Posted on 09/02/2009 9:53:16 AM PDT by wrrock
Mike Jackson, CEO of AutoNation, says ‘Clunkers’ the most successful stimulus program ever, even though his company has not been paid. He said he is not worried about future car sales or the ‘pull forward’ mentality. However, Reuters and the Wall Street Journal both report very slow times at dealerships.
About the only thing we agree with Mr. Jackson on is the fact car prices are going to be higher going forward. (Please do not buy a new or used car until the end of November… unless you have to).
Watch Video: http://www.cardealerreviews.org/?p=117253
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Yea, and don’t we, the taxpayer, have to pay for this crap!
“CEO of AutoNation Says ‘Clunkers’ Most Successful Stimulus Ever (Despite Not Being Paid)”
I wonder what he will say next month when sales are in the crapper.
And we all know that big business is nothing more nor less than the biggest hammer in Fascist workshop.
So can you connect the dots or do you need a map?
let’s see. Stimulus in Reagan’s first term and Bush 43’s first term was tax cuts, and that led to growth of the economy, lower unemployment and tax receipts increases. Let’s see if this leads to similar results.
He didn't believe this would impact future sales because, people with the kinds of cars that qualified only make up about 5% of their normal sales.
Not sure I agree with him about that... maybe, the same people just traded in a different car than they would have otherwise... But, he seemed like pretty decent guy.
didn’t they sell fewer cars than the month before C4C??
Some “success”
I say we boycott AutoNation out of general principles.
My newest car will be five years old in October and yet I am still buying new cars with my taxes, except I can not drive them.
“Thank you Comrade Jackson, for polishing our apple...the whining ingrates will have to wait...maybe forever...slow learners, unlike yourself, Comrade. No? Haha!”
Poor lost cars and trucks they could buy
Part's business lost of people not fixing their old cars.
People will have a heart attack when they get a 1099.
Lets do a follow up in five months to see if they did the years business in one month.
Only in states with high income tax. It's definitely not taxed as federal income.
Follow the money. AutoNation is owed $54 Million in “clunker” funds. I’m not surprised that Jackson is wearing kneepads at this point - if the government fails to pay up, he’ll be wishing that he’d passed on this job offer.
Liberal Economics: Step 1) Government and Unions take control of 2/3 of car industry. Step 2) Government forces tax payers to pay for 1/3 to 1/2 of cost for car purchases. Objective achieved: Wealth redistributed.
Cash for Clunkers was a great idea. It only had a few flaws:
1. It deepened national debt.
2. It grew government, since they had to hire people to process all of the transactions.
3. It destroyed perfectly good cars, throwing billions of dollars of usable assets into the wind.
4. It endangered the wellbeing of car sellers, who may or may not get reimbursed.
5. It sucked tens of thousands of Americans into deeper debt, at a time when they ought to be scrambling to eliminate household bebt.
6. It sucked tens of thousands of Americans into investing in an asset which goes down sharply in value every year, at a time when Americans ought to be investing in stable assets, like precious metals.
7. It reinforces the lie for Americans that bigger government is benign.
8. It will inevitably encumber financers and car companies, when increasingly out-of-work and underfunded buyers will have thousands of cars repossessed in the coming years. This will result in excess inventory of repo’s on lots over the next 48 months, and financers eating a bunch of accounts receiveable.
9. Buyers of new cars are now encumbered with a whopping sales tax charge and annual license renewal taxes, since states charge more taxes for new cars.
10. Buyers of new cars now have significantly higher auto insurance bills than they had formerly.
11. The removal of decent used cars from the market puts a hardship on lower income families, who are the ones who generally buy them. Now, prices are higher for used cars.
12. Following a brief spike in purchasing, demand for new cars will dip even lower than before the C-4-C program began, meaning less income for the automakers.
13. Foreign car makers score bigtime, while the union-laden Government-owned makers get pounded by the competition. See current sales data for Ford/Toyota/Honda/Mazda vs. GM/Chrysler/Fiat.
Other than that, it’s just a marvy idea. Can’t wait for the same set of realities to hit the large appliance market.
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