Cash for Clunkers Law

[autoguy]

What do you guys think about this Cash for clunkers Law?

 

Some articles to read about it:

 

http://www.google.com/hostednews/afp/artic...SbAMcv4EqdBQjiw

 

http://www.carnewsreport.org/

 

In a nutshell, if you are not familiar with this:

 

Under the House bill, car owners could get a voucher worth $3,500 if they traded in a vehicle getting 18 miles per gallon or less for one getting at least 22 miles per gallon. The value of the voucher would grow to $4,500 if the mileage of the new car is 10 mpg higher than the old vehicle. The miles per gallon figures are listed on the window sticker. Owners of sport utility vehicles, pickup trucks or minivans that get 18 mpg or less could receive a voucher for $3,500 if their new truck or SUV is at least 2 mpg higher than their old vehicle. The voucher would increase to $4,500 if the mileage of the new truck or SUV is at least 5 mpg higher than the older vehicle. Consumers could also receive vouchers for leased vehicles.

[Tom Ham AutoMN.info]

What do you guys think about this Cash for clunkers Law?

 

Some articles to read about it:

 

http://www.google.com/hostednews/afp/artic...SbAMcv4EqdBQjiw

 

http://www.carnewsreport.org/

 

In a nutshell, if you are not familiar with this:

 

Under the House bill, car owners could get a voucher worth $3,500 if they traded in a vehicle getting 18 miles per gallon or less for one getting at least 22 miles per gallon. The value of the voucher would grow to $4,500 if the mileage of the new car is 10 mpg higher than the old vehicle. The miles per gallon figures are listed on the window sticker. Owners of sport utility vehicles, pickup trucks or minivans that get 18 mpg or less could receive a voucher for $3,500 if their new truck or SUV is at least 2 mpg higher than their old vehicle. The voucher would increase to $4,500 if the mileage of the new truck or SUV is at least 5 mpg higher than the older vehicle. Consumers could also receive vouchers for leased vehicles.

 

What a great way to take money ($1B) from taxpayers, including shop owners and techs, to give to consumers to purchase new cars so they visit us less often.

 

Basically, one of the dumber ideas (there are so many lately) they have come up with in Washington.

[xrac]

What a great way to take money ($1B) from taxpayers, including shop owners and techs, to give to consumers to purchase new cars so they visit us less often.

 

Basically, one of the dumber ideas (there are so many lately) they have come up with in Washington.

 

It also encourages debt which is some of the reason we are where we are at.

[Dan Reichow]

It will suck the life out of several business , Resale and rebuilders , cores , restoration shops , Again a law for the big boy's

[autoguy]

It will suck the life out of several business , Resale and rebuilders , cores , restoration shops , Again a law for the big boy's

 

Well siad, a law for the big boys. We need more legislation/support for small businesses. It's bullshit!!!

[Jeff]

I felt it would have been better as a "Cash to Fix Your Clunker" program. In my area unemployment is over 18% and many people have had homes forclosed on,ergo no credit. It would have been a boom for me to have my customers get a "rebate" to fix their current vehicle. But with the auto makers bail-out the goverment had to figure a way to sell cars. After all they are part owners in GM and Chrysler

[Dan Reichow]

I felt it would have been better as a "Cash to Fix Your Clunker" program. In my area unemployment is over 18% and many people have had homes forclosed on,ergo no credit. It would have been a boom for me to have my customers get a "rebate" to fix their current vehicle. But with the auto makers bail-out the goverment had to figure a way to sell cars. After all they are part owners in GM and Chrysler

 

 

ASA -- Automotive Service Association tryed working on that and fell on deaf ears , From my knowledge Texas has a $1,500 dollar credit to improve your vehicle.

 

Was bad enough 1- billion now 3- Billion, Do you really think most car dealers will re fill thier lots with inventory ? NOT!

The other issue if 60% is imports purchased from this program how many nieghbor's will go back to work.

All this bill is hype that will not fix the economy it just switch's support to a different segment and will cause severe harm to the true small business economy.

Watch Nov / Dec / Jan when no car's our sold and made where this economy sinks.

[Joe Marconi]

Below is an article from Dealer Magazine from the AAIA; Please read!

 

 

August 10, 2009

AAIA: 'Cash for clunkers' peanuts next to routine maintenance

Routine vehicle maintenance for an entire year costs a consumer less than a single monthly new car payment and would be significantly more successful in reducing gasoline use and pollution than the "Cash for Clunkers" program, according to the Automotive Aftermarket Industry Association (AAIA). Vehicle maintenance would save consumers $30 billion in gasoline a year vs. spending $3 billion in taxpayer dollars to buy new cars.

 

While the "Cash for Clunkers" program is estimated to save 72 million gallons of gasoline each year, simple vehicle maintenance would save more than 12 billion gallons of gasoline a year (equivalent to all of the gasoline used in Illinois, Michigan and Connecticut in one year), AAIA said. Additionally, vehicle maintenance does not require a dime of taxpayer money and doesn't require destroying perfectly good used vehicles that could be sold or donated to people who cannot afford a new car, reports AAIA.

 

"Understandably the 'Cash for Clunkers' program is wildly popular among new car dealers, car makers and those consumers who have the ability to buy a new vehicle. However, the majority of Americans cannot afford a new car payment today, but they probably can afford to trade up to a newer used vehicle or make their current vehicle more fuel-efficient," said Kathleen Schmatz, AAIA president and CEO.

 

"Doesn't it make more sense to give a tax credit or other incentive to the majority of Americans to improve the fuel efficiency, safety and dependability of their current vehicle, rather than taking their tax dollars to help a small minority of consumers and pump up new car dealer profits?" said Schmatz.

 

AAIA opposes the "Cash for Clunkers" program for the following reasons:

 

-- The program destroys many vehicles that are not even close to being

defined as "clunkers" with years of remaining life and use.

-- Destroyed vehicles are removed from the market forever, depriving

consumers who seek to purchase a used vehicle or charities in need of

donated vehicles.

-- It hurts the aftermarket companies that manufacture, distribute, sell

and install vehicle parts on used vehicles, and those who

rebuild/remanufacture vehicle parts.

-- Resources and energy use is multiplied when a vehicle is destroyed and

a new one is built to replace it.

-- The majority of vehicles being traded in are domestic, and the

majority of new vehicles being sold are foreign.

-- The program entices consumers to purchase a new car that they might

not be able to afford and certainly to go further in debt, reminiscent

to the sub-prime home mortgage debacle.

 

-- The program is regressive since only those at higher income levels who

can afford to purchase a new car will qualify for the $4,500 voucher,

while destroying used cars that could be purchased by lower income

families, most in need of assistance in obtaining transportation.

 

 

 

Consumers interested in learning exactly how vehicle maintenance will save money should visit the Car Care Council Web site at www.carcare.org.

[xrac]

Below is an article from Dealer Magazine from the AAIA; Please read!

 

 

August 10, 2009

AAIA: 'Cash for clunkers' peanuts next to routine maintenance

Routine vehicle maintenance for an entire year costs a consumer less than a single monthly new car payment and would be significantly more successful in reducing gasoline use and pollution than the "Cash for Clunkers" program, according to the Automotive Aftermarket Industry Association (AAIA). Vehicle maintenance would save consumers $30 billion in gasoline a year vs. spending $3 billion in taxpayer dollars to buy new cars.

 

While the "Cash for Clunkers" program is estimated to save 72 million gallons of gasoline each year, simple vehicle maintenance would save more than 12 billion gallons of gasoline a year (equivalent to all of the gasoline used in Illinois, Michigan and Connecticut in one year), AAIA said. Additionally, vehicle maintenance does not require a dime of taxpayer money and doesn't require destroying perfectly good used vehicles that could be sold or donated to people who cannot afford a new car, reports AAIA.

 

"Understandably the 'Cash for Clunkers' program is wildly popular among new car dealers, car makers and those consumers who have the ability to buy a new vehicle. However, the majority of Americans cannot afford a new car payment today, but they probably can afford to trade up to a newer used vehicle or make their current vehicle more fuel-efficient," said Kathleen Schmatz, AAIA president and CEO.

 

"Doesn't it make more sense to give a tax credit or other incentive to the majority of Americans to improve the fuel efficiency, safety and dependability of their current vehicle, rather than taking their tax dollars to help a small minority of consumers and pump up new car dealer profits?" said Schmatz.

 

AAIA opposes the "Cash for Clunkers" program for the following reasons:

 

-- The program destroys many vehicles that are not even close to being

defined as "clunkers" with years of remaining life and use.

-- Destroyed vehicles are removed from the market forever, depriving

consumers who seek to purchase a used vehicle or charities in need of

donated vehicles.

-- It hurts the aftermarket companies that manufacture, distribute, sell

and install vehicle parts on used vehicles, and those who

rebuild/remanufacture vehicle parts.

-- Resources and energy use is multiplied when a vehicle is destroyed and

a new one is built to replace it.

-- The majority of vehicles being traded in are domestic, and the

majority of new vehicles being sold are foreign.

-- The program entices consumers to purchase a new car that they might

not be able to afford and certainly to go further in debt, reminiscent

to the sub-prime home mortgage debacle.

 

-- The program is regressive since only those at higher income levels who

can afford to purchase a new car will qualify for the $4,500 voucher,

while destroying used cars that could be purchased by lower income

families, most in need of assistance in obtaining transportation.

 

 

 

Consumers interested in learning exactly how vehicle maintenance will save money should visit the Car Care Council Web site at www.carcare.org.

 

http://online.wsj.com/article/SB1000142405...1645819464.html

[Joe Marconi]

Great article. I did see this article and read it too.

 

The sad news is that the large majority of people do not fully understand the politics behind what is driving policy in this country. Although, I think the tide is starting to turn the other way. Look at Obama's approval rating. The gallop poll as of yesterday was down to 50%.

 

I will do my best to educate as many as I can.

 

Let's keep up the fight!

[Alex]

Great article. I did see this article and read it too.

 

The sad news is that the large majority of people do not fully understand the politics behind what is driving policy in this country. Although, I think the tide is starting to turn the other way. Look at Obama's approval rating. The gallop poll as of yesterday was down to 50%.

 

I will do my best to educate as many as I can.

 

Let's keep up the fight!

 

Here is an interesting article now that it is over... http://www.examiner.com/x-12837-US-Headlin...over-whats-next

[Joe Marconi]

Great article. Here's another fact that I just read about. The “Buyer's Remorse” rate for those who bought vehicles under the Clunker Program is 17% and getting higher!

 

The average buyers remorse rate of new car buyers is around 2 to 3%.

 

Simply put, many people bought cars because they were sucked in by the incentive. Many now are stuck with a car payment they do not want or cannot afford.

[xrac]

Great article. Here's another fact that I just read about. The “Buyer's Remorse” rate for those who bought vehicles under the Clunker Program is 17% and getting higher!

 

The average buyers remorse rate of new car buyers is around 2 to 3%.

 

Simply put, many people bought cars because they were sucked in by the incentive. Many now are stuck with a car payment they do not want or cannot afford.

 

Locally it was just announced that the Whirpool plant is closing (after 52 years) and the production is going to Mexico. 1,100 will lose their jobs and others who work in affliated businesses. How many of them were in the cash for clunkers program and how many will NOT BE ABLE to afford the car payment once they lose their job??? Was it right for our government to give incentives for people to take on on extra debt in the midst of the worst recesssion we had since the great depression????

[Jeff]

Here is the real kick in the a**. In todays Sunday paper the most traded clunkers were all American made. Mostley Ford trucks and SUVs. The most purchased top 10 only includes one American vehicle, Ford/Mazda Escape. The rest were all Asian with Honda at the top. That really helped our workers and the steel mills in this country!!!!!! When Is America gonna wake up?!?!?!?!?!

Edited August 30, 2009 by Jeff

[Joe Marconi]

I agree, great points. when is America going to wake up?

 

Like I said before; More Junk Politics!

[xrac]

I agree, great points. when is America going to wake up?

 

Like I said before; More Junk Politics!

 

Cash for Clunkers is another of those dumb ideas that only a politician out fo touch with the people down in the trenches can come up with.

[Joe Marconi]

I think it goes beyond that. Politcal pressure from large corporations (like the car makers) sways political opinion and create consumer policy.

 

Politcians then dictate policy and the masses of people follow like sheap.

[xrac]

Cash for Clunkers is another of those dumb ideas that only a politician out fo touch with the people down in the trenches can come up with.

 

Not only was Cash for Clunkers a bad idea and ineffective but the Tire Tariff that this administration signed is also another very bad idea in my humble opinion:

 

http://tirereview.com/Article/66890/fixing...re_wronged.aspx

[autoguy]

Not only was Cash for Clunkers a bad idea and ineffective but the Tire Tariff that this administration signed is also another very bad idea in my humble opinion:

 

http://tirereview.com/Article/66890/fixing...re_wronged.aspx

 

I did hear from a friend that works at an STS Tire, that he is able to sell a more name brand tire since the chinese tire prices went up.

[Joe Marconi]

I think this will hurt sales for those people looking for cheap tires (which is a large segment of the economy). The tire industry will adjust. Time will tell if it will be for the better.

[xrac]

Here is some interesting news U.S. manufactured cars are shut out of Japan's clunker plan. Now is that fair or smart or what?

 

Japanese automakers sold 319,342 vehicles under the U.S. cash-for-clunkers program this year, almost half of the roughly 677,000 vehicles purchased. About 115,000 of those Japanese vehicles were imported.

 

Now Japan is running its own stimulus plan designed, in the midst of a marketwide slump, to boost sales of fuel-efficient cars. And the rules shut out all U.S.-brand vehicles.

 

http://www.autonews.com/apps/pbcs.dll/arti...312219960/1117#

[Joe Marconi]

When is this country going to learn that the US cannot be the world's savior. We give and we give and do not get the same respect or consideration from other countries.

 

The world uses us, at the tax payer expense.

 

This deal stinks!

[xrac]

I thought this information might be of interest:

 

2009 LISTS OF 10

What folks bought with cash from clunkers

 

Automotive News | December 28, 2009 - 12:01 am EST

 

Here are the top 10 vehicles purchased under the federal cash-for-clunkers program (units sold).

 

1. Toyota Corolla (29,488)

 

2. Honda Civic (28,456)

 

3. Toyota Camry (27,137)

 

4. Ford Focus (22,388)

 

5. Ford Escape (21,894)

 

6. Honda CR-V (20,106)

 

7. Hyundai Elantra (19,797)

 

8. Chevy Silverado (16,330)

 

9. Nissan Versa (16,300)

 

10. Ford F-150 (16,263)

 

Source: NHTSA

[Joe Marconi]

So, let me understand: this deal was to get old clunkers off the road, get newer "greener" cars on the road and help AMERICAN car companies?????

 

What this does not show were all the Hummers and other large SUV's sold.

 

Where are we headed in this country?

[xrac]

So, let me understand: this deal was to get old clunkers off the road, get newer "greener" cars on the road and help AMERICAN car companies?????

 

What this does not show were all the Hummers and other large SUV's sold.

 

Where are we headed in this country?

 

How are Ford F-150s and Chevrolet Silverados "greener" vehciles?

[Joe Marconi]

You are right; it's another sham perpetrated on the American people.

 

He’s a good story; A customer of mine went into a Jeep dealer during the clunker program and made a deal to buy a new Jeep Grand Cherokee. The dealer made him a nice deal, thousands of dollars off, and he almost signed the papers. My customer then told him he had a 10 year old Jeep at home he would like to trade in under the clunker program and get the $4500.

 

The dealer turned around and told him he would have to charge FULL LIST PRICE for the new Jeep! This is after the salesman made him a deal. My customer walked out disgusted, brought us the old Jeep and we put tires, brakes and performed lots of service work on it. He ended up giving the old Jeep to his son in college.

[xrac]

Cash For Clunkers Leases a Bad Idea One Year Later

 

http://markets.hpcwire.com/taborcomm.hpcwire/?GUID=14132401&Page=MediaViewer&ChannelID=3198

[Joe Marconi]

Cash For Clunkers Leases a Bad Idea One Year Later

 

http://markets.hpcwire.com/taborcomm.hpcwire/?GUID=14132401&Page=MediaViewer&ChannelID=3198

 

Now that is interesting...Cash for Clunkers turns out to as bad as sub prime lending...giving many people an incentive to but something who really should not have gotton a loan to begin with...another bad move from this administration.

[xrac]

[Joe Marconi]

 

Outstanding! This is what the public needs to understand about what is going on in our government.