Like a lot of other people, I’ve been surprised by the popularity of the cash-for-clunkers program. While it didn’t strike me as a complete waste of money, I wasn’t so sure it was going to do much to stimulate auto sales, either. Since it still takes quite a bit of money to buy a new car, even with a $3000 or $4000 rebate, I wasn’t so sure that a lot of recession-weary consumers would rush out to take advantage of the program.
But they have. Automobile dealerships have reported that they moved a lot of inventory. The popularity of the program prompted the Senate to put more money in. Even though cash-for-clunkers hasn’t won many votes from Republicans, it is wildly popular with dealers and car salesman, who probably represent the consummate American capitalists.
Here’s the biggest surprise, though: While the White House likes to report the number of people who have traded in gas guzzlers for high-mileage Toyotas and Hondas, quite a few consumers have traded in high-mileage vehicles for just-slightly-lower-mileage Hummers and pick-up trucks.
Why? Everything I’ve read suggests that gas prices will skyrocket again once the recession ends and demand picks up. The Chinese, the Indians, the Germans and, yes, the Americans will start driving and producing again, and, the market being what it is, the price at the pump will soar.
Have any of you participated in cash-for-clunkers? What did you buy? Why?
31 comments Add your comment
Jack
August 13th, 2009
1:03 pm
Nope, didn’t buy cash-for-cluker car. But I am concerned about the new program coming out that allows cash-for-grandpa.
Question
August 13th, 2009
1:28 pm
Sheila Jackson Lee, Democrat congresswoman from Houston, talks on her cell phone while a constituent is making a statement during her town hall. Debbie Stabenow, Democrat Senator from Michigan says that “climate change is very real” because she can “feel it when I’m flying. The storms are more volatile. We are paying the price in more hurricanes and tornadoes.”
And these folks are our “leaders” making policy decisions. Makes one wonder about the intellect of their voters…
Bhorsoft
August 13th, 2009
1:34 pm
Thought really hard about it as I could get the $4500 and improve my gas mileage by at least 7 MPG. The $4500 would be over twice what I could get selling it or trading it in using a conventional trade-in. However, I like not having a car payment, my “clunker” has less than 90K miles on it and it is 10 years old – so it is just fine except for some minor maintenance and that it is ugly (from unrepaired hail damage dents). I also didn’t want to triple my ad valorem taxes on a vehicle for the next few years. Bottom line was that I really wasn’t going to save that much in the short term and I’m counting on vehicles getting a lot better gas mileage by the time I’m really ready for a new vehicle – and maybe ad valorem will be “fixed”, too.
Edward
August 13th, 2009
1:40 pm
I see the reich-wing propagandists are out early today.
On topic, I don’t see how the “cash-for-clunkers” program does anything long-term beneficial, either for the environment or the economy. It is a “feel good” program only. The best thing congress could do is slap a huge tax on gas-guzzlers so that Hummer and V-10 behemoth have far less of an incentive. The current gas-guzzler tax is a joke, especially with the tax loophole that still allows a huge tax deduction for buying a monster SUV or truck for some people.
Concerned consumer
August 13th, 2009
1:41 pm
If I was in the buying market I would have purchased the new clean diesal Jetta, great gas mileage and peppy.
Concerned consumer
August 13th, 2009
1:43 pm
I have never understood who EVER buys a Hummer? Big car, Little …….is what I think
Nick
August 13th, 2009
2:17 pm
Customers are not capable of trading in “high-mileage vehicles for just-slightly-lower-mileage Hummers and pick-up trucks.” Under the guidelines of the program, depending the new vehicle must get at least 2 mpg better than the vehicle being traded in.
And relative to the question about who buy’s Hummer, they’re typically highly educated with a high household income. They recognize that Hummer models get the same fuel economy as other trucks and SUVs on the road.
reservoirDAWG
August 13th, 2009
2:28 pm
I drive a new car and it is not a clunker. By the way Cynthia, you suck.
jconservative
August 13th, 2009
2:48 pm
Cash for clunkers – my info is that both Republican & Democratic congressmen from districts with auto factories came up with this idea.
White House did not like & sent Emanuel to kill the bill. Emanuel delayed & by the time he got to the House there were a bunch of co-signers. The bill was for $4 billion. Emanuel talked them into just $1 billion thinking that no one would be buying autos anyway.
It’s easy to be wrong.
ctucker
August 13th, 2009
2:49 pm
reservoirDAWG — I’m not the sensitive, shrinking violet type. I couldn’t have survived the opinion-writing dodge this long if I were. I celebrate the First Amendment. But I do hope you have more to contribute than vulgarity. Your momma would be disappointed in you, I’ll sure.
Mac
August 13th, 2009
3:31 pm
I’ve got a guzzler, but have to have it to haul with. I’d love to have a high-mileage vehicle for other driving, though. But, right now, I cannot afford it … because I need to keep the guzzler.
Mac
August 13th, 2009
3:32 pm
high mpg I should have said.
Florida Fan
August 13th, 2009
3:52 pm
I’m disappointed that the program even allows for pick-up trucks and hummers to be purchased. If that’s the case, the program is a joke. Trading in an old car for one that gets 2 mpg less (based on the auto companies mpg data, which is suspect to begin with) is a teeny, tiny band aid on co2 emissions. And kudos to Cynthia for her reply to reservoirDAWG. I wouldn’t have wasted my time.
Closed Comments
August 13th, 2009
5:02 pm
ctucker – If you’re “not the sensitive, shrinking violet type”, why are most of your comment sections closed?
Pat
August 13th, 2009
5:31 pm
Cynthia, don’t take “ReservoirDAWG” personally – or seriously.
He hates anyone slightly left of Mussolini. And his charming manners are always on display.
Ask Jay, his favorite target.
Jeff
August 13th, 2009
7:09 pm
I would like to see how a small car would tow a 4000 lb ski boat, with 2 kids, and large dog to the lake each weekend. An intelligent buyer would do research and understand that any of the Hummer line of vehicles (H2, H3, H3T) get very comparable mpg as vehicles in their class. There are reasons some people can afford to own a Hummer. There are reasons people need govt to help hold their hand too.
Atlanta Native
August 13th, 2009
8:16 pm
Not me. I have believed in safe, high mpg cars for years.
Carter is a Fool
August 13th, 2009
9:13 pm
Speaking of Cash for Clunkers, how much did we get by trading you to Washington? Wait, you still writing this drivel. Drat.
Fang1944
August 13th, 2009
9:29 pm
I’m already driving a hybrid when I’m not on my motorcycle.
MikeB
August 13th, 2009
10:42 pm
Feel good is right………What about all the independent small repair shops that serviced those clunkers? Those small businesses have been hung out to dry by this program,
Once again the Obama Adminstration shows they are not the friend of small businesses, they campaigned to be before the election.
The problem with Idealogues like Obama, is that what ever they accomplish will never be enough. They will continue until you live the life they want you to live, while they live the lives everyone dreams of. Essentially a different set of rules for them then what they legislate for you.
Not the “change” most envisioned in the voting booth. Though many dare not admit this truth.
Greg in Virginia Highlands
August 14th, 2009
2:47 am
Those that buy into this program are fools. Do the math- Trade a no car note, $30 a month insurance and a $20 a year tag car for a $200+ car note, $80 a month insurance and $300 a year tag. P. T. Barnum said it best- “A fool and his money are soon parted”.
Craig Spinks /Augusta
August 14th, 2009
2:48 am
Did the feds reinstitute the tax credit for Hummer buyers?
Russ
August 14th, 2009
6:41 am
OK, look at the long term ramifications of this program. If the clunkers that were traded in were all driveable, tagged, and insured for the last year as required that means they all passed emissions test. Tell me how long will it be before the cars that were bought under this program will begin to help reduce overall emissions and polution. The engine produce large amounts of smoke before they finally die. Then the crushers run on diesel fuel and produce lots of black smoke while doing the crushing. Then the trucks hauling the dead carcuses to the recycling location use more fuel. Then there’s more fuel consumed in shipping the scrap to China or somewhere else. Then there is more energy used in manufacturing new cars that replace the clunkers, and it goes on and on. This administration that is in place never seems to think of the long term effects of the programs that they shove on the American people. To scrap thousands of perfectly good cars is just ludicris.
Bicycles
August 14th, 2009
9:46 am
I think anyone using this program should trade their fuel efficient vehicle in for a bicycle and a bus pass. And I get to keep my $4,500 worth of taxes!
Frank Falcone
August 14th, 2009
11:06 am
1994 4runner 3.0 V6 for a 2009 Hummer H3 with the Adventure package. Hummer gets 3-5 MPG better than the Toyota and kills my beloved ‘yota off road.
No joke, the ‘yota got solid 15 MPG pretty much all the time. I little less around town, a little more on the freeway if you kept it at 65. The darn Hummer gets 20 MPG at 65 MPH, tows more, and can tackle much harder trains. I love to wheel it.
Jeff
August 14th, 2009
1:50 pm
Yes, my wife’s H3 is very consistant with getting between 19-20 mpg. Even hit 19 mpg packed full with cargo carrier on top. Safe to say, I’ve been pretty impressed with it towing, and in the snow. Plus if you do some cost of ownership research, you will find it gets a very low cost of ownership rating of “excellent”. We saved tons of money buying the H3 when gas was $4. Again, I did research, and ignored the media hype.
Thyra
August 17th, 2009
1:44 pm
When I bought my Jetta Wagon in 2002, the salesman couldn’t understand why I wanted to save a few MPG’s by getting a standard transmission. I said, “We have an oil man in the White House, gas prices are going to go up.”
Marc
August 18th, 2009
5:26 pm
I have a 2005 hummer H2 SUT, a 1997 Chevrolet Silverado 1/2 ton regular cab shortbox 4×4, a 1998 Chevrolet Tahoe 2dr 4×4 & a 1991 Buick Reatta. The 97 Silverado gets 16-18mpg, the Tahoe 14-17, Reatta 29-31 and the Hummer after my taking all the junk off the outside and doing some modifications to the air intake and exhaust gets 14-17mpg. In other words, the Hummer gets as good gas mileage as does my other two trucks. Nobody has ever asked me what gas mileage my trucks get, but I cannot get into and back out of a gas station without someone asking about the Hummer gas mileage. When I told a Ford Excursion owner what my Hummer got for mileage he laughed and said ” I only wish my Excursion got that kind of mileage, I get around 10-12mpg”. I only use the Hummer when we are all going somewhere so I always have a load of four people on board. I don’t feel so bad hauling four people around getting an avarage of 15mpg. Its like one person driving a vehicle by themselves and getting 60mpg!!
Marc
August 18th, 2009
5:34 pm
And to Concerned consumer who said:
“I have never understood who EVER buys a Hummer? Big car, Little …….is what I think” Ask my partner about that one, I am quite sure she would disagree with you!! By the way, I own 16 vehicles, worked hard to get ever one of them. I commonly drive a almost 20 year old collector Buick Reatta that gets an average of 30+ mpg. I use the Hummer when we all go somewhere. At 15mpg hauling 4 people I am using less resources to move four people than the guy driving by himself getting 25mpg. And I can haul pretty much anything within reason behind me. I doubt your “clean diesel Jetta, great gas mileage and peppy” vehicle will pull much more than its shadow without that peppy mileage going out the window!
MikeB
August 19th, 2009
4:03 pm
What happens when a % of the cash for clunkers participants can’t make their new car notes/insurance/taxes/fuel bills?
Are we going to have a melt down like what we had in the real estate market? Just another program to motivate Joe avg. citizen to go into debt.
Marty
August 25th, 2009
11:04 am
We did not sell (1) Hummer during the program are guidelines were that strict. Don’t believe everything you read.