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Clunker Program Cost $24,000 Per Additional Car?  
User currently offlineLTBEWR From United States of America, joined Jan 2004, 13116 posts, RR: 12
Posted (4 years 10 months 4 weeks 11 hours ago) and read 1565 times:

A study done by and for the car enthusiast and consumer advice site Edmunds.com calculated that the USA's Federal 'Cash for Clunkers' program cost taxpayers $24,000 for each vehicle sold over if the program had not been affect. Their study calculated that only 125,000 additional cars/SUV were sold, in the about 690,000 total sold under the program. This is a link to their press release on their study. http://www.edmunds.com/help/about/press/159446/article.html

I thought for a long time that instead of a 'trade in' program, they just gave $1000-1500 additional incentives for someone to buy a new higher fuel mileage vehicle, preferably one made in the USA or Canada. You could have sold a lot more cars, not screwed up the scarp metal and car markets, still kept some good cars on the road and not skewed the lower end used car markets.

7 replies: All unread, jump to last
 
User currently offlinePPVRA From Brazil, joined Nov 2004, 8964 posts, RR: 39
Reply 1, posted (4 years 10 months 4 weeks 11 hours ago) and read 1550 times:

Here's more proof of the amazing success called CARS:

http://research.stlouisfed.org/fred2...s[1][id]=ALTSALES&s[1][range]=5yrs

Hey, as long as it doesn't last more than four hours, no need to call the doctor. . .

[Edited 2009-10-29 18:56:32]


"If goods do not cross borders, soldiers will" - Frederic Bastiat
User currently offlineKen777 From United States of America, joined Mar 2004, 8278 posts, RR: 8
Reply 2, posted (4 years 10 months 4 weeks 9 hours ago) and read 1525 times:



Quoting PPVRA (Reply 1):
Here's more proof of the amazing success called CARS:

The only short term benefit of that spike is that it cleared out some inventory and got some auto workers back on the job refreshing the low inventories.

Actually that's not a bad thing when you think abut it.

My preference is for "motivations" to purchase cars & trucks that get 20 MPG City and increase the incentive as milage increases.


User currently offlineSuperfly From Thailand, joined May 2000, 39887 posts, RR: 74
Reply 3, posted (4 years 10 months 4 weeks 6 hours ago) and read 1489 times:



Quoting Ken777 (Reply 2):
The only short term benefit of that spike is that it cleared out some inventory and got some auto workers back on the job refreshing the low inventories.

Actually that's not a bad thing when you think abut it.

My preference is for "motivations" to purchase cars & trucks that get 20 MPG City and increase the incentive as milage increases.

Would have been a better idea if there was a 'buy American' clause for this program. Meaning only American brands made in US factories.
Also, the engine parts should have been available to the public who goes to wrecking yeards for parts. I am glad that other parts of traded in cars were available such as door panels, windshields, rear-view mirrors, cassette decks, seats, etc.
The engines didn't need to be destroyed.



Bring back the Concorde
User currently offlineKen777 From United States of America, joined Mar 2004, 8278 posts, RR: 8
Reply 4, posted (4 years 10 months 3 weeks 6 days 11 hours ago) and read 1414 times:



Quoting Superfly (Reply 3):
Would have been a better idea if there was a 'buy American' clause for this program. Meaning only American brands made in US factories.

Percent of US content is a good idea if you aren't stopped by the various treaties. A lot of "foreign cars & trucks" are built in the US so you would need to use the US content approach.

Quoting Superfly (Reply 3):
The engines didn't need to be destroyed.

I believe that one important factor was to eliminate engines with poor milage. If you look long term (which I still do at my age) there is a financial benefit to consumers if the fuel economy of the "average car or truck" is significantly reduces, simply because it brings down prices. I assume price & demand concepts will continue to some degree in the future. A great example for me was the other day when I took the family to Cracker Barrel for dinner - at least 80% of the parking lot was full of big SUVs. Thought there might have been a Gas Hog Convention going on inside.

That's why I like the idea of 20 MPG minimum, even for trucks, with the motivations increasing as fuel economy increases.


User currently offlineSCCutler From United States of America, joined Jan 2000, 5521 posts, RR: 28
Reply 5, posted (4 years 10 months 3 weeks 6 days 7 hours ago) and read 1393 times:

"brings down prices"?

Have you shopped used cars lately?

This incomprehensibly bone-headed program has priced many thousands of people out of owning a decent used car, paradoxically ensuring that more older, poorer-conditioned vehicles remain on the road than would have been the case otherwise.

It was a morally reprehensible process.



...three miles from BRONS, clear for the ILS one five approach...
User currently offlineFlighty From United States of America, joined Apr 2007, 8544 posts, RR: 2
Reply 6, posted (4 years 10 months 3 weeks 6 days 7 hours ago) and read 1389 times:



Quoting Ken777 (Reply 2):
and got some auto workers back on the job refreshing the low inventories.

.... for about a month or two ....

Quoting SCCutler (Reply 5):
It was a morally reprehensible process.

I agree. It was okay as an "emergency" thing.... but the government should not be buying new Toyotas for people. That's just not why we pay taxes.

Better a tax refund than any of the above, IMO. There are much cleaner ways to help people than Clunkers.


User currently offlineSuperfly From Thailand, joined May 2000, 39887 posts, RR: 74
Reply 7, posted (4 years 10 months 3 weeks 6 days 3 hours ago) and read 1360 times:



Quoting Ken777 (Reply 4):
I believe that one important factor was to eliminate engines with poor milage.

Seems like American car companies are damned if they do and damned if they don't.
If a 25 year old engine works fine then I see no point in destroying it. Isn't long lasting products what consumers want?
If American cars were made with the reliability of French and Italian cars, the engines would self destruct in a relatively short life span.

Quoting Ken777 (Reply 4):
I took the family to Cracker Barrel for dinner - at least 80% of the parking lot was full of big SUVs.

That is their choice.

Quoting Flighty (Reply 6):
the government should not be buying new Toyotas for people.

 checkmark 
Amen!



Bring back the Concorde
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