Bailout Watch 554: Cash For Clunkers Passes House
The House of Representatives has passed Rep Betty Sutton’s $4 billion scrappage scheme [download full text here], reports CNN Money. The bill now goes to the Senate. Under Sutton’s bill, clunkers with a combined 18 miles per gallon rating or worse would be eligible for a scrappage rebate. Purchasing new vehicle which exceeds its replacement’s rating by four miles per gallon would earn a $3,500 rebate. Improve the combined EPA average by 10 mpg and snag $4,500. Offer good for one year. Or until we tear through $4 billion in a wholesome, American display of redemptive consumption. I’m sorry, I mean “shore up millions of jobs and stimulate local economies . . . improve our environment and reduce our dependence on foreign oil. The [Consumer Assistance to Recycle and Save] act demonstrates that we can free ourselves from the false argument of either you are for the environment or you are for jobs. You can do both, you must do both.” As the bill’s author modestly puts it.
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I agree with that. In fact, I was trying to defend the fact that this really wouldn't waste much in overall materials. You do have to include the energy used for constructing the vehicle which, for now, seems to represent 14% of the overall energy the vehicle will use in it's lifetime. But even so, the economics on paper seem to be good. It's what happens once the government handles it which worries me. I would entrust it to a non-profit that already has a very sophisticated auditing system in place.
stupid stupid idea. i bought a fuel efficient car 10 years ago, i am now being penelized. i never buy new cars. Never. I do not want to spend the money. This will end up benefiting people with newish cars who can afford new ones with no help. It will have no affect on the army of ratty old junkers driven by poor folks. Stupid insulting idea. I cannot beleive its actually being bantered.
I am a New Car Salesman (yes on of those guys) here in San Diego, Ca. We had a good month at the dealership in July and August. Took in close to 100 C4C trades so far. ONLY problem is our dealership has YET tot be paid for any of them. We have had to hire three temps JUST to do the paper work. We have about 70 transactions in "review", three have been declined AFTER we got the Auth from their computer. As a sales rep I will not get paid on the 13 sales I have made till the Government pays the Dealership and the deals have cleared. I am being assured that this SHOULD be by the end of 2009. I am hoping my utility companies and mortgage company understand that I will be able to pay my bills once the Government pays the Dealership so they can pay me. I am sure the Utility Companies will be compassionate and allow me to run my bills up till no later than the end of 2009. This program has been a DISASTER for us. The public doesn't understand what qualifies as a clunker, they DON'T want to have to buy the cars that qualify for the program and the banks are declining loan applications on these deals as fast as we submit them. We don't dare destroy the cars right now, because if the Government will not fund us we have no way to wholesale or auction the vehicles to try and recoup the dealerships investment. ALL the sales reps are upset that they are not getting paid in a timely manner and the customers are really going to be pissed when they have to return the cars because their loan got declined or the Government FAILS to pay the dealerships. Give this 60 days and the Dealers LAW SUITS will begin!