Public Service Announcement - Cash For Clunker's Ends Monday

[Porsche Monkey]

My very sweet Chinese lady neighbor barely speaks any English. She had a pos Nissan sedan that I was constantly fixing for her. I don't do side work but she is my wifes friend so I didn't have a say in it. Anyways, last week she tries to trade this thing in on cfc. It is the definition of pos but it didn't qualify. So they end up buying a used 07 rental camry with 30K on it.  This thing has no options at all but is a pretty red car. They gave her $2k on the trade in which is cool because it wasn't worth 500 but they ass raped her without any lube on the camry for $30k.  The cars nada is around 18. She still thinks she got a great deal. Several things anger me about the whole thing, her getting screwed on the camry and the old car not qualifying for cfc because at one point it got better than however much mpg.

[derby]

In the end....... a large chunk of people will now be driving more fuel efficient cars, more miles than before. Conserving no extra fuel. People consume based on whats in the wallet. If my wallet says I can go 500 miles in my current ride..... I'll go 500 miles. If I have a car that will now allow me to further on the same amount of cash.... I'll go further. NO FUEL SAVINGS.

i determine my destination by how long i want to sit in a car, not by how much money is in my wallet.

the "mr wallet says i can spend another three ass-numbing hours driving to wherever i end up" argument doesn't work in my book.

[Porsche Monkey]

price them low enough and you'll move them

one of the local dealerships had a funky deal like that during the clunker program.  they were selling cars for 2-3k under blue book.  i think they figured it worked out since the 4500 made up for a good bit of profit.

Doesn't work for us since our new cars don't qualify for the program. Any way we could compete is to offer way less for a used car trade in than another dealer so we could make a profit reselling it.

[NAKID]

I drive where ever I want to drive. Money doesn't play a factor in getting there...

[ducatiz]

Doesn't work for us since our new cars don't qualify for the program. Any way we could compete is to offer way less for a used car trade in than another dealer so we could make a profit reselling it.

gotcha

well, shit happens.  that's about all i can say without getting the thread locked.

[Porsche Monkey]

gotcha

well, shit happens.  that's about all i can say without getting the thread locked.

I hear ya.  Fun discussion though. 

[angler]

+11ty billion to good riddance.  There has been tons of academic research on these types of programs.  They suck.

Buying back clunkers to reduce emissions flat out doesn't work.  CA and other states have tried them and there has been tons of research that says emissions remain neutral or go up.  The logic goes like this; cars that are bought back are typically not daily drivers.  Cars that are replaced become the daily driver because they are newer/more comfortable/whatever.  Happens every time.......Not to mention carbon footprint.  Makes more sense in many cases to repair and keep driving gas guzzlers than buy a new vehicle, from an overall carbon footprint standpoint.  Not to mention these cars are being crushed and not entering the used part market.   I could go on......

Buying back clunkers to stimulate demand robs the future to boost current demand.  Everyone is talking about what a success this program has been.  Sure it has sold a ton of cars, but current prognostication suggests that once the program is over, auto demand will once again drop precipitously, likely to a level lower than would have existed if this subsidy wasn't around.  Many feel the reduction in demand will persist for a long time.  Automakers are already ramping up manufacturing capacity that will lag long enough and produce too many cars for a market that will recoil after this thing sunsets on Monday.   How is that a good thing for an industry that is already in a bind?

Perhaps I am a pessimist.  I will tell you one thing, nothing good ever comes of subsidies, at least not in the opinion of this economist.......

[The Architect]

+11ty billion to good riddance.  There has been tons of academic research on these types of programs.  They suck.

Buying back clunkers to reduce emissions flat out doesn't work.  CA and other states have tried them and there has been tons of research that says emissions remain neutral or go up.  The logic goes like this; cars that are bought back are typically not daily drivers.  Cars that are replaced become the daily driver because they are newer/more comfortable/whatever.  Happens every time.......Not to mention carbon footprint.  Makes more sense in many cases to repair and keep driving gas guzzlers than buy a new vehicle, from an overall carbon footprint standpoint.  Not to mention these cars are being crushed and not entering the used part market.   I could go on......

Buying back clunkers to stimulate demand robs the future to boost current demand.  Everyone is talking about what a success this program has been.  Sure it has sold a ton of cars, but current prognostication suggests that once the program is over, auto demand will once again drop precipitously, likely to a level lower than would have existed if this subsidy wasn't around.  Many feel the reduction in demand will persist for a long time.  Automakers are already ramping up manufacturing capacity that will lag long enough and produce too many cars for a market that will recoil after this thing sunsets on Monday.   How is that a good thing for an industry that is already in a bind?

Perhaps I am a pessimist.  I will tell you one thing, nothing good ever comes of subsidies, at least not in the opinion of this economist.......

Spot on.    The goal was to give the auto makers a temporary boost.  It worked.  But now they're going to pay the price and so are we.

I didn't think the program was really intended for reducing emissions.  Was it?  I hope not.  Do they have any idea of what it takes to manufacture a vehicle? 

[Porsche Monkey]

Spot on.    The goal was to give the auto makers a temporary boost.  It worked.  But now they're going to pay the price and so are we.

I didn't think the program was really intended for reducing emissions.  Was it?  I hope not.  Do they have any idea of what it takes to manufacture a vehicle? 

I think they claimed it would reduce emissions further down the road.  One of the problems I see is that people that really drive clunkers, the cars that are gross polluters, are the people that can't afford a new car even with the cfc incentives.  The people who took advantage were probably in the market already and would have purchased a new or newer vehicle anyway. 

[herm]

reduced emissions was mostly for the press IMO......

maybe the dealers think that the destruction of all those used cars will cause more folks to come in and spend too much money (which they cant afford) on a new car instead.

[erik822]

Honestly, I'm just happy it got a lot of SUVs off the road. Fewer SUVs and more cars means I'm now marginally less invisible on the bike. Marginally being the key word, of course.

[Triple J]

+11ty billion to good riddance.  There has been tons of academic research on these types of programs.  They suck.

Buying back clunkers to reduce emissions flat out doesn't work.  CA and other states have tried them and there has been tons of research that says emissions remain neutral or go up.  The logic goes like this; cars that are bought back are typically not daily drivers.  Cars that are replaced become the daily driver because they are newer/more comfortable/whatever.  Happens every time.......Not to mention carbon footprint.  Makes more sense in many cases to repair and keep driving gas guzzlers than buy a new vehicle, from an overall carbon footprint standpoint.  Not to mention these cars are being crushed and not entering the used part market.   I could go on......

Buying back clunkers to stimulate demand robs the future to boost current demand.  Everyone is talking about what a success this program has been.  Sure it has sold a ton of cars, but current prognostication suggests that once the program is over, auto demand will once again drop precipitously, likely to a level lower than would have existed if this subsidy wasn't around.  Many feel the reduction in demand will persist for a long time.  Automakers are already ramping up manufacturing capacity that will lag long enough and produce too many cars for a market that will recoil after this thing sunsets on Monday.   How is that a good thing for an industry that is already in a bind?

Perhaps I am a pessimist.  I will tell you one thing, nothing good ever comes of subsidies, at least not in the opinion of this economist.......

Well said 

[acalles]

the cars that are gross polluters, are the people that can't afford a new car even with the cfc incentives.  The people who took advantage were probably in the market already and would have purchased a new or newer vehicle anyway. 

even worse.

people who drive these "clunkers" that were traided in probably cannot afford a new vehicle or they would have bought one before the program..

I can't wait to see how much higher repo numbers start comming in.

[Porsche Monkey]

even worse.

people who drive these "clunkers" that were traided in probably cannot afford a new vehicle or they would have bought one before the program..

I can't wait to see how much higher repo numbers start comming in.

Yup. My mom in law was trying to get in on it. I would have ended up making the payments if she did. 

[Grampa]

i determine my destination by how long i want to sit in a car, not by how much money is in my wallet.

the "mr wallet says i can spend another three ass-numbing hours driving to wherever i end up" argument doesn't work in my book.

yer rich...so you dont count