They are politicians... Looking for reason there is like looking for intelligent life in space... It might be there, but none have ever found it...

 

Stimulate the economy, the rebate money gets recirculated several times, creating a multiplier effect. Reduce our insane dependence on imported energy a bit. Keep some auto supplier companies in business, saving jobs, which saves the government from paying unemployment, etc. Add all the various effects up, and this is really a no brainer, unless your political philosophy gets in the way of what's best for America. The House voted 316-109 to expand the program, most of the 109 opponents were diehard conservatives, who despise any government action in the economy.

There are also environmental benefits, but that's a whole different argument, and this works even if you don't consider those.

 

Why not take the Heretic's money before he takes all mine.

I jumped on the opportunity to trade in my beloved '94 Suburban 4x4 for a new vehicle, knowing that it was getting crushed rather than recycled. I figured why not get something out of it - I had owned it since new and with the downturn in the economy and fuel prices being high the trade in value was worth squat. Trying to sell it out right was a waste of time - the best offer I had received was $1500.
and this was not a junker but a daily driver with 157k on it.
realistically I went from 10mpg to 25mpg with the new vehicle
I think that is what the program was about.

 

Well, yes to all the above... It's supposed to keep the wheels spinning... And it just might...

But the comment on political philosophy might be a double edged one for you...

No, there are NO positive effects on the environment... None what so ever... There might be if the ideal of the concieved plan was carried through... But considering the cars that gets killed against the one's still running it's only doing harm... At the very best the effects will be nil...

The reason is that you are also "releasing" the harmful effects when you scrap a car, good or bad, it still has components that harm the environoment less in use than when you disassemble it (and when manufacturing new cars)... And considering that perfectly good cars get scrapped that could have done another ten years and still be a lot more eco friendly than the average car on the US roads it's insane... Point in case the Volvo... It is a lot more eco friendly than your average 2 ton pickup or the US version of "a small car"...

If the program scrapped real clunkers it migth actually have done more good for the economy, and environment... But it wouldn't work as good in the statistics for the politicians... The reason being that the one's driving a clunker usually drive that since they can't afford a decent used one or a new car... And giving a rebate bringing down a new car to the level of a decent used one doesn't change that fact and they still can't afford it...

 

This will stimulate the economy just like the "stimulus" package and the banker bailout have made things better. Government programs like these are akin to lifting yourself up by your bootstraps; it ain't gonna happen.

 

I agree that it stimulates the economy in the short term at least (at the sake of the long term).

But why spend extra money to destroy something of value (the used cars)? These cars were registered and insured for the past year, so clearly the majority are in operating condition. They could be resold to others who can't afford a new car even with incentives. Those who'd buy them probably have older, less efficent cars than these.

If the government sold each one of these for an average of $2K each, they'd recover $500,000,000.00, literally half of the money spent bribing everyone else to get new cars. But no, let's just crush them.

THAT would be environmentally friendly AND cost less.

20% of a car's total greenhouse gas emissions are during manufacture. This is assuming it has a 14 year lifespan. If you destroy the car prematurely, you've bumped that number up to 30-40%.

Saving the environment is just a guise to gain votes. Hell, the voters probably didn't read the fine print anyways.

I expect Obama will be beating his chest about how GM sales are doing great with him involved. Let's see what happens when they quit funding the program (if ever ) and there is nearly zero demand for new cars because most everybody who wanted one now has one.

 

YADDAYADDAYADDAyaddayaddayadda....................

Lookit there! Angels dancing on the head of a pin again.

In that there barrel of fish is a red herring. Spoiled in the August heat by now.

I'd care if the issue extended to two wheeled vehicles somehow, but nooooooo, once again the world of motorcycling is ignored by the chest thumpers and flag wavers and talking heads in the self important media.

 

crazy **** ,

 

I think i will need to start another business, "Central Texas Repo".

Alot of the people who have traded in their clunker, were in no position to purchase a new vehicle or the means to provide a down payment before this program. Now they just traded in their clunker that probably had no payment attached to it and now they are looking at a hefty auto payment each month and full coverage insurance to pay. I say in about 5 to 6 months from now, the repo business is gonna be booming!

Yep, that will help the economy.

 

I am sure the car market will look much like the housing market soon enough. Tons of people screaming at the banks about lending them money for something they cant afford.
I read about how one commercial jet in 1 trip from New York to Miami makes more pollution then 100 cars for 100 years. As far as how many cars we have on the road I dont know, but I know there are over 5,000 flights a day. I figure that more than covers all the cars on the road for at least a few years.

Anyway. I know something has to be done to help the economy and I dont claim to be the holy, I have all the answers. However I still dont see how having people trade in thier paid off (at least I hope it is paid off if you are taking 4500 for it) vehicles and trading it in for a new one with a payment.

Ask any financial advisor about how to get your finances straight and it usually starts with "sell the car and buy a used one"

 

Has anybody thought about what will happen to new car sales after this program ends? Sales will no doubt tank for some months to a year, since people are rushing to buy cars now who would have waited up to a year or more without the extra $.

It's kind of like gas station boycotts. Those that don't buy gas on the day of the boycott, will buy gas the day before or the day after....result is that the same amount of gas has been sold at the end of the month.

Also, I heard a car salesman talking on the radio about the condition of some of the cars being traded in. He's seen cars with excessive oil smoke, rod knocks, etc. Cars that otherwise would be worth $500, or less. And WE are paying for this program with our taxes.