are still in that same situation and would still not be able to qualify for financing on a the remaining balance of a new car.
Katie
August 3rd, 2009
11:08 am
Um, driving is a privledge, not a right. We need to remember that. If you can’t afford a car then you can’t afford one. Plain and simple.
Also, some of these newer ‘hybrid’ high-efficiency cars don’t last more than a few years. I’d rather have an older car than a disposible one. The problem is the gas prices, not the vehicles. It’s a personal choice whether you want to drive a V-8, V-6 or what ever–it should not be government choice. The government needs to back off. Besides, we all know that ‘everything’ the government runs is run very poorly and certainly not efficiently.
jm
August 3rd, 2009
11:09 am
got the last prius in atlanta I think….
Katie
August 3rd, 2009
11:18 am
How about we just remove the cars from the road that have homemade signs on their bumpers or back windows that read “tag aplied for,” or “tagg applied for.” You know it’s fake when the person uses cardboard and can’t spell. Why don’t the police pull over and tow vehicles with this description?? Or would that be considered ‘profiling’ of some kind.
blackbird13
August 3rd, 2009
11:39 am
“It’s a personal choice whether you want to drive a V-8, V-6 or what ever–it should not be government choice. The government needs to back off. Besides, we all know that ‘everything’ the government runs is run very poorly and certainly not efficiently”.- Katie
“You know it’s fake when the person uses cardboard and can’t spell. Why don’t the police pull over and tow vehicles with this description?”-Katie
You have some muddled thinking. You think the government should “back-off” and point out how inefficiently it’s run on the one hand, but on the other hand you want the government to institute a towing project because YOU just KNOW that people who can’t spell must be breaking the law. You know what you sound like? A congresswoman.
Katie
August 3rd, 2009
11:49 am
I said the police should pull them over. We have current laws in place. We should first try following the laws in place before proceding further, would you not agree?
The more times we can prove the government to be inefficient the better.
Congresswoman, no. Wrong color for politics in Georgia, sorry. I don’t qualify.
Kevin L
August 3rd, 2009
11:55 am
Um, driving is a privledge, not a right. We need to remember that. If you can’t afford a car then you can’t afford one. Plain and simple.
Katie – Please see below for an outline of your stated ignorance:
Also, some of these newer ‘hybrid’ high-efficiency cars don’t last more than a few years. – - Please cite examples of disposable cars. You may be thinking of the batteries from earlier generations, but they last much longer with the new technology. They can be recycled and replaced.
The problem is the gas prices, not the vehicles. It’s a personal choice whether you want to drive a V-8, V-6 or what ever–it should not be government choice. – - Your first sentence here is interesting. Have you ever thought about what the effect of supply/demand is on price? You guessed it, more gas consumption (increase in demand) will have an adverse effect (increase) on gas prices. Econ 101 lesson for the day. Granted, I reckon that that this will do little to decrease global demand, but it is a start. Your second sentence here is also interesting. WHAT IS THE GOV’T FORCING YOU TO DO?? Do you still drive the same car as last week? 30 days from now will you? 365 days from now will you? I know you feel like you have a gun to your head from ‘the man’, but believe it or not, it is your choice.
BillyBo
August 3rd, 2009
12:30 pm
Hey “Tomhere”, isn’t it Obama who is spending 2 billion a year in Iraq and increasing troops in Afganastan? What a hypocrite to say Bush is spending the money? The Cash for Clunkers program will be a disaster like everything else the government undertakes.
mustafa
August 3rd, 2009
12:32 pm
Enter your comments here
blackbird13
August 3rd, 2009
12:34 pm
“I said the police should pull them over. We have current laws in place. We should first try following the laws in place before proceding further, would you not agree?
The more times we can prove the government to be inefficient the better”
Why? Because YOU know that people who can’t spell are breaking the law? No, I do not agree that is how we should “proceed” (which you misspelled, btw).
As for proving inefficiency, are we to understand you as saying that if we prove the military, for example, is inefficient enough times then we would be justified in disbanding it? Or did you have some other goal in mind?
.
different-view
August 3rd, 2009
1:04 pm
This program shows that if the PEOPLE have the money to spend (vs the government) the ecomony could recover much faster.
blackbird13
August 3rd, 2009
1:20 pm
“This program shows that if the PEOPLE have the money to spend (vs the government) the ecomony could recover much faster.”
Yes, but the people don’t have the money to spend; they are buying because they are getting “free.money,” money that is essentially borrowed from China. And the vast majority of these purchases are done with loans. The average American owes more than he is worth. How can the solution be more debt?
TC6483
August 3rd, 2009
3:22 pm
I forgot to mention, I retired from one of the “Big 3″ last year. I drive a 2005 Jeep Grand Cherokee, and I am not trading for a smaller car, so I won’t be using that $4,500 in goverment money. Yes, I do know private enterprise, yes I am a member of a Union (UAW), and I have watched our beloved Country go down hill since I came here in 1965. And all everybody knows how to do is complain and cripe.
Yanamom
August 3rd, 2009
3:41 pm
The only people participating in this program are the ones who can afford to buy a new car. So your argument about spending “YOUR” tax dollars is all wrong. Most of the people in this program are actually getting back SOME of the money THEY already paid in taxes. I would love to be able to participate and get some of MY tax money back, but since I have been unemployed for almost a year, I will not be participating. (And I thank the H1B program for my lack of work. I trained my H1B replacement, so don’t tell me I wasn’t qualified or willing to work!)
WDl
August 3rd, 2009
3:54 pm
Like any Government-designed intervention in the free market, the C4C program has / had it’s share of holes. We traded a very tired ‘96 Explorer (V-6) for a 2010 Honda Pilot (V-6, made in Alabama) with an EPA-claimed improvement of 3 mpg. We were early C4C responders, and had already negotiated a deep discount off of sticker, and then added the $3500 Obama rebate.
The goofy part is both of these vehicles have real-world mpg values of about 20 mpg. The Pilot will be slightly cleaner at the tail pipe. The $3500 is far less than the Federal income taxes I’ve paid in 2009 to date.
In this case, C4C helped us replace an SUV with another SUV, which we use to transport five-plus. (and to assuage any ill-informed, anti-SUV bandwagon-jumping, this one happens to just be a Honda minivan with a different body) The environment won’t sense any significant difference. The dealer made a bit of money. The American assembly workers earned a paycheck. Our family saved some cash on a purchase we had to make anyway. The Washington DC machine revealed more evidence of it’s inability to function with any recognizable level of efficiency. The real losers: The deserving family that could have benefitted from our still-dependable “clunker” trade.
blackbird13
August 3rd, 2009
9:51 pm
“The only people participating in this program are the ones who can afford to buy a new car.”
How do you know that? What if, like you, they are laid off and are stuck with the payment? Qualifying for a car loan and being able to afford a new car are two different things.
KZ
August 3rd, 2009
11:05 pm
This is just another way for the administration to funnel funds to the UAW and the auto companies they now own. At taxpayer expense, of course.
KevinC
August 3rd, 2009
11:44 pm
How can people claim foreign cars are “made in America?” Japanese and European cars are assembled here. The average labor cost is 20-25 hrs a car. Yet the parts and a large number of hours are made overseas.The overall % of local content is very small.
Wise up Americans. We need to define the % content like Germany and Japan. Those countries have a complex set of rules, regulations and tax breaks to lock out foreign cars. And, frankly, the smart Germans/Japanese realize that buying local promotes jobs and wealth.
Why do we note just do the same?
Who knows. Right now we pay foriegn corporations via tax breaks. I want my sh0uld work.
Overall,
Izzy
August 4th, 2009
12:47 pm
I think this is a wonderful idea. Not only are we keeping sales people employed, car dealerships selling their vehicles, it also keeps the assembly lines working. The average Joe takes advantage of this rebate, which unlike other rebates in the past, cannot be saved in your savings account. It stimulates the economy. Didn’t the economists agree that now is the time to spend? If gas prices continue to rise, then these more fuel efficient vehicles will be more cost efficient to the average tax payer. Two thumbs up! I hope they extend the additional $2 Billion. I haven’t taken advantage of the program, but I’m glad others who can afford to, have.
Fast Monday links « Dreams are the cause of My Hangover.
October 18th, 2009
11:42 am
[...] http://blogs.ajc.com/business-beat/2009/08/03/cash-for-clunkers-buy-a-new-car-this-weekend/He just tripled his MPG, helped the dealer move a car off the lot, gave his salesman a commission, paid the partial salary of the finance manager, receptionist, and service tech who put on the accessories he wanted. Not to mention his ad valorem … I don’t understand your comment “What happens when the money these dealerships have been promised does not show up?”. Don’t take possession if the deal is not guarenteed and the rebate is in hand! Link; Report this comment … [...]
‘guarenteed car finance’ on the web « annetew
October 28th, 2009
3:20 pm
[...] http://blogs.ajc.com/business-beat/2009/08/03/cash-for-clunkers-buy-a-new-car-this-weekend/He just tripled his MPG, helped the dealer move a car off the lot, gave his salesman a commission, paid the partial salary of the finance manager, receptionist, and service tech who put on the accessories he wanted. ….. I don’t understand your comment “What happens when the money these dealerships have been promised does not show up?”. Don’t take possession if the deal is not guarenteed and the rebate is in hand! Link; Report this comment … [...] … [...]
‘guarenteed car finance’ on the web « jaqlee
November 3rd, 2009
12:19 am
[...] http://blogs.ajc.com/business-beat/2009/08/03/cash-for-clunkers-buy-a-new-car-this-weekend/He just tripled his MPG, helped the dealer move a car off the lot, gave his salesman a commission, paid the partial salary of the finance manager, receptionist, and service tech who put on the accessories he wanted. ….. I don’t understand your comment “What happens when the money these dealerships have been promised does not show up?”. Don’t take possession if the deal is not guarenteed and the rebate is in hand! Link; Report this comment … [...] … [...]