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‘Cash for clunkers’ going great guns

Posted Aug 07 2009, 05:49 PM by Karen Datko
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This post comes from James Limbach at partner site ConsumerAffairs.com.

The nation's auto dealers are seeing cars fly off the lot thanks to the government's "cash for clunkers" program, which is getting an infusion of $2 billion, compliments of you, the taxpayer.

Figures released by the National Highway Transportation Safety Administration show there have been 245,384 dealer transactions as of Aug. 7, for a total of $1.03 billion in rebates.

NHTSA figures from Aug. 5 showed Michigan leading all states in requested voucher dollar amounts with $44.4 million, followed by California at $39.9 million. Bringing up the rear was Wyoming with just $533,000.

The government says cars purchased under the program are, on average, 21% above the average fuel economy of all new cars currently available, and 63% above the average fuel economy of cars that were traded in. This, officials maintain, means the program is raising the average fuel economy of the fleet, while getting the dirtiest and most polluting vehicles off the road.

NHTSA records show that nearly half of new vehicles purchased under the program were from the U.S. Big Three. Their share in the program -- 45% -- is equivalent to their overall share in the auto market.

Four of the top 10 selling vehicles are manufactured by the Big Three. Of non-Big Three purchases, preliminary analysis suggests that well over half of these new vehicles were manufactured in the United States.

Motorists are unloading SUVs and trucks in a big way as part of the program. The top five trade-in vehicles are the Ford Explorer 4WD, Ford F150 pickup 2WD, Jeep Grand Cherokee 4WD, Jeep Cherokee 4WD and Dodge Caravan/Grand Caravan 2WD.

The top five new vehicles purchased are the Toyota Corolla, Ford Focus, Honda Civic, Toyota Prius and Toyota Camry.

Related reading at ConsumerAffairs.com:

AGs worry about ‘cash for clunkers' scams

GM, Chrysler personal-injury victims left stranded

Mortgage lender's collapse leaves borrowers adrift

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Comments

 

Another 'great' program where the people who have made bad decisions are rewarded. What about us who for years were concerned with gas prices and bought small fuel effecient cars? For our good choices we get to pay for our car and help pay for the people who made poor choices thru our taxes?  I thought the $50 for the Digital converter boxes was the worst government program ever created, I wonder what will be next.

Ben (Posted 08.07.09 9:25 PM ) Report Abuse

How can we be sure that the people who are purchasing these vehicles will not default on their loans and create a senario very similiar to the mortgage mess?  It appears to me that it could be another potential disaster.  I too do not like the idea that my taxes are paying for these programs.  It is time to reward the people who can handle their finances and are responsible.

Judy (Posted 08.08.09 1:29 AM ) Report Abuse

Who will pick up the mess when some of the people can't make the monthly payments when the economy tanks even further down the toilet?

Nancy (Posted 08.08.09 8:38 AM ) Report Abuse

The program is going great guns ... what happens when it runs out and sales fall to record lows?  The program runout ... so will sales.

We've given GM & Chrysler how many BILLIONS ... and they're not even on the top five cars selling with this program.  Four our the top five cars selling ... are foriegn.

These people buying are people that most likely did NOT have a car payment with thier "clunkers" ... now they have a $400/month payment ... gues what they're not going to be doing ... spending that $400 in the economy each month.

Jeff (Posted 08.08.09 11:05 AM ) Report Abuse

I bought a car I could afford to both drive and maintain, and the same for my home.  Not only was I dragged into the current mess by the irresponsible actions of other I now must fund the reward program for their bad behavier.

Otto Maddax (Posted 08.09.09 9:11 AM ) Report Abuse

I too am wondering when people who have taken financial responsibility their entire lives are going to be rewarded.  When Medicare part D came out to help lower drug costs we had Prescription Coverage thru my husbands employer where he retired.  In the government program they wrote in that if your program and the Medicare Part D program was just as good the employer could drop the Prescription plan.  They are a small company that has always self funded the insurance.  So - they dropped it.  I wouldn't dare question it - they may drop our medical part .  That cost us an extra $60 a month, plus changes in the drug's available.  We have kept up our house payments, , don't use credit cards, and drive an older model car.  On top of it all we have done without a retirement life because our investments hit bottom.  WHEN do we get something for being responisble?????

G.A. Stafford (Posted 08.09.09 1:58 PM ) Report Abuse

Why do you folks always complain,how you got a raw deal. This program is good for the country. We send billion overseas to help countries that may not care a lick about the usa. Nobody says a word.Next most of you do not pay that much in taxs and you make sound like the whole thing is coming out of your pocket.Judy and nancy most of the people buying these cars have great cedit or there paying cash.

joel horwath (Posted 08.09.09 4:53 PM ) Report Abuse

What a sop to the UAW!  If this was supposed to benefit the environment there would have been a requirement that the new car get at least 10mpg MORE than the clunker being traded in....not 2-5mpg!  Although this may help the UAW, what does it do to the employees of garages that now don't have nearly as many vehicles coming in for maintenance?  Or to the parts suppliers? Or to the used car buyers who would have loved to have upgraded to a 4-5 year old vehicle that is now being crushed?  Or to the charities that have fewer cars being donated?  The UAW contributions to the Dems have paid off BIG TIME, at a big cost to the rest of us!

bob askins (Posted 08.09.09 5:17 PM ) Report Abuse

The vast majority of these "clunkers" that the taxpayers purchased were old, wornout, high mileage cars destined for the junkyard. They weren't going to be on the roads for long if at all. Now the taxpayers have to bail out the cars companies even further.

Why isn't this subsidy extended to even higher MPG products like motorcycles?

This program sucks. It is more big government courtesy of Obama. Nov 2010 can't some soon enough.

cp9800 (Posted 08.09.09 5:20 PM ) Report Abuse

The purchases of these new cars is on better footing than previous car purchaseres in the past. This just like the home loans situation a corpse could get a loan, now you have to have real skin the game and a higher credit rating. The program is however a payback to the unions and others who supported Obama.

chris (Posted 08.10.09 6:23 AM ) Report Abuse

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