Cash for Clunkers Could Be Done at Midnight Tonight Cash for Clunkers Could Be Done at Midnight Tonight
Date posted: 07-30-2009
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DETROIT ? Transportation Secretary Ray LaHood has alerted key senators that the Cash for Clunkers program is expected to run out of money as early as midnight tonight.
Earlier rumors suggested that the Department of Transportation could make an announcement this evening regarding the status of the Clunkers program and how close the program is to running out of its $1 billion allocation.
If LaHood's concerns are correct, the DOT could announce the program has run out of money completely or could suspend it temporarily while deals in the pipeline are completed and an assessment is made of how much has been spent, Washington sources tell AutoObserver.com.
A DOT spokesman said no announcement is scheduled, but if an announcement is made, it would be posted on the Web site for the Car Allowance Rebate System (CARS).
From the start, the program called for a November 1 expiration or the depletion of the $1 billion in funding. It is clear the program will run out long before November 1 and could run out in a matter of days.
As of Thursday morning, the CARS Web site showed $779 million of the $1 billion remained. The roughly $220 million used represents transactions dealers have submitted for government reimbursement and administrative costs.
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148
SoWal Insider
Just Announced: If you have a wife or husband with bad gas, the govt. is now allowing you to get the $4,500 trade in for them as well.
Could I keep him and still get the bailout?
Beach Fanatic
Remember the circumstances during the time this program was initiated. The economy was and continues to be in the tanks. People were scared, scared, scared. I think this program was less of a green program than a small touch of valium for those of us whose savings were being sucked into the sewer and was an attempt to "do something positive" We had just had months of the W packing and twiddling his thumbs. The auto industries were in the tank, and there was a strong sense that nobody cared or had a clue. I think inaction causes paralysis and this was an attempt to get the county's heart pumping again.
Beach Fanatic
Remember the circumstances during the time this program was initiated. The economy was and continues to be in the tanks. People were scared, scared, scared. I think this program was less of a green program than a small touch of valium for those of us whose savings were being sucked into the sewer and was an attempt to "do something positive" We had just had months of the W packing and twiddling his thumbs. The auto industries were in the tank, and there was a strong sense that nobody cared or had a clue. I think inaction causes paralysis and this was an attempt to get the county's heart pumping again.
YES!!! jensieblue is back
SoWal Insider
SJ - you think the program isn't green because while they are encouraging trading in vehicles for those with lower emissions and higher mileage, they aren't selling them for parts?
What exactly are they doing w/ the trade ins? Recycling the metal? Letting them rot in junkyards? I find it hard to believe they aren't using them for parts.
"Dealers would send the Cash for Clunkers trade-ins to a salvage operator. The legislation requires the engine, transmission and other drivetrain components to be destroyed so they can’t be reused and continue to pollute the air and burn excessive amounts of fuel.
Salvage operators would be free to resell other vehicle parts, however, which could be used to repair other vehicles or recycled as scrap and used to manufacture other products."
Interesting note, what you see happening in the videos above is a requirement in the legislation. The dealers have to blow up the engine before sending it to the scrap yard. Go figure.
http://www.cars.gov/files/6265_EngineDisablementProcedures.pdf
http://www.cars.gov/dealer/faq
Edited
SoWal Insider
Remember the circumstances during the time this program was initiated. The economy was and continues to be in the tanks. People were scared, scared, scared. I think this program was less of a green program than a small touch of valium for those of us whose savings were being sucked into the sewer and was an attempt to "do something positive" We had just had months of the W packing and twiddling his thumbs. The auto industries were in the tank, and there was a strong sense that nobody cared or had a clue. I think inaction causes paralysis and this was an attempt to get the county's heart pumping again.
I'll avoid the Bush bashing
and just add that from reading up on this, it's clearly meant to remove cars from the road so that people will purchase new autos. This was primarily aimed at helping the auto industry out. There's really no "green" gain to this, it's simply an auto sales stimulus program.
SoWal Expert
SJ - you think the program isn't green because while they are encouraging trading in vehicles for those with lower emissions and higher mileage, they aren't selling them for parts?
What exactly are they doing w/ the trade ins? Recycling the metal? Letting them rot in junkyards? I find it hard to believe they aren't using them for parts.
My understanding is that they cannot by law use them for parts. The dealers are required to destroy the autos, not too different than GM destroying the Electric Car back in the early eighties. If I'm on a tight budget and my vehicle which gets 18 mpg, has transmission problems, thanks to this program, I will be left with only one option, buying a new transmission which will likely cost more than my car is worth, and it will simply mean more $$$ in the pockets of the dealership and the parts company, while burning more energy to produce the new transmission. Why the gov't requires the auto to be destroyed shows a lack of thought, except for the thought that they need to pay back the automakers for their lobbying efforts to get "friendly" politicians in office.
SoWal Expert
I'll avoid the Bush bashing... or as it was originally shoved into legislation, consider it "Emergency War Funding."
At least it is helping stimulate the auto industry, I mean the "NEW Car" auto industry. I'm sure that used car salesman will be looking for new jobs in this market when people would have been expected to be buying used autos rather than new.
SoWal Insider
I'm disappointed it didn't allow you to buy used. There are many good used cars that get much better mileage than my 1993 Chevy and I could save more buying used. Guess I'll have to wait for some of these to get repo'ed.
SoWal Insider
Do I get to trade in my Ho for a shiney new discounted Ho? Groovy! Although, I wouldn't do it...........I did give an old International away to charity and didn't even claim it on my taxes as I was advised that it red flags those boys at the IRS to order an audit. Just gonna keep my old clunker and let everybody else get the benefits from the government printing US Tender.
SoWal Insider
Just so long as you shop for something Lynnie, that's all government cares about.
In 2003 Bush told us all to go out and shop, and we did, big time. In 2008, Bush sent us checks so that we could all go out shop, we didn't. In 2009, Obama knows we don't want to shop, so he is giving away rebates on products to get us to shop. (8k a house and 4.5K for a car, and he's refinancing our mortgages to boot.) In addition to this, the federal government is spending trillions (with a 'T') in order to replace all the shopping we're not doing because we're all flat broke... and to pay for it all, government is borrowing money like crazy. $55,000 per houshold in just the last year. :shock: This may not end well.
In 2003 Bush told us all to go out and shop, and we did, big time. In 2008, Bush sent us checks so that we could all go out shop, we didn't. In 2009, Obama knows we don't want to shop, so he is giving away rebates on products to get us to shop. (8k a house and 4.5K for a car, and he's refinancing our mortgages to boot.) In addition to this, the federal government is spending trillions (with a 'T') in order to replace all the shopping we're not doing because we're all flat broke... and to pay for it all, government is borrowing money like crazy. $55,000 per houshold in just the last year. :shock: This may not end well.
Edited
SoWal Insider
Just so long as you shop for something Lynnie, that's all government cares about.
In 2003 Bush told us all to go out and shop, and we did, big time. In 2008, Bush sent us checks so that we could all go out shop, we didn't. In 2009, Obama knows we don't want to shop, so he is giving away rebates on products to get us to shop. (8k a house and 4.5K for a car, and he's refinancing our mortgages to boot.) In addition to this, the federal government is spending trillions (with a 'T') in order to replace all the shopping we're not doing because we're all flat broke... and to pay for it all, government is borrowing money like crazy. $55,000 per houshold in just the last year. :shock: This may not end well.
I hear ya'.
Instead of a shiney new car, I'd rather have a new pair of boots. Bought something over the weekend and didn't get the tax-free advantage because my purchase was over $100. WT~~~~~
Meow
The boy's '98 4 Runner is a clunker! Can we sell it, take the government cash and run w/o buying a new car?
SoWal Insider
The boy's '98 4 Runner is a clunker! Can we sell it, take the government cash and run w/o buying a new car?
I wouldn't pass the chance up if I had a clunker and needed a new ride Kitty. Getting back 5 grand of the taxes they took.. I say never pass up a good crisis!
Beach Fanatic
I hear ya'.
Instead of a shiney new car, I'd rather have a new pair of boots. Bought something over the weekend and didn't get the tax-free advantage because my purchase was over $100. WT~~~~~
That want work-----------That want help the UAW unless the boots are made in a UAW upolstry shop somewhere in Detroit.
Beach Fanatic
Just so long as you shop for something Lynnie, that's all government cares about.
In 2003 Bush told us all to go out and shop, and we did, big time. In 2008, Bush sent us checks so that we could all go out shop, we didn't. In 2009, Obama knows we don't want to shop, so he is giving away rebates on products to get us to shop. (8k a house and 4.5K for a car, and he's refinancing our mortgages to boot.) In addition to this, the federal government is spending trillions (with a 'T') in order to replace all the shopping we're not doing because we're all flat broke... and to pay for it all, government is borrowing money like crazy. $55,000 per houshold in just the last year. :shock: This may not end well.
Is it just coincidence that the government now owns both of those industries????
Beach Fanatic
Do I get to trade in my Ho for a shiney new discounted Ho? Groovy! Although, I wouldn't do it...........I did give an old International away to charity and didn't even claim it on my taxes as I was advised that it red flags those boys at the IRS to order an audit. Just gonna keep my old clunker and let everybody else get the benefits from the government printing US Tender.
Me too Lynnie - I have a 98 Suburban with 140,000 miles - runs perfectly, has never had a major maintenance issue and is paid for. I will let it die a natural death and then purchase a used car that meets my needs when that time comes.
SoWal Expert
I don't have a problem w/ them wanting the transmission/engine destroyed and then letting the rest of the vehicle be sold for parts.
The program is called "cash for clunkers", not cash for well running vehicles , and part of the goal is getting vehicles w/ better mileage/emissions on the road.
Seems pretty dumb to pay people incentives to get inefficient cars off the road, then let someone else put that engine back on the road.
The program is called "cash for clunkers", not cash for well running vehicles , and part of the goal is getting vehicles w/ better mileage/emissions on the road.
Seems pretty dumb to pay people incentives to get inefficient cars off the road, then let someone else put that engine back on the road.
Beach Fanatic
The program is called "cash for clunkers", not cash for well running vehicles , and part of the goal is getting vehicles w/ better mileage/emissions on the road.
Actually it is now called the Car Allowance Rebate System Formally Referred to as Cash for Clunkers. It reminds me of when Prince became "the symbol" and his name got longer to explain it.
CARS.gov - Car Allowance Rebate System - Home - Formerly Referred to as “Cash for Clunkers”
Beach Fanatic
Comment from a blog
"How long will it be before we start hearing stories of people who turned in their clunker (which, although it was old, was a perfectly good vehicle) to purchase a brand new car (which they probably couldn?t afford, but didn?t want to pass up a deal) find themselves in a position of not being able to make their monthly payment and their car is repossessed?"
"How long will it be before we start hearing stories of people who turned in their clunker (which, although it was old, was a perfectly good vehicle) to purchase a brand new car (which they probably couldn?t afford, but didn?t want to pass up a deal) find themselves in a position of not being able to make their monthly payment and their car is repossessed?"
SoWal Expert
I think at that point both the purchaser and the person who approved the loan should be run over by the new vehicle!
We need to get vigilant about reinstating Darwinism.
We need to get vigilant about reinstating Darwinism.
SoWal Insider
I think at that point both the purchaser and the person who approved the loan should be run over by the new vehicle!
We need to get vigilant about reinstating Darwinism.
And then they should wash it and sell it to me, since I don't want to buy new
Edited
SoWal Expert
Yes, I forgot to add that the vehicle would then be sold and any profit used to pay off the national debt. ;-)
Beach Fanatic
This is all such a mess. As I said in another string, the government needs to get out of the way. They have no idea what they are doing. Or do they..... and we are headed to socialism, by design.
Beach Fanatic
Why do all these government programs reward bad behavior/decisions? I didn't purchase a "clunker" that gets low gas mileage and I didn't buy a house I couldn't afford. It seems responsible behavior must be it's own reward and be punished by being called upon to pay for the errors of others. There is something just wrong about that.
SoWal Expert
I don't have a problem w/ them wanting the transmission/engine destroyed and then letting the rest of the vehicle be sold for parts.
The program is called "cash for clunkers", not cash for well running vehicles , and part of the goal is getting vehicles w/ better mileage/emissions on the road.
Seems pretty dumb to pay people incentives to get inefficient cars off the road, then let someone else put that engine back on the road.
If what you state in bold is true, wouldn't you be for total destruction of the car, so that people who owned older vehicles and didn't want to trade, would be sheITE out of luck when they had a fender bender or a tranny went bad?
The gov't may call it one thing, but that means nothing. You can turn in a 2008 model if it qualifies, and it could be in show room condition. I find it most interesting that an auto getting 18 mpg is crushed while purchasing a so-called "fuel efficient" vehicle, getting 19 mpg, gets you $4500 in your pocket.
I hear many people forgetting that not everyone can or wants to afford the cost of buying a new vehicle, even if it comes with a $4500 discount. Driving a $35,000 vehicle off the showroom floor costs you much more than $4500, compared to driving a similar car off the showroom of your neighbor's front lawn.
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