Cash for clunkers program proposal - 5/5

[jimvw57]

Yup, that will drive used car prices up to about the same as a new vehicle, plus put a lot of scrap yards/used parts dealers out of buisness.

And just where do you think those rebate funds will come from??? Somebody is footing the bill...Besides, the oil companies love those gas guzzling, oil leaking old wrecks.

[jwight]

Originally Posted by Jordon

Sounds to me like this will put less used vehicles for sale. There are some that cannot afford a new car even if they get that $4500 break, and this will take many of the older cars for the lower class off the market and in the crusher. I just think its a waist, and won't work the way they think it will.

I think that's the idea; instead of waiting for the older, polluting cars to disappear through attrition, speed up the process by offering an incentive. Same thing with various incentives to encourage "greening" up our houses.

[PerryA]

Did I miss the part where it says the car traded has to be scrapped?

The reduced supply of used cars could push prices up, but then there would also be less incentive for new car prices to discount down as deep as they are going now. There would potentially be a wider gap between a used car price and a new car price, so new car sales generate a better margin and the used car retailers or banks would have to offer some good financing on used cars to move them at their new, higher market pricing level.

What I want to see is something retroactive to when we started buying our Smarts. My old car wasn't at the low miles-per-gallon threshold, but I might be able to argue the Smart improves that by 10 mpg or better. Of course, a voucher doesn't help me because I already bought a car - the Smart.

Those with potential collector cars will be unlikely to part with them if they see the supply being depleted by a program like this. The town car someone mentioned earlier might have a higher perceived value as a collectible car if everyone is rushing to dump them based on their age and mileage. If you have one in decent shape, you might take the gamble that it will increase in value as collectors seek them out.

Then there's the secondary market in older cars for people who don't have a trade. I'll sell you my clunker for $1500 so you can trade it for the $3500 voucher. Or I'll junk it and sell you the voucher I don't need for $2000. Look out eBay.

This could stimulate commerce - not all of it what they are aiming for.

[John_H]

Originally Posted by PerryA

What I want to see is something retroactive to when we started buying our Smarts.

And how would this help stimulate sales to assist the distressed auto industry?

[Godfather]

Stupidest idea ever. My 28 year old Dodge pickup gets 20 mpg. A NEW Hybrid Silverado gets....... 20 mpg. Where's the gain? Better idea...... simply stop overcharging for cars and trucks, and get the government OUT of the ever-stringent regulation business.

[Orphan-Beggar]

"The clunker must have been continuously registered and licensed to operate on public roads in any State for a period of not fewer than 120 consecutive days immediately prior to acquiring a voucher."

-New vehicles currently can be titled/registered to two names, correct? (spouse, partner, anyone?)

-What is the process to drop a name from a title/registration, and what are there costs?

[Smart Enuf]

Originally Posted by John_H

And how would this help stimulate sales to assist the distressed auto industry?

Might help with stimulating the distressed aftermarket parts industry.

[Brabus]

hehe, I can't wait to use tax dollars to get a new car. But it's better than the Bush up to $100,000 credit for any vehicle over 6,000 pounds (SUV/Truck credit). I bought a new vehicle in 2003 that has a Gross vehicle weight of 5,997 pounds. lol, just my luck.

I have a 2000 Dodge Stratus which I paid $800 for two years ago and haven't put a penny in it other than gas and oil changes. I've put about 20k miles on it. It has a total of 125k. It's got hail damage, etc. It's from Wizard of Oz land (Kansas).

Plus, I have a $3500 GM card credit toward any GM product that is guaranteed to depreciate rapidly. And then any other incentives GM offers, although I was going to wait for the Volt. Should it ever get built before competition makes something better.

Soooo, my question is whether they are going to compare OLD EPA standards to the new 2008+ standards. Meaning in 2000 my Dodge was rated to get

21 city
29 highway

But by 2008 standards it's estimated to get

17 city
26 highway
20 combined.

Gas Mileage of 2000 Dodge Stratus

So I'm just wondering are they going to compare apples to oranges in terms of EPA ratings?????

Also, does the government give you $7,500 if you buy a hybrid?

[Neonspinnazz]

holy deja-vu!

I read this program when I was on my Vista pc and the news gadget powered up MSNBC. It sounds like a winner to me because it'll help me with my smarting problem and I can care less if that Nissan meets the crusher or not. (I think it needs to be crushed!)

It sounds too good to be true for a teen like me, it makes me can't wait for August! and a job...

Hey CUBE, in 15 to 20 years the U.S. will be collecting smarts!

[John_H]

Originally Posted by Brabus

Plus, I have a $3500 GM card credit toward any GM product that is guaranteed to depreciate rapidly.

While I think you wrote that the GM product will depreciate rapidly, I'm thinking the value of the credit is depreciating wildly as well.

Do you have any reason to believe this GM liability survives the bankruptcy protection?