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Dongotto

Cash for Clunkers

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mshowman
A guy looking for a used SUV might want to hang out near a car dealership and become a third party to a trade. For that matter an enterprising car salesman should be able to turn one sale into two.

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Dan Voss

Waiting to see the loan default rate 12 months from now. Repo business could be good.

And in 12 months, I'd bet the auto makers are going to have some GREAT incentives.

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Dongotto
PC, what did you find more interesting about the fox video, the story or the good looking fox news girl? ???  ???

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Greg Hartman

I don’t see this “program” as any different than the “tax rebates” that were handed out last year.  Then, they took money primarily from people who earn a lot and therefore pay a lot of taxes and literally handed out checks to those who didn’t - they even gave “rebates” to people who paid no taxes at all.  Query – how can you receive a “rebate” when you never paid anything in the first place – isn’t that a “gift”??.  Of course, those from whom the maximum amount was extracted for redistribution didn’t “qualify” to get any “rebate” at all.

Now, the government is taking tax money (once again, primarily from those who pay large amounts/high percentages of taxes) and handing it out in even bigger chunks to buy nice shiny new cars for people happen to own old (i.e. worth less than $4,500), inefficient vehicles.  Unbelievable!!  How can that possibly (!!) be the proper role of government??

It would probably be much cheaper for those who pay big taxes to simply rent a small airplane for each politician and stock it with a large supply of $100 bills, so that they can fly around and drop $100 bills down to the masses in exchange for votes.  We could call it the Bird Of Paradise Stimulus Program.  I’m sure the Bird Of Paradise Stimulus Program would be a popular “program”, just like the rebates and the cash-for-clunkers.

Or, how ‘bout a Mercedes For The Masses Program, in which the government buys everyone (except the “wealthiest Americans” who are evil enough to earn over $200k/year) a brand new Mercedes.  That way, we could insure that all (instead of merely the great bulk as in the Cash for Clunkers Program) of the profits on the auto sales go overseas.  And – think of the social justice.  Everyone except those who dare to earn over $200k gets a new car and those “wealthiest Americans” are reduced to driving clapped out clunkers.  Ah yes, America as it should be.

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Rex Hoppie
I saw an interview with a scrap yard dealer.  He has mixed feelings.  He is busier than busy right now scraping clunkers.  They part the cars they get out and do the same with the clunkers except that the clunker motors must be destroyed.  He questions destroying the motors and is fearful of slow times ahead after the flurry of clunkers is over.

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lee sykes

Probably makes new car dealers less likely to budge off full sticker price so the bargain you're getting is probably negligible.

Fact is, you still have to buy a new car to cash in and a new car is a new car. High excise tax, high insurance and the monthly payment yoke.   I guess it's a good deal if you can afford a new car at this time anyway but I doubt it will put a new car key in many new hands.

It helps the car dealers sell new cars to people who could afford them anyway.   Just giving away money to people who don't need it.

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12ette
Five reasons some are saying this is a flawed program. FWIW

http://www.fightcashforclunkers.org/

This link like G. Beck tell me little.  Mostly political anecdotes and hyperbole.

The Cash for Clunkers had good intentions, but as typical in an oligarchy special interests and bought and paid for politicians have ruined it.  

Greg,

"Democracy" sucks don't it.  You are in a group of less than 5% of the population.

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Dongotto
I have to say that while I got a great deal, I think the program is flawed. I traded a 98 that was rated at 12mpg, for a new one getting 15mpg with a Hemi. I think for someone to be able get the cash for clunker you should have to increase your mpg by at least 5-6. I don't know just doesn't seem like 3mpg is enough.

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River19

The Top 10 vhiclees traded in under this program are from the "American" manufacturers....the Top 10 purchased under this program are dominated by "Foregin" manufacturers......

Interesting how Mkt share is moving around here in actual cars on the road.

Steve

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BradSouth

you fellas need to watch it

flag@whitehouse.gov oh wait i forgot that was for healthcare.

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NateVT
Its seriously worrying to me the amount of money this administration is spending (and proposing to spend).  The gov't doesn't *have* this money - its all on loan.  Instead of "cash for clunkers" who doesn't the gov't just ship every man, woman and child a new credit card with a $3000 limit or something?  At least the concept would be more truthful (ie, its gotta get paid back some time guys).

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Guest

Of course, I know that all the critics of the 'Cash for Clunkers' program were in an uproar about the SUV 'bonus depreciation' program that gave a 50% tax credit on the purchase of SUVs and large trucks during much of the Bush tenure.  Right? ;-)

From Kiplinger's website giving advice on that program:

The tax savings really pile up when you put bonus depreciation together with the existing SUV break. Here's how it works: You purchase a heavy SUV costing, say, $50,000 during 2008, to be used exclusively for business and start using it right away. You'll first write off $25,000, which is the limit for first-year expensing of these vehicles. Next, you apply 50% bonus depreciation to the remaining $25,000 of cost, which allows you to write off another $12,500. Finally, you deduct 20% of the $12,500 balance as regular depreciation. Your total tax savings: A whopping 80% of the purchase price -- or $40,000.

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Greg Hartman

Of course, I know that all the critics of the 'Cash for Clunkers' program were in an uproar about the SUV 'bonus depreciation' program that gave a 50% tax credit on the purchase of SUVs and large trucks during much of the Bush tenure.  Right? ;-)

The fact that the SUV program was wrong in every way doesn't make Cash For Clunkers right.

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calgaryrookie

Sounds like an unnecessary program. glad we don't have it.

Sales numbers up here in the great white north have been startling to me. YTD auto sales overall have only fallen off 6% over the same period last year. And the biggest surprise is that the biggest selling brand for June and July has been FORD, for &^%&% sake!!!!! The report claimed that Ford hasn't been the number one selling brand in Canada for 60 years! Ford sales are up 47% over July last year! Ford trucks are up 60%. We like the F-150 but come on... Kia and Lexus are the only other ones up. Everyone else is down (though Toyota sold 20% more trucks)... GM is WAY down (-41%)

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