Five Reasons "Cash for Clunkers" is a Joke

Yahoo autos ^ | 7/6/2009 | Steve Siler

[GVnana]

With news that Congress has passed its ballyhooed $1 billion “Cash for Clunkers” bill, we feel compelled to voice our skepticism about the program. Here’s the bill in a nutshell:

Buyers of new vehicles between July 1 and November 1 will be given a voucher for $3500 if they forfeit a post-1984 car or truck that has been registered for at least one year and has a combined fuel economy rating at least 4 mpg lower than their new vehicle. The voucher grows to $4500 if the increase in fuel economy is 10 mpg or higher. The old car or truck is then crushed and recycled.

Here are five reasons we don’t think this program is worth the time it took to draft it, let alone a billion dollars:

[GVnana]

On the bright side, the cost to taxpayers will be minimal when no one actually participates.

[Kleon]

This is the first I’ve heard of this. We’ve been meaning to get rid of our 1990 Honda and get a new car for years. So I can get $4,500 credit to a new car purchase? Um, yes please.

[madameguinot]

Watch for defaults on no money down auto loans and/or a more vibrant street drug economy and/or increased HDTV sales or anything else that ‘I gotta have...right NOW!’

[jakerobins]

The number 1 reason?? It was proposed by Democrats ......

[GVnana]

As long as you’re feeding the newly-minted United States Government Auto Workers...

[FoxInSocks]

We’ve been meaning to get rid of our 1990 Honda and get a new car for years.

I think the "trade-in" auto must be rated less than 24 mpg.

[FoxInSocks]

I think the "trade-in" auto must be rated less than 24 mpg.

Oops. Got my numbers mixed up. The new vehicle must be rated 22 mpg or better.

If 22 mpg is an improvement of at least 10 mpg, you get $4,500.

If 22 mpg is an improvement of at least 4 mpg, you get $3,500.

Will a 1990 Honda be rated at 12 or 18 mpg? I doubt it.

[Kleon]

Oops. Got my numbers mixed up. The new vehicle must be rated 22 mpg or better. If 22 mpg is an improvement of at least 10 mpg, you get $4,500. If 22 mpg is an improvement of at least 4 mpg, you get $3,500. Will a 1990 Honda be rated at 12 or 18 mpg? I doubt it.

But what if the new car is higher than 22 mpg?

[eyedigress]

My 92 is only about 25. I guess I’ll keep the old dog

[HereInTheHeartland]

“This is the first I’ve heard of this. We’ve been meaning to get rid of our 1990 Honda and get a new car for years. So I can get $4,500 credit to a new car purchase? Um, yes please.”

There are naturally income limits on this I believe. Socialism must be a part of any stimulus action.

[whodathunkit]

Freecheesemobiles for all!!!

[Kleon]

There are naturally income limits on this I believe. Socialism must be a part of any stimulus action.

What are the income limits? I didn't see any in the article.

[GVnana]

Congratulations, you get to buy the Pelosi!

[HereInTheHeartland]

“What are the income limits? I didn’t see any in the article. “

I didn’t read the article, but at one time the bill did contain income limits to get the cash.
I just did a search and it looks like there are no income limits any more; I stand corrected.

http://www.cashforclunkersfacts.com/bill/cash-for-clunkers-rules

[Florida native]

As long as you’re feeding the newly-minted United States Government Auto Workers...

I'd rather be First On Race Day!

[FoxInSocks]

But what if the new car is higher than 22 mpg?

Hmmm . . . good question. The language I saw just mentioned a difference of 4 or 10 mpg. Thanks for pointing that out. :-)

If the old car gets 25 mpg, then I guess you can get $4,500 if the new car gets 35 or better.

[IMTOFT]

“Congratulations, you get to buy the Pelosi!”

The problem with those things is they are ugly and they only turn to the left...

[mo]

Now ....they WILL pay “cash for clunkers”...even more than for school choice vouchers for the children...I hope some Republican with stones beats them around the ears with a wet fish ...over and over...from now until 2010 elections....

[Miss Behave]

MANY Obama voters/supporters/sycophants are large, heavy people who drive older land yachts because that's all they can fit into. It's just a fact.

They do not WANT smaller cars. They cannot FIT into smaller cars.

Zero will tell them: "Well, then you just can't drive or ride in cars anymore. Take the BUS."

[wendy1946]

The idea does not strike me as totally ridiculous. The cars which have been made for the last 20 years or so, if maintained properly, simply do not pollute worth worrying about. Pollution is probably now something like a 95 - 5 kind of thing in which 95 percent of the pollution is being caused by 5% of the vehicles.

On the East Coast at least when you see somebody driving a 30 year old car you know he's a student or an immigrant; in California more often than not it's millionaires who don't grasp the difference between classic cars and old junk.