ltbewr
Topic Author
Posts: 12881
Joined: Thu Jan 29, 2004 1:24 pm

Clunker Program Cost $24,000 Per Additional Car?

Fri Oct 30, 2009 1:42 am

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.
 
PPVRA
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Joined: Fri Nov 12, 2004 7:48 am

RE: Clunker Program Cost $24,000 Per Additional Car?

Fri Oct 30, 2009 1:55 am

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
 
Ken777
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Joined: Thu Mar 11, 2004 5:39 am

RE: Clunker Program Cost $24,000 Per Additional Car?

Fri Oct 30, 2009 3:29 am



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.
 
Superfly
Posts: 37705
Joined: Thu May 11, 2000 8:01 am

RE: Clunker Program Cost $24,000 Per Additional Car?

Fri Oct 30, 2009 6:37 am



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
 
Ken777
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Joined: Thu Mar 11, 2004 5:39 am

RE: Clunker Program Cost $24,000 Per Additional Car?

Sat Oct 31, 2009 1:45 am



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.
 
sccutler
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Joined: Thu Jan 27, 2000 12:16 pm

RE: Clunker Program Cost $24,000 Per Additional Car?

Sat Oct 31, 2009 5:29 am

"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...
 
Flighty
Posts: 8688
Joined: Thu Apr 05, 2007 3:07 am

RE: Clunker Program Cost $24,000 Per Additional Car?

Sat Oct 31, 2009 5:48 am



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.
 
Superfly
Posts: 37705
Joined: Thu May 11, 2000 8:01 am

RE: Clunker Program Cost $24,000 Per Additional Car?

Sat Oct 31, 2009 9:23 am



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.

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Amen!
Bring back the Concorde

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