Cash For Clunkers gets $2B assist in the Senate; C.A.R.S. funded through Labor Day
After a week of uncertainty and a lot of weighing in from all sides, C.A.R.S. (aka Cash For Clunkers) looks set to continue for another month, at least. The Senate confirmed the House's $2 billion funding of the incredibly popular program yesterday in a 60-37 vote, mostly on party lines. President Obama has said he will sign the bill. The money should last through Labor Day, and rumor has it that C.A.R.S. won't be extended again. In fact, one of the bill's strongest supporters, Michigan Senator Carl Levin, said that he wants a specific end date set so that everyone's clear how long they have to get rebates for their clunkers (we can see the "Last Chance!" ads that will run just before that date already). The extension passed "clean," without any of the amendments that had been tacked on. The Auto Alliance has hoped this would be the case, and Alliance CEO Dave McCurdy said he applauded what Congress and the President have done for auto makers and the industry. Both Ford and GM will consider increasing production if the program continues to be popular.
Whether or not car shoppers will continue to be as inspired to rush out and get their $4,500 for a new car is an important question. Since we don't have a crystal ball, let's see what the wisdom of the crowd can tell us. Do you think C.A.R.S. will keep pace for the next $2 billion?
[Source: Detroit News, AP]
PRESS RELEASE:
Alliance CEO Dave McCurdy's Statement on Senate Approval of H.R. 3435
"Cash for clunkers is a new engine for automakers; a tune up for the environment; and a jump start for communities across the country whose economies are dependent on a strong auto industry. We applaud the administration and the Congress for their efforts to ensure that consumers can continue to take advantage of this successful program."
Reader Comments (Page 1 of 2)
KM 8:10AM (8/07/2009)
Ultimately I think the program is relatively small and will likely go strong as long as it's available.
Probably just an issue of what comes first, running out of people who can afford to buy in this economy, running out of qualifying vehicles, or running out of money devoted to the program.
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MikeInNC 8:45AM (8/07/2009)
Money given to benefit tax payers that's borrowed from China and ends up benefiting auto makers and eventually is paid back by...you guessed it...tax payers. Idiocy at its finest.
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polo 2:47PM (8/07/2009)
And? This is how the US economy has operated for the last 20 years. Reagan and Bush were two biggest spenders. Shut up.
Sebastian 3:13PM (8/07/2009)
Polo,
Everything about your comment is fine except for where you told another reader to shut up. Let's keep it friendly.
Tim 8:46AM (8/07/2009)
KM said: "...or running out of money devoted to the program."
Congress is borrowing or printing EVERY DIME. Each $4,500 subsidy costs $6,500 by the time you add administration costs and well over $10,000 with interest.
What will be "stimulated" once the credit runs out... NOTHING!
I'll enjoy the debt while hoping somebody gives me a ride, THEIR new car that I'm helping to pay for AGAINST MY WILL.
The $500 hammer and $1,000 toilet seat live on in Congress. That's progressive!
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stevejust 2:23PM (8/07/2009)
I've spent a lot of time studying Fox News on the Cash for Clunkers issue, and your comments are like a cut & paste job from their website.
Look, the extra $2 billion came from money that was already set aside for clean energy initiatives. Did Fox ever mention that? No. But look, I'll use the conservative Wall Street Journal as a source for that fact: http://online.wsj.com/article/SB124903908261696593.html
$3 billion for cash for clunkers is money way better spent than a single dime spent in Iraq.
Cash for Clunkers is not an environmental panacea. But in an economy where people are scared to spend, and dealers have excess inventory, and plants are idle, this program is a good way to bridge the gap between the excessive consumerism we had in 2006-2007 and the new reality we live in today. So yes, it does create a bit of an artificial demand and there will be a let down when the program runs its course. But that's way better than no program at all, and if you can't see that, you're a moron.
My gf wouldn't have bought a 2010 Prius if it weren't for the Cash for Clunkers program, and she traded in a 1997 4Runner to get the Prius. Would we have prefered an american car? Yes, yes we would have. But there's not a domestic car that can compete with the Prius.
I paid over $75,000 in taxes last year. I was never eligible for any of those Bush tax rebates you sucked down -- you thief. That was straight-up socialism, perpetuated by BU$H.
But hey, if you're willing to send me that money back, then by all means, continue down the path you're going. Otherwise, STFU.
polo 2:51PM (8/07/2009)
Keep on trollin TIM.
"What will be "stimulated" once the credit runs out... NOTHING!"
Good point. Maybe we should make the program permanent.
"I'll enjoy the debt while hoping somebody gives me a ride, THEIR new car that I'm helping to pay for AGAINST MY WILL."
How is it against your will? Your elected officials are authorizing it.....oooh the people you voted for (assuming you're old enough to) lost to the majority will of the public? Too bad, deal with it or leave.
You don't get to decide where your tax dollars go. You get to vote for elected representatives who make that decision. This is the course the majority of the American people want, and if you don't like it, LEAVE.
Tim 3:08PM (8/07/2009)
Progressive hate speech again? It's OK when Progressives do it, right?
You HATE any “free speech” that disagrees with you just like you think everyone else's money IS your money.
You force others to sing praises of the party line or "STFU". If you continue to descent, you attack them PERSONALLY because we don’t really have any logical rebuttal.
How immature. Spending you entire lives nursing on the public tit.
Progressive-Fascism = Muting the opposition to the State Control.
Joseph Goebbels would be proud of you. History repeats!
Tim 3:09PM (8/07/2009)
polo,
I did NOT vote for anyone to take what I have worked for and give it to their friends (or voters) who did NOT earn it.
I ONLY vote FOR those with the honor and integrity to obey their oath of office and the Constitution. I never vote AGAINST someone.
"A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world's greatest civilizations has been 200 years."
From 1776 to 1912 (136 years), the value of the dollar, relative to the Consumer Price Index, increased by 11%. (ZERO public debt)
Then after The Fed’s creation, from 1913 to 2008 (95 years), the value of the dollar, relative to the Consumer Price Index, decreased by 95%.
http://www.kxmb.com/printArticle.asp?ViewPrintable=True&ArticleId=412056
REAL Public Debt Now EXCEEDS $74 TRILLION!
http://www.truthinaccounting.org/news/listing_article.asp?section=451§ion2=451&CatID=4&ArticleSource=372
A nation (of Progressives) ignorant of history is DOOMED to repeat it!
Anti-Tim 3:14PM (8/07/2009)
Sorry Tim, not a progressive. I am tired of loud mouthed bullies attempting to derail conversations with pointless talk about Eco-Fascism and pro-business, egotist or free market ideology. Your posts provide nothing except noise. In fact you do your own points injustice because, and I'm guessing, you've stopped taking your medication. I am Anti-Tim your mirror reflection: here to nullify your idiocy and make sure others know who they are dealing with.
Tim 3:20PM (8/07/2009)
It's nice to have a fan.
lne937s 4:09PM (8/07/2009)
"From 1776 to 1912 (136 years), the value of the dollar, relative to the Consumer Price Index, increased by 11%. (ZERO public debt)"
Tim, you are wrong again, as usual. The deficits during the Civil War as a percentage of the GDP were higher than they are now, running up a 30% of GDP national debt a couple of years.
http://online.wsj.com/article/SB123491373049303821.html
Tim 5:46PM (8/07/2009)
The economy of the United States is the largest national economy in the world. Its gross domestic product (GDP) was estimated as $14.3 trillion in 2008.
http://en.wikipedia.org/wiki/Economy_of_the_United_States
This does NOT include unfunded liabilities or current spending by the Fed and Congress.
The REAL Public Debt Now EXCEEDS $74 TRILLION!
http://www.truthinaccounting.org/news/listing_article.asp?section=451§ion2=451&CatID=4&ArticleSource=372
Washington and the Fed are “cooking the books” why the try to keep afloat by borrowing and spending ourselves into prosperity.
Our current REAL public debt is 5 TIMES GDP. (this is a bigger number than 30%)
This is unsustainable and YOU Sir are wrong!
Joseph Goebbels would be proud of you. History repeats!
Matt 8:58AM (8/07/2009)
Anybody want to wager how bad auto sales are going to be after the CFC program runs out? I'm thinking it will be worse than before the program in an equal and opposite sum as the rise in sales.
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nrb 11:10AM (8/07/2009)
That's part of the problem. Introducing an artificial demand now, creates a downturn later. We saw it just four years ago with the whole employee pricing thing.
The good news for consumers is that if you don't qualify for C4C, just wait a few months after it's over. Incentives will be plentiful. That's not so good for automakers.
FitFan 11:21AM (8/07/2009)
I agree that demand will drop significantly after this program ends, but I think the net result is that a lot more people will have bought cars than if the C4C program never existed.
There must be a group of people who are driving real clunkers and who just want to get into a new, inexpensive car. If you're driving around in a car that has almost no value, the $4500 rebate could represent 30% or 40% of the cost of an entry level car. Not only does that make the payments much more affordable, but it takes care of the down payment that banks want to see before they'll approve loans for some people.
polo 2:58PM (8/07/2009)
This is exactly why automakers NEVER EVER EVER offer rebate or cash back incentive programs.
"That's part of the problem. Introducing an artificial demand now, creates a downturn later."
Actually this program enables people to afford to buy new cars when they otherwise couldn't in most cases. What you suggested is the most absolutely idiotic thing I've heard so far from you rightwing nut cases. If what you said was even remotely true we wouldn't have coupons, temporary discounts, rebates, or any other similar programs because it would have no net gain for businesses. Its amazing seeing what the uneducated think.
Matt 3:24PM (8/07/2009)
polo,
Feel free to stop making personal insults any time now, we get it, republicans are stupid.
As for your comment; this isn't some grocery store coupon. This isn't a dealer incentive, or a deduct from their profit margin, this is a handout, and people react very differently to this than an "employee pricing" event. Not to mention the fact that dealers see huge decreases after stopping those events too, so this will be like a magnified version of stopping those programs. This is Macro-Economics in its simplest form.
ronEbear 9:03AM (8/07/2009)
Silly Americans.
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FitFan 11:14AM (8/07/2009)
Silly Americans? There's a decent list of European countries that started C4C programs before our program started. It's not like we're blazing any trails here.