It Never Ends Update: Cash For Clunkers sales total at least 180,000, average increase is 6.8 mpg
Another day, another Cash For Clunkers news digest: First off, some numbers. The government now says that 180,000 cars have been sold through C.A.R.S., enough to account for $775.2 million of the original plan's $1 billion in funding. Since not all of the vehicles sold have yet been confirmed by the government, fears that the money will be used up appear valid. The new numbers show that the Ford Focus' reign as top seller was short-lived; the Toyota Corolla is the new number one. On average, the government says, the average mpg for vehicles clunked was 18.5 mpg while the average for the cars sold was 25.3 mpg (remember that trucks don't fall under the same 18 mpg limit that passenger vehicles do).
Speaking of limits, it's safe to assume that a lot of people would like to trade in their old cars but can't because they have an official rating above 18 mpg. To offer these drivers a little something – and, naturally, to boost sales – a collection of auto dealers have come together to offer the "Auto Stimulus Plan," which can give buyers up to $4,500 on any vehicle from 2006 or earlier that
To see what your vehicle might be worth under this plan, check out the ASP site and read the press release after the jump.can be used towards the purchase of a pre-owned vehicle and a lease of any term. The specific Automotive Stimulus Plan incentives vary by the make and model of the vehicle you select and are offered in different forms in every state due to automotive advertising rules and regulations.
As for funding the official C.A.R.S. program beyond this minute, the Senate will vote on the extra $2 billion later today. The Auto Alliance is encouraging Senators to vote for "clean passage" (i.e., without any amendments) of the bill. See their statement after the break.
A few other tidbits: C.A.R.S. is boosting the number of new clean diesel cars on the road, says Biodiesel Magazine. Apparently, BMW's trick is working. Another side benefit: C4C is improving the overall safety of the vehicles on the road because a lot of rides with full-powered airbags and/or a tendency be involved in single-vehicle rollover accidents have now been disabled. Oh, and that 18 mpg limit that we heard charities were insistent on in order to keep vehicle donations coming their way? It might have been a good idea from their end, but the well is nonetheless running dry.
[Sources: Reuters, Fox, Automotive News (subs req'd) | Image: Kevork Djansezian/Getty]
PRESS RELEASE:
Top U.S. Dealers Launch Auto Stimulus Plan To Help Consumers Left Behind By Government's Cash For Clunkers Program: www.AutoStimulusPlan.com
NEW YORK, Aug. 5 /PRNewswire-USNewswire/ -- Www.AutoStimulusPlan.com launches today. Some of the largest automotive retailers in the country are launching today a privately funded stimulus program to provide up to $4500 in additional incentives for consumers to making it easier for them to get a newer more fuel efficient vehicle. The dealer funded Automotive Stimulus Plan was designed to complement the government's program and to compensate for some of the gaps that don't allow consumers to purchase pre-owned vehicles or chose a short term lease. Originally expected to launch on August 14th, the Plan's launch was pushed forward to today due to the recent developments with Cash For Clunkers."The government program has been fantastic for business but some of our customers have been disappointed because the program's rules left them behind," said Scott Gruwell from Courtesy Chevrolet, one of GM's largest dealers and one of the retailers participating in the Auto Stimulus Plan. "Letting consumers lease a new vehicle or buy a pre-owned vehicle makes it affordable for a lot of people who could not participate otherwise."
The stimulus program was slated to start on August 14th, 2009 but participating retailers decided to launch the program this week because of the instability of the governments program. "We have invested hundreds of thousands of dollars to attract consumers to the dealership and we don't know if the government will have the money to fund the program," said Brian Benstock from Paragon Auto Group, one of the participating dealers in New York City. "Now we are prepared to help our customers even if the government program runs out of money. Our motto is 'no customer left behind.'"
The Automotive Stimulus Plan gives consumers up to $4500 in incentives towards the purchase or lease of a new or pre-owned vehicle. The program promises fewer requirements, easier paperwork and no required down payment if the consumer qualifies. "If the government's program gets more funding it will help a lot but there are still consumers who can't afford it and the Auto Stimulus plan is designed to help them," said Rick Case, owner of Rick Case Automotive Group in Florida, Georgia and Ohio. "Consumers will pay less per year to drive a newer car because the payments are so low and the gas and repair savings are so high."
The Automotive Stimulus Plan is a private sector program funded by retailers to provide incentives to consumers that will help the economy and the environment at the same time. To qualify for an incentive, a consumer must select a new or pre-owned vehicle that gets two mpg better mpg than their current vehicle, which is the same requirement the government program has for SUV's, but this applies to all vehicles under the dealer's plan.
If a consumer does not have a trade, they can participate in the program if they select a vehicle with two mpg better than the government's mpg requirement of 17 mpg. "The mpg requirements are lower because our primary goal is to help consumers that don't qualify for the government's program and to stimulate the economy through improved sales, jobs and spending," said Gruwell. "As a result, the environmental benefits will not be as big as the government program but it will help more customers purchase more fuel efficient vehicles."
"We have customers who measure their vehicles mpg weekly and they get 12 mpg but the government's calculator says they get 19 mpg so they don't qualify. Our program makes it easier for them get a more fuel efficient vehicle by not having a mpg requirement for their current vehicle," said Benstock. "Under our stimulus program a customer can get a new Accord for five dollars a day which means they can drive a car for practically free when you deduct the gas savings."
The Automotive Stimulus Plan incentives vary by state and the make and model of the vehicle they select. Consumers can learn more about the program and begin connecting with participating retailers by visiting: www.AutoStimulusPlan.com.
Automotive Stimulus Program Requirements:
1. Current vehicle is a 2006 or older
2. Current vehicle is operable
3. Current vehicle has been owned for a minimum of six months
4. Current vehicle has been registered for a minimum of six months
5. The replacement vehicle has to be more fuel efficient by a minimum of
two mpg
6. Incentives vary based on current vehicle and desired vehicle (visit
www.AutoStimulusPlan.com for details)
7. Incentives vary by State, Make and Model. Incentives vary in some
states due to state laws that regulate to automotive advertising and
promotion.
The Auto Stimulus Plan will end on November 1st and will continue if the government's program expires before that date.
Participating dealers are eager to get the stimulus plan started ahead of schedule because of the recent turbulence with the government program. "We intended for our Stimulus Plan to compliment the government's program but now it may have to take its place when the government funds run out," said Vince Sheehy from Sheehy Automotive Group in Washington DC, Virginia, Maryland and Baltimore, one of the participating dealers.
The organization informs consumers that they should be patient if they cannot get through to the website this week, as the program is being launched and traffic levels may be high. When the governments program went live they experienced difficulties with high traffic volumes that affected their servers and the AutoStimulusPlan.com website may experience similar issues. Consumers are advised to visit at a later time if the site is not functioning properly.
About www.AutoStimulusPlan.com
Www.AutoStimulusPlan.com is funded and promoted by some of the largest automotive retailers in the country. Participating dealers are domestic and import licensed new car dealers who have agreed to provide additional incentives for consumers to get a newer more fuel efficient vehicle. Www.AutoStimulusPlan.com website and communication campaign was built by Level 5, an automotive marketing and consulting firm that specializes in creating and implementing integrated programs for Manufacturers, Associations and Retailers. This stimulus plan is a private program and is not affiliated with the government program. For more information about the governments program visit www.Cars.gov.
LETTER FROM AUTO ALLIANCE PRESIDENT & CEO DAVE MCCURDY:
August 6, 2009
Dear Senator:
Automakers strongly urge the Senate to pass H.R. 3435 without amendment to ensure that the highly successful "Cash for Clunkers" program can continue, without interruption through August. Cash for Clunkers benefits have spread well beyond consumers and the auto industry. The program has spurred manufacturing and provided a much needed boost to cities and communities throughout the country. Scrappage facilities and steel producers alike are seeing an uptick in business. Even charitable organizations expect to see an increase in vehicle donations.
There is no question that Cash for Clunkers has exceeded expectations. Fully funded, and at its current pace, the program will result in a:
* more than 2 million metric ton reduction in greenhouse gas emissions,
* more than a 215 million gallon gasoline savings;
* an average annual savings at the pump of $800 per vehicle.
While several of the amendments may have merit, due to the House having adjourned, and the depletion of the initial $1 billion allocation, passage of any them would shut down the program. For that reason we urge you to oppose all amendments and support clean passage of the H.R. 3435.
Dave McCurdy
President & CEO
Alliance of Automobile Manufacturers
Reader Comments (Page 1 of 2)
Rick 3:07PM (8/06/2009)
there must be ways to scam this plan - like you could go buy an old rusty pick up thats been sitting in some backyard for for $200. and cash it in for the $4500. - I wonder if stuff like that is going on.
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FitFan 3:23PM (8/06/2009)
There might be ways to scam this plan, but not with the approach that you described. In order to qualify the vehicle must have been registered and insured by the current owner for at least one year.
I'm sure there are some people who lucked out and bought a POS 18 months ago and are now benefitting from this plan, but getting lucky and scamming the system are two different things.
guyledouche 3:26PM (8/06/2009)
Rick,
There are rules to negate ones ability to do such things. For instance, in the situation you described, said individual would not be eligible due to the fact that he/she has only owned the care for a couple days. The specific rule for this situation states (I believe) that the owner of the vehicle must have owned the vehicle for at least one year prior to trading it in. They also must show proof of this and that proof must be presented to the Govt in order for the dealership to get their money.
Dave 3:51PM (8/06/2009)
The way I figure it-
80% of vehicles being traded in are trucks and SUVs.
So a two vehicle family with a truck/SUV and a car trades in the the truck/SUV for a car this year under CARS to cash in on the $4500 credit.
And next year, they'll be trading in their old car for a new truck/SUV.
Because they like having a car for commuting. And an SUV for soccer mom duty or a pickup for Home Depot and dump runs.
So, watch for a spike in truck/SUV sales next year.
Tim 4:08PM (8/06/2009)
What Cash-for-Clunkers does for those who can actually qualify for a new car loan it that it pays people to destroy assets that they already own, that are fully paid for and where there is no debt.
We’re going to destroy that asset, a working car so that we can encourage Americans to take on additional debt and to now have car payments to pay for a car he didn’t NEED and that he could not afford and we’re going to FORCE people who did NOT get the car to pay for it.
More public debt, more private debt, more profit for the car companies, more profit for the banks who received bailouts and political fodder for the progressive redistributionists who really don’t care if there are no cheap used cars or cheap used parts that the poor can afford. The progressive-fascists win votes from those they put on welfare!
Meanwhile, the mean-spirited Progressive-Fascists such as Polo and Anti-Tim fight tooth and nail to kill any “free” speech of decent with personal attacks and misinformation. Paul Joseph Goebbels would be so proud!
Since "Progressives" don't know history, Here's a link:
http://en.wikipedia.org/wiki/Joseph_Goebbels
Anti-Tim 4:18PM (8/06/2009)
****Warning**** Troll Alert! Tiny Tim the Troll comments should be (and can be) easily ignored. Tim is a mildly retarded, ill-informed, pseudo-Libertarian (though that is an insult to Liberarians) who suffers from serious delusions, most frequently related to econmics and fascism.
Tiny Tim thinks that the volume of his posts (over 2200) since 2006 will make up for his lack of anything useful and relavent to say. You may simply insert any of the following as substitutions for Tiny Tim's comments:
- Me think free market good
- Me think Progressive NeoCons/Democrat/Socialist/Progressive/Liberal bad
- Me think government bad
- Me think anyone who no like what I say is fascist moron
- Me no like Polocks
- Me no like unicorns farting money
To Progressives from Tim.....I stupid, this is true.
Rick 4:29PM (8/06/2009)
Tim makes good points about wealth destruction and debt. We are addicted to debt. But we can quit anytime - no really - anytime at all - We can quit it anytime we want - just not now.
Anti-Tim 4:41PM (8/06/2009)
Sorry Rick, Tim makes no good points only muddled ramblings on fascists, progressives, unicorns.
Tim 5:09PM (8/06/2009)
Anti-Tim’ progressive hate speech again!
Anti-Tim is the typical Progressive-fascist who believes that those who disagree, those who want personal freedom, personal responsibility or don’t need a “big brother” is a “troll”.
Sieg Heil Progressive-Fascism! All Hail the all powerful all knowing State!!!
May others take care of us since we can’t fend for ourselves physically, mentally or emotionally.
To the mean-spirited Progressives… personal attack is fair and good because the only weapon they have is to silence any opposition.
Debate is NOT allowed in Progressive-Fascism! Only condemnation and hatred of freedom and responsibility.
Progressive-Fascism is why the American experiment is now failing!
Anti-Tim 5:32PM (8/06/2009)
I don't hate you or your speech, I love you. I don't wish for you to be silent, I just wish you had something relevant to say instead of rambling on and on about fascist this or progressive that. I welcome debate, not gibberish about big brother and freedoms. All the while personally attacking those who disagree with you, here are some examples:
" Anti-Tim aka Polo(ck)" not nice calling someone a Pollock.
"YOU sir, are a failure!" Judge not lest ye be judged.
"You are clueless aren't you" provide the clues!
"Progressives are deaf, dumb, blind AND stupid!" That's just mean!
and your favorite tag line....
"To the retard Progressives… this is fair, this is good." seems pretty personal
Don't you hate it when own words come back to haunt you?
Tim 6:51PM (8/06/2009)
OK Anti-Tim,
You are willing to debate? Let's start simple:
Theft is bad. Yes or No
meme 7:51PM (8/06/2009)
I'd recommend before anyone answers that you define terms.
Tim: Are you using the dictionary definition of theft or making up your own to suit your argument? From dictionary.com:
Theft: "The act of stealing; the *wrongful* taking and carrying away of the personal goods or property of another; larceny."
Stealing: "Given to or characterized by theft."
Larceny: "The *wrongful* taking and carrying away of the personal goods of another from his or her possession with intent to convert them to the taker's own use."
Note that the definitions include the word "wrongful". It's not just taking another person's property; it's the *wrongful* taking of another person's property. For example, repo men don't commit theft, because what they're doing is the *rightful* taking of another's property.
So, back to the beginning: are you using the dictionary definition, or one made up to suit your argument?
Anti-Tim 9:00PM (8/06/2009)
First all thanks meme for heading that one off. Secondly, I'd like to say how proud I am of Tim for not mentioning fascists, Nazis, or progressives in a post! Good boy! pat pat. Wow! Progress!
Finally, I might as well paste Tim's mindless answer from a previous post: " My parents helped me see that it is WRONG to STEAL. It is wrong to steal from you neighbors and it is wrong to make you children pay for your thievery.If you steal something and then give it away you are STILL a thief."
And yes theft is bad Tiny Tim. But theft is not borrowing nor lending. Theft implies what was stolen will not be returned. For example, George Bush has borrowed 5 Trillion from my unborn grandchildren. That's not stealing that's outrageous fiscally irresponsibility and plain old greed. The current administration is attempting to kick-start an economy that was horribly abused by the previous one, in an attempt to, possibly, pay off some of that debt.
Tim 9:16PM (8/06/2009)
Meme, sorry this is long but it’s a very short civics 101 course. You and Anti-Tim seem to need it.
So, by YOUR definition theft depends on being “wrongful”?
Let’s test that and form a little Democracy. We'll lock 4 of us in a room. 3 men and you. We'll decided to vote on if we would have our way with you and then "steal" your life. Sorry, the 3 men voted Aye and you voted HELL NO.
We can now legally do as we please. That's democracy! How can the majority will be “wrongful”? It's not theft, it's Democracy.
A "democracy" is MOB RULE. It is Socialism, Progressivism and sometimes even the Fascist Tyranny of the majority. In a Democracy, there are no such things as INalienable Rights, only privileges granted by the majority. One only needs to control the media and education to control the majority. (Gov't schools and Corporate Media) Ask yourself; "where is all the money flowing?" Answer: gov't and giant corporations.
Now if you had RIGHTS that were INalienable (not unalienable, read the Constitution) we could not take from you what was NOT yours to give (life, liberty and the PERSUIT of happiness spelled out more clearly in the 1st 10 Amendments) even with a majority vote. But it’s a 2 edged sward… you can’t have rights/freedom without being responsible for YOURSELF.
Our founders studied history. Not the revisionist crap spoon fed to us in today’s Progressive gov’t schools. They know that we MUST have (or had) a Representative Republican form of gov’t with elected representative who could NOT vote to take away your INalienable rights for ANY of us to be truly free to pursue happiness.
Progressives believe in the thing Bill Clinton said “Well, that depends on what Is, Is”
Progressives (Democrat & Republican) believe that Gov’t might makes right. They believe in short term gain without care about the long term pain. They can only see to the next election.
Progressives like Bush and Obama think the President's primary job is to keep us safe. WRONG! Their job is to keep us FREE!
Stealing from someone against their will is WRONGFUL! (Charity is good)
Redistribution is WRONGFUL! (Giving what you own is good)
Putting people in debt is WRONGFUL! (Paying for what you take is good)
Debasing our fiat currency is WRONGFUL! (Sound commodity based money is good)
Rewarding the failures with money taken from the successful is WRONGFUL! (helping people learn from their failures is good, so is forgiveness and understanding)
The road to hell is paved with good intentions which have unintended consequences.
Neither you nor Congress are gods. Sorry to disappoint you.
Anti-Tim 11:33AM (8/07/2009)
Wow Tiny Tim. I have really underestimated the depth of your insanity. Are you calling for the end of government? Are you suggesting revolution? What is it you are trying to say?
lne937s 6:50PM (8/06/2009)
It should be 15.8 and 25.4....
18.5 mpg is more that legally allowed.
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lne937s 3:29PM (8/06/2009)
http://www.time.com/time/health/article/0,8599,1914602,00.html?xid=rss-topstories-cnnpartner
"The clunkers averaged 15.8 m.p.g., compared with 25.4 m.p.g. for the new vehicles purchased, for an average fuel-economy increase of 61%"
Or a 9.6 mpg improvement
FitFan 3:25PM (8/06/2009)
I think this is good news. I wish they had set higher MPG standards for the new vehicles, but even under this plan those 180,000 cars will be burning 32 million fewer gallons of gas per year.
This is assuming the average of 12,000 miles per year per vehicle.
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GK 3:51PM (8/06/2009)
For all its flaws, you can't argue with the mpg gains so far thanks to C4C. I think even after burning through the next 2B cash infusion, we'll see further iterations of C4C down the road, probably incorporating even better guidelines (ie vouchers based on total MPG gain etc.) This is only the first step, but it's a good start.
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fnc 5:30PM (8/06/2009)
I think One-Note-Tim makes some good points about wealth redistribution.
But considering our country sends a huge sum of money overseas EVERY SINGLE DAY buying oil, getting a lot of people inside our borders into more fuel efficient cars means in the future that more American dollars are spent on things -besides- foreign oil -every time- they put gas into the car. It's arguable that C4C was the best way to achieve this goal (tax breaks for buying the most fuel efficient cars might have been better), the -effects- of Americans buying less oil are very real. More American dollars spent inside America AND less overall demand for oil (which keeps the price lower). At least the government has its eyes on energy security with this program, which is more than can be said for the last administration.
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