Cash for Clunkers Gets $2B, Back on Track

[SVOboy]

It’s certainly a mixed bag of news for many of us, but the government’s “cash for clunks” rebate program has gotten an infusion of new cash and will be up and running through at least the end of the month. As we recently posted, the program ran out of its first billion after its first week [...] Related posts:

1. Cash for Clunkers Says Goodbye Tonight
2. 5 Cash for Clunkers Values on which to Spend your $4,500
3. Canada Kills ecoAUTO Program, Rebates to End for Fuel Efficient Vehicles

More...

[MadisonMPG]

Stimulating the economy, but not as much as it seems.

[Xist]

The Department of Transportation also reported that the average fuel efficiency of trade-ins was 15.8 mpg (miles per gallon), compared to 24.9 mpg for the new cars purchased to replace them, translating to a 58% fuel efficiency improvement.

http://www.nhtsa.gov/About+NHTSA/Pre...cessful”

Meanwhile, we want to go from 31.6 MPG to 49.8.

[user removed]

One more govt program subsidizing irresponsible people who make bad decisions.

I think it is still affecting used car prices here (much too high) thus one reason I bought new.

regards
mech

[Xist]

I did not hear about it while I was in Germany. When I came home and saw 1997 Altimas going for $5,500 when I bought one four years previous for $3,800, I just thought it was a sign of the economy.

Then I ended up with my Subaru...

[Iexpedite]

Originally Posted by Old Mechanic

One more govt program subsidizing irresponsible people who make bad decisions.

I think it is still affecting used car prices here (much too high) thus one reason I bought new.

regards
mech

I don't think so. I believe it was more to help out the auto industry with a little fuel economy/economy improvement mixed in. It is neither irresponsible nor a bad decision that leads one to owning an aging vehicle. If you think about it people that drive clunkers do so because they either can't afford a new car (making bad decisions) or they refuse to buy (a good decision). This program motivated good decision makers to upgrade. It didn't subsidize to the point that irresponsible people could make that leap.

As for me, when it came out my aging vehicles were still worth more than the government's offer. I kept driving them, still have 1 of the 2.

[UltArc]

Originally Posted by MadisonMPG

Stimulating the economy, but not as much as it seems.

Originally Posted by Xist

http://www.nhtsa.gov/About+NHTSA/Pre...ly+successful”

Meanwhile, we want to go from 31.6 MPG to 49.8.

Meanwhile, five years later....lol

[dirtydave]

woah man that went badly lol

[darcane]

Originally Posted by Iexpedite

I don't think so. I believe it was more to help out the auto industry with a little fuel economy/economy improvement mixed in. It is neither irresponsible nor a bad decision that leads one to owning an aging vehicle. If you think about it people that drive clunkers do so because they either can't afford a new car (making bad decisions) or they refuse to buy (a good decision). This program motivated good decision makers to upgrade. It didn't subsidize to the point that irresponsible people could make that leap.

As for me, when it came out my aging vehicles were still worth more than the government's offer. I kept driving them, still have 1 of the 2.

I don't think anyone was claiming that owning an aging vehicle is "irresponsible" or "a bad decision", but rather the whole Cash for Clunkers program is.

The people that can't afford new cars were harmed by this program, as it drove up prices in the used car markets by reducing the supply of used cars.

The people that could afford to buy a new car likely didn't drive true "Clunkers" anyways. The people I personally know that used the program had decent, perfectly functional vehicles that had trade in values a little lower than the payout. They could have sold private party for more than they got out of the program.

In the end, it was just an auto industry subsidy done in such a way as to make it more palatable to the general public.

[Fat Charlie]

I liked that program. I offered to give my boss $4500 for his old gas guzzling 2003 Z06. He said no.