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Cash for Clunkers - Was It Worth It???

Discussion in 'Off Topic Threads' started by bigdogtx, Aug 27, 2009.

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  1. bigdogtx

    bigdogtx Well-Known Member

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    Take a look through the hype at what is now ahead....

    Next: Why Government Rationing Ain’t a Good Deal
    Previous: An Alternative Strategy for Afghanistan
    Cash for Clunkers: Dumbest Program Ever?
    Posted by Chris Edwards

    As the Cash for Clunkers program begins to wind down, I nominate it as the dumbest government program ever. Here is what the program will have accomplished:

    •A few billion dollars worth of wealth was destroyed. About 750,000 cars, many of which could have provided consumer value for many years, were thrown in the trash. Suppose each clunker was worth $3,000 at a guess, that would mean that the government destroyed $2.25 billion of value.


    •Low-income families, who tend to buy used cars, were harmed because the clunkers program will push up used car prices.


    •Taxpayers were ripped off $3 billion. The government took my money to give to people who will buy new cars that are much nicer than mine!


    •The federal bureaucracy has added 1,100 people to handle all the clunker administration. Again, taxpayers are the losers.


    •The environment was not helped. See here and here.


    •The auto industry received a short-term “sugar high” at the expense of lower future sales when the program is over. The program apparently boosted sales by about 750,000 cars this year, but that probably means that sales over the next few years will be about 750,000 lower. The program probably further damaged the longer-term prospects of auto dealers and automakers by diverting their attention from market fundamentals in the scramble for federal cash.


    Farm subsidies are unjust. Trade restrictions are counter-productive. Energy regulations have done great damage. Housing policies helped cause the financial crisis. But for pure dumbness, Cash for Clunkers takes the cake.
     
  2. bigdogtx

    bigdogtx Well-Known Member

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    Here is another....Government programs don't work....

    Cash for Clunkers success pales next to its hype
    Posted by: David Welch on August 26

    The government’s Cash for Clunkers program is over and still the spiff is getting more post-event coverage than any Super Bowl I can remember. The Transportation Department, not surprisingly, has labeled the program a great success. Some analysts have been far less effusive. They say the program was effective in selling cars, but the boost won’t last long enough to really help the car industry for very long. Edmunds.com also shows different data than the government, claiming that pickup trucks sold better than the Transportation Department is letting on.

    While the program did its job, its real contribution has been less than the hype. Cash for clunkers did spur sales. It sold 690,000 cars and many were compacts like the Ford Focus and Honda Civic. So it did accomplish the mission of scrapping some old iron and selling some more efficient cars. That said, the boost will amount to less than a 3% increase for the year. That’s hardly the windfall that Germany achieved from a similar program, which pushed sales up an average of 30% a month since March. There may also be a hangover in car sales in the U.S. Edmunds says that purchase intent is now down 11% from June, meaning that fewer people are looking at new cars. So sales could slump in the coming months. In fact, J.D. Power says that more than 70% of sales may have happened later this year even if the government hadn’t spent $3 billion on the clunker program. One other point: Toyota was the biggest beneficiary, getting 19.4% of sales, with General Motors getting 17.6% and Ford getting 14.4% of sales from the program.

    Then there’s a minor tussle over the most popular cars. The government’s figures say that the top 10 seller were all compact cars and small suvs. Without all the data in, Edmunds says the Ford F-150 pickup and Chevy Silverado were also in the top 10. We may get a final call on that when all the data is in.

    The bottom line: The program did its job, but with just $3 billion in funding its mission was always going to be limited. Cash for clunkers came and went in about two months. But now automakers must sell in an economy whose fundamentals are still weak. It will be a tough road for some time to come.
     
  3. Paladin

    Paladin Well-Known Member

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    From Tim Pawlenty;


    "I don't think Cash for Clunkers should be a label for that particular program, I think it should be a label for the whole entire administration," he said. He later said, "Giving the Democrats control and responsibility for our money is like letting Michael Vick watch your dog for the weekend."
     
  4. Citori Shooter

    Citori Shooter TS Member

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    My $.02,I have the concern that all these people focusing on the free government(taxpayer)cash will have their new vehicle repo'd in the near future and be left with no car and bad credit.Face it,most of them probably were driving a clunker for a reason.They will need to pay for full coverage insurance now which will also add to the new car cost that they are not used to having to pay for.Some of the clunkers I've seen sitting at the dealers lots looked nicer than some of the stuff I've driven over the years and were probably worth more than the $4500 to scrap them.The progam will have negative effects on the economy and will worsen it further.Obama would be better off to do nothing and let the economy recover on it's own or if he must to something,lower taxes across the board.
     
  5. cubancigar2000

    cubancigar2000 Well-Known Member

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    we the people lost, the dealers made out because they charged more for the cars so the public actually paid for the program and the extra cost on the cars
     
  6. BT-100dc

    BT-100dc Active Member

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    No. We'll really know how bad it was when we have to pay the $3,000,000,000. Sure it peaked sells but did it just move up sales that would have occurred in the upcoming months. The taxpayer, again, got the shaft. BT-100dc
     
  7. timberfaller

    timberfaller Well-Known Member

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    This is what I heard out of the mouth of a woman at a checkout counter:

    We have 4 cars at home and one of them we didn't drive very much(mini van). We got the $4500 cash from the government and the dealer doubled it($9000) YOU BET we took the gift and bought a new car! We really didn't need to but why pass up the gift horse!

    I think their mini van was not that old and was running perfect!
     
  8. markdenis

    markdenis TS Member

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    It is the biggest CON job and scam by the auto industry headed by the government in the history of our auto industry. The people that used this program to buy a new car at the expense of their brothers, sisters, mom, dad, neighbors and the rest of the American people...well, I have no respect for...PERIOD!

    Mark Rounds
     
  9. KRK32

    KRK32 Member

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    I was wondering if people will have to pay taxes on cash for clunker money like you do for soc. sec. Kirk
     
  10. halfmile

    halfmile Well-Known Member

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    I personally object to the destruction of perfectly good, usable equipment.

    The fuel efficiency mantra doesn't hold water. How long will the suckers who went for it have to drive to break even, after taxes and interest.

    The real winners here are.........Guess who? THE BANKERS! Yep, a whole new pile of credit (yes, that which has alreadydestroyed much of our economy) has been issued.

    I suppose when the cars that go into default are repo'ed the banks will get another bailout.

    I chose to keep my 87 Chev rustbucket pickup. A Goodwrench 350 will not show up in the new stuff.

    HM
     
  11. shannon391

    shannon391 Active Member

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    Most of the buyers are going to be shocked when they see $4,500 added to their income come tax time.
     
  12. warren

    warren Member

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    I thought that if you trade in your cluncker and got $4500 from the gov't the car is supposed to go out of circulation and be junked, if that is true how can the dealer allow another $4500 for a car they don't get to resell?????

    warren
     
  13. Big Heap

    Big Heap TS Member

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    This was actually a gift from Obama to the junk yard guys who supported his campaign. Lots of good salable parts on those clunkers.
     
  14. Paladin

    Paladin Well-Known Member

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    "Most of the buyers are going to be shocked when they see $4,500 added to their income come tax time."


    If that is true, hussein and company have no clue as to the havoc they have sowed. On top of that, since hussein and company lowered the federal income tax amount of withholding WITHOUT lowering the tax rate,,hussein's name will be mud in just one year.

    Open the check book, and get the K-Y America. Just watch.
     
  15. Bruce Specht

    Bruce Specht Well-Known Member

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    An ineffectual extremly expensive bandaide. Thought through by a bunch of money stealing tax cheats tath currently run the government
     
  16. Savage99Stan

    Savage99Stan Active Member

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    Horrible idea. Now I'm paying for some s.o.b. to drive another suv that gets four mpg more than his last one, the lots have no decent used cars for those who need them, and big O puts another tick mark on his march toward socialism.
     
  17. markdenis

    markdenis TS Member

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    Savage99Stan

    Actually you could be paying for some s.o.b that traded their auto or truck in that got better mileage than the new one they traded for. All legal under hussein's Class 3 vehicle code.

    Mark
     
  18. BLACKDOG

    BLACKDOG TS Member

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    I work at a dealership, we are setting on 20 of those POS and would not be surprized if the goverment, screw's us out of them. Several of the car's have declined because the Fed,s can not READ out state dmv infromation. One group of assH&*$ can not agree with another group of assh*&%# DO NOT BLAME THE DEALERSHIPS
     
  19. letts

    letts TS Member

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    Cheer up. This is one Federal program that came in with in the budget.

    Oh! they have not paid the dealers yet, ?????????????????


    Letts
     
  20. bigdogtx

    bigdogtx Well-Known Member

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    Not sure for Fed Inc. Tax, but for sales and state income tax, see link....SURPRISE, SURPRISE, SURPRISE (ala Gomer Pyle),,,,I will guarantee you that 99.9% didn't know/realize this at the get go....
     
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