Political Discussions
Clunker Program is a Clunker!
Posted by caspergirl35 • 8/13/09 • Subscribe to this Discussion [RSS] • Report This Topic
Topics: cash for clunkers, clunkers, debt, obama, politics
Cash For Clunkers program
fully loaded with debt!
The cash for clunkers program has given taxpayers a valuable lesson...
The lesson can be taken two ways.
1. How to get our county in more debt
2. Or how to put ourselves in more debt
Either way we lose.
I recently read of 5 different mistakes that were made with this incentive program and decided to share this here.
Full Story: itsjustmyownopinion.blogspot.com
User Comments
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As much as I loathe this program itself. It would have made sense if the administration had limited it to US owned car companies.
as it is now, our tax money is feeding other nations. Congratulations on not only giving money to other countries, but borrowing it in the name of taxpayers to begin with.-
they are taking their clunkers to foriegn dealerships too?
btw, what car companies are foriegn AND getting clunker-cash? -
Some of the best-selling so-called "foreign" cars are US manufactured. It won't hurt if this has a stimulative effect elsewhere too, since our economy depends on exports. Moreover, the purpose of this thing is not only stimulative, but also environmental: better fuel efficiency and lower harmful emissions is part of the goal.
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You'll find 100,000,000,000 threads here by right-wingers rejecting the premise of Keynesian economics, even though most people, even dedicated free-traders and deficit hawks, realize that the government needs to spend in times like these. Ideally, it would have even spent more than the relaively small amount that the Economic Recovery and Reinvestment Act called for, and that would have been spending, not so many wasteful tax cuts.
Unwarranted fiscal restraint is the last thing we need in times of crisis. Once we climb our way out of this recession, we will have to think about that debt. We'll also have to think about the amount of cash in circulation and the possibility of inflation, but now is not the time for that.
And really, I have a hard time taking lectures from Republicans on debt. Which party left the previous administration with a surplus? What did the Republicans leave Clinton with? Yeah, that's what I thought. The Republicans only get religion when they lose elections. -
FAQs: www.cars.gov/
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What d'ya know? Ford has done so well that it has to produce more of its Focus and Escape models.
www.businessweek.com/autos/autobeat/archives/2009/08/cash_for_clunke_9.html -
Mark you should spend some time reading more sites before just jumping to one with positive figures.
Per Ford this is causing problems for dealerships.
www.bonnersprings.com/news/2009/aug/13/cash-clunders-boosts-car-sales-creat...
Are there more problems now for the government's "cash-for-clunkers" program?
Managers with Donnell Ford in Boardman tell us they're concerned about new directives being put out by the Auto Dealers Association. They claim dealers would be required to sell in-stock models right away -- instead of waiting for federal regulators to formally approve the "clunker" deals.
Right now, Donnell has 70-vehicles that have been sold through the government's "CARS" program.
Although the government has set aside another 2-billion dollars to support the "clunkers" through Labor Day, Murphy says only two-percent of all deals nationwide have been approved so far.
www.wytv.com/content/news/local/story/More-Problems-With-Cash-For-Clunkers/...
'Google' this- YOUTUBE CASH FOR CLUNKERS SCAM KICKBACKS BOGUS TRADES
IF there are dealerships having their own employees buying old cars & trading them in, & then purchasing a new car, & then selling that new car back to the dealer so the dealer can DEFRAUD the government out of $3,500 or $4,500 per transaction, then it should be investigated, wouldn't you agree? REMEMBER, most Car Dealers know all the 'TRICKS' of the 'trade', don't they?
There is a lot more to this than just sales...-
Selling lots more cars than expected and dealing with the clunkers to be junked creates a few headaches? Some people will never be happy.
Crooks? If so, they will be prosecuted.
*shrug*
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Your statement:
- Unwarranted fiscal restraint is the last thing we need in times of crisis. Once we climb our way out of this recession, we will have to think about that debt. We'll also have to think about the amount of cash in circulation and the possibility of inflation, but now is not the time for that.
According to this we are to worry after we are already drowning. Most people plan for the future and don't just dive in and compound a problem. If you are in debt you don't go get more credit cards and jack them up, or buy a new house that you can't afford etc.-
You cannot use personal finance as a metaphor for understanding the US economy in a recession that was very close to a slipping into a depression. The common sense school of economics is woefully inadequate for an economy this size, let alone one in these circumstances, though I have seen a few others here who never tire of trying to apply it.
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So the government gets into debt, we the tax payers must pay to pull us out (impossible at this junction). Now all the incentives are gone, people are no longer spending, the government is further in debt and then what? The biggest recession ever..so what make more money..how about a new incentive...oops people are out of money, they don't have jobs and most are homeless living in their new cash for clunker car...
You figure that works?-
Incentives gone?
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I just helped a friend buy a car today. Interesting experience.
Now, his wasn't a "clunker" tradein, but it was very informative to talk to the Car dealer.
1. The Salesmen at the lot are Pi-ed off becuase they aren't getting paid, So far not a single one of their 300 cars in the lot have been reimbursed by the dealer. They are unable to meet demand on the vehicles because of stocks being low all over the country. High demand over short time is causing delivery problems.
2. The dealers are forced to disable / Destroy the car in 72 hours. But it isn't at all uncommon in this day and age for the finance company to ultimately reject a client that can't provide the final proof that the company accepts. And it isn't like the seller can tell him to come get his now non-functional car back. This is going to be a string of lawsuits waiting to happen.
3. They are selling cars. (nissans, manufactured in Mexico) like hotcakes, they are unable to meet demand. However, they are also seeing an almost complete stall in the non CFC market. I thought he was going to choke on his coffe when My friend said he didn't have a trade in.
This stall is because they are selling hard during this drive, which means that they are unwilling to offer any real deals. Cars are selling for MSRP or they aren't taking the deals. I.e the people buying these cars are paying more for the car than they normally would. And since it's mainly financed, we are seeing an increased debt to asset ratio that is hitting the people previously driving clunkers, i.e. the ones least able to roll with the punches should something go bad.
4. The Market for "clunkers" has dried up completely, those that want good cars in the low price range are actually seeing a price hike on these cars. A 1500 car is now selling for close to 2000
5. The dealers support staff are working on average 2 hours PER TRADE extra to make up for the complexity of the government program handling.
all in all, the dealer said that it's nice making sales, but no one has gotten their commision checks yet, and they are spending an aweul lot of time to manage a program that is showing more and more weaknesses as time progresses.
Again, i'm no fan, and this particular salesman wasn't either. -
Sure what is next...turn in your stove and get 2000? How about turn in your old lawnmower and get 1500? So we continue to go further in debt? All the incentives in the world will eventually not work as people are laid off and have no money to spend. If you were to tell me that if I purchased a new home at 70,000 with monthly payments of 650 and I will get $8000.00 as a tax break...great but who is going to make the $650.00 a month payment when the 8000.00 runs out? Now based on this for the next 30 years I either struggle or I become homeless and since I took the 8000.00 the government is further in debt which means either my taxes or cost of groceries or something is going to raise to cover my incentive of $8000.00 which I too will have to pay for.
My thoughts...some incentive I just got screwed all the way around in the long run.
Thus my point with this cash for cars...big bang and then fizzle. Who will pay for this "after we have pulled ourselves out of a very close recession". Since there will be no money for people to spend we will end up right back where we tried to flee from, only now we will be further in debt.-
Hey it's great. We scoop one bucket out of the shallow end of the pool, and pour it in the deep end, then we pretend we are injecting funds.
Or we scoop from the neighbors pool, and promise him we'll scoop back a bucket and a half later, and then we pretend we have added anything.
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