The Obama administration's $3 billion "cash for clunkers" program should be renamed "cash for gas-guzzling pickup trucks," according to an Associated Press analysis of the data.
AP reports that for 8,200 deals — the most common — buyers traded in their old Ford 150 pickups for new Ford 150 pickups. Fuel economy for the new trucks is just 1 to 3 mpg better than the clunkers — less than 20 mpg.
Glad to see that the "Cash for Clunkers" program - that cost the taxpayers billion$ of our tax dollar$ - achieved its stated goal of getting gas-guzzlers off the streets. Unfortunately, they forgot to tell us that those gas guzzlers were simply replaced with new gas guzzlers. Gee, I wonder why that little piece of information was omitted in the glowing reviews of the program?
I'm having a hard time thinking of a program that is more descriptive of the whole 0bama administration than "Cash for Clunkers". This program:
- Cost taxpayers billions
- Achieved dubious results
- Had hidden costs that didn't surface until after people had used the program
- Didn't help American manufacturers
- Negligible positive impact on the environment
So, it completely and utterly failed to help the environment or boost American auto sales, and cost taxpayers billions of dollars. It was an empty, symbolic gesture that will, in the long run, hurt far more than it helps. Folks are going to discover that the $4,500 rebate needs to be disclosed as income on their taxes and have an unpleasant surprise come April 15, 2010. Used car prices have skyrocketed, with supply severely diminished because the "Clunkers" were destroyed under the Cash for Clunkers program.
I believe the exact term is "All sizzle, no steak" - what an apt analogy...
That is all.
8 comments:
Hopenchange folks, hopenchange. Just as in the case of the Nobel prize, the left is more impressed by intentions than results.
I was considering upgrading from the ram 1500 to a 2500 diesel, myself. I didn't know that the rebate was reportable income, however. Glad I stayed out.
Not only is the payment subject to income tax (on both the federal and state level), but it doesn't qualify as a reduced purchase price on the vehicle (i.e. it is subject to sales tax). Further, and this is the biggest part of the scam, dealers didn't generally cut the list price of the vehicles at all - so consumers got rid of a used car that probably worked just fine, got a new car payment, have to pay income tax and sales tax on the discount, and then got ripped off by the dealer.
All to pull production forward; and, as you said, raise used car prices (a euphamism for "fucked the poor - again").
If you liked C4C, you'll absolutely be enfatuated with gov't-run healthcare. That'll cost more, increase wait times and kill you sooner.
Fucking stupid liberal morons - they're going to turn the whole country into Commiefornia before long.
Since the C4C program required that you purchase a car on the dealers lot, it really didn't do much to production levels, it reduced inventory levels that dealers and manufactures finace. All it really did was shuffle sales around.
When the dealers run rebate programs they are at least smart enough to do it in Sept/October to clear the lots before the new models.
Every dealer knew it would steal sales from August, Sept & Oct. ( and they planned accordingly )
Well there is SOME good news. At least people used it to buy F150s instead Prius'. I thought it was pretty much all going to Prii and Corolli.
Cracks me up. It really does. D'you also remember the stories a month or so ago about how Honda and Toyota got more sales out of C4C than domestic companies did?
I read your blog pretty much every day and appreciate your pithy comments, however you really did drop the ball on this one. The nonsense about reported income and income tax is just an urban myth. Go to www.cars.gov to see the real story. Also in order to qualify for the $4500 rebate the new vehicle must give an improvement of more than 8mpg over the trade in. For a $3500 rebate the difference has to be between 4 and 8 mpg. I traded in an ancient minivan for a new Pontiac (yes I know, Pontiac) Solstice and the program worked just fine.
That is all.
Yup, My local bone yard got their allotment of C4C pickups, sans motors. The pickins' have been wonderful. Seeing that my motor is in fine shape, I got a fresh infusion of parts to paw through. All the little plastic stuff (trim) that breaks early on, that you usually never replace because it's the usually first stuff to go in the bone yard, and the dealer wants too much for it to bother with. For $20, I should snag an extra CD player, just in case...
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