97 Billion more for clunkers needed

[shadows]

Clunkers for cash suppose to end today.  Of the some 136M clunkers the 3B is estimated to take only 1% of those qualifying reregistered gas guzzler off the roads.  Now if we allot another 97B we can get them all off the roads and put the used car industry in  bankruptcy.  (unemployed)

If we look at it the stimulus to buy new cars is not evenly divided among the three classes we have established.  The super rich, the rich and the working poor.   The super rich don't give a damn about gasoline as they dwell on a status quo on large luxurious cars.   The rich can continue to collect the bonus by trading the wife's car for a smaller new car.   Then there are the working poor who are under pressure from home loan payments, overdue credit cards and layoff which restricts them from adding another $200 dollars a month on a new car loan.

Considering all factors are you in favor of extending the stimulus?  We don't have to consider the government rebates of an additional few billion dollars as we just continue to print more new money that has the same value as that 3 billion we just passed out.   It all for step starting the economy but what daddy can't pay the children will pick up the tab.

Are you for it or against it?     

 

[waterboy]

It seemed effective as a booster shot for the auto industry. Yes, it helped those who didn't need the help most. No, it shouldn't be extended.

[brianh]

I can't believe we allowed that program to be used to buy Asian imports. I know some of those manufacturers have plants in the US, but I don't think that was the intention of the program at all.

[rwarn17588]

I can't believe we allowed that program to be used to buy Asian imports. I know some of those manufacturers have plants in the US, but I don't think that was the intention of the program at all.

By that logic, you shouldn't use your tax refund to buy foreign-made goods, either.

No more European beer and wine for you! No more imported cheese for you! No more Chilean grapes for you! No more Taiwanese-made computers for you. No more ...

Whether you like it or not, this is now an interconnected world economy.

[Conan71]

I can't believe we allowed that program to be used to buy Asian imports. I know some of those manufacturers have plants in the US, but I don't think that was the intention of the program at all.

There were most definitely models which were built overseas on the list which seemed to go against stimulating U.S. automakers.  Now that incentive is over with what's next?  On the news, automakers were reported as ramping up production of new units to replace rapidly shrinking inventory.  

The only way I see this as a success is if this brought out people who would have never otherwise considered buying a new car, and those who are regular traders and fleets still keep buying new cars and light trucks.

[Conan71]

By that logic, you shouldn't use your tax refund to buy foreign-made goods, either.

No more European beer and wine for you! No more imported cheese for you! No more Chilean grapes for you! No more Taiwanese-made computers for you. No more ...

Whether you like it or not, this is now an interconnected world economy.

Lighten up RW.  His point isn't lost on me or the American automotive industry.  This was intended not only to get gas guzzlers off the road but to help the AMERICAN automotive industry of which, 2/3 of the manufacturers went BK in the last year.  In this global economy has Korea, Germany, Japan, China, etc. offered a similar program to their citizens and included U.S. made vehicles in it?

[rwarn17588]

Lighten up RW.  His point isn't lost on me or the American automotive industry. 

His point isn't lost on me, either. Is the program perfect? No. But the fact remains that the program was massively popular and helped reduce the bloated inventories of car lots across the United States, which is no small thing, and boosted the finances of said car lots, which is no small thing, either.

It's almost like criticizing Ted Williams in 1941 for not hitting .500. 

[TURobY]

According to Edmunds, the top "Clunker Buys" have been overwhelmingly American-based cars. The government tallies vehicles by subdividing models according to engine and transmission types, and then counting them as separate models. Edmunds tallies vehicles by make and model.

[Conan71]

According to Edmunds, the top "Clunker Buys" have been overwhelmingly American-based cars. The government tallies vehicles by subdividing models according to engine and transmission types, and then counting them as separate models. Edmunds tallies vehicles by make and model.

So says someone who bought an American car.  Do you miss the Bronco II at all? 

[Conan71]

His point isn't lost on me, either. Is the program perfect? No. But the fact remains that the program was massively popular and helped reduce the bloated inventories of car lots across the United States, which is no small thing, and boosted the finances of said car lots, which is no small thing, either.

It's almost like criticizing Ted Williams in 1941 for not hitting .500. 

That damn Ted!

[TURobY]

So says someone who bought an American car.  Do you miss the Bronco II at all? 

I moved to a Ford Escape, which I LOVE! But you know, I will always hold a special place in my heart for my old clunker.

[brianh]

If that Chevy Volt ever makes it out in mass quantities, it might be a good time for another cash for clunkers program geared towards that vehicle. Still would like to wait for the reviews to come in on that thing though.

[RecycleMichael]

It's almost like criticizing Ted Williams in 1941 for not hitting .500. 

+ 1 for using Hall of Famer reference.

[rwarn17588]

If that Chevy Volt ever makes it out in mass quantities, it might be a good time for another cash for clunkers program geared towards that vehicle. Still would like to wait for the reviews to come in on that thing though.

Thing is, Chevy Volt isn't going to be the only electric vehicle coming out in the next two years -- which is making GM very nervous.

[we vs us]

As someone said upthread, it helped to sop up all the inventory that was sitting there idle on the car lots.  So the stimulus was as much for the car dealerships as it was for the car manufacturers themselves.  It was good news overall, because all the 2009 inventory that was bought and paid for and sitting there not moving on the lots finally got some churn, allowing the manufacturers to ramp up 2010 models for shipment onto the lots. 

The whole supply chain benefitted, in other words, not just GM and Ford at the factory level.  And regardless of whether Mistubishi or Honda or Toyota took some profits back to Japan/Korea/Wherever, all of their American dealerships saw the first cut of the profits. 

I'd also say that it probably increased the pool of car buyers, and didn't just affect those who were already going to buy.  If that POS that's out on blocks in your driveway suddenly became worth much more than it might otherwise be worth, you might start thinking of hauling it to Jim Bob's Car Lot and trading up. 

I'd call it a win win, personally.