Cash for clunkers?

[happygirl]

Hi. Has anyone heard about a bill called Cash for clunkers? From what I understand, if it's passed into law you can turn certain old vehicles (not older than 25 years) in when buying a new vehicle and will receive a discount/incentive of up to 4500$.

I'm sure there will be limitations and there's got to be good and bad to this idea, but I had a hard time understanding it all.

Can anyone explain it in simpler terms? Thanks!

[red92s]

Originally Posted by happygirl

Can anyone explain it in simpler terms? Thanks!

Simple terms:

Now that Obama bought GM and Chrysler using taxpayer dollars, he has to incentivize the purchase of their products to make it seems like they were wise investments.

If it was really about getting more fuel efficient cars on the road, you'd be able to buy a high MPG USED vehicle also. But, since sales of used vehicles won't artificially inflate the sales stats of American cars, you can't. What is "green" about consuming more raw materials, energy, and labor to build new cars that get 25 MPG when there are millions of used cars out there that already do?

The program also stands in direct contradiction to the "financial responsibility and restraint" doctrine he has been preaching in his prime time press conferences. How do you tell people that "unbridled consumerism" is bad, but also encourage them to all go buy new cars? Why was it so essential that sales prices of homes be sheltered and protected and not allowed to decline, but sales prices of used cars should be allowed to plummet by offering incentives to buy new cars instead?

[shultice24]

@ red92s-

A picture-perfect example of our "democracy" serving the interests of their own special interests, and not the consent of the governed.

[happygirl]

So is the basis of this "incentive" that you get money if you trade in your old car for a new GM or Chrysler? It hasn't actually become law yet though right?

While I also don't think encouraging people to buy new vehicles is wise in this economy and I see what you are saying about inflating sales stats, I am actually looking to buy a truck soon so I'd like to know the specifics of it, just in case it could affect me in a positive way.

Thanks!

[red92s]

Originally Posted by happygirl

So is the basis of this "incentive" that you get money if you trade in your old car for a new GM or Chrysler? It hasn't actually become law yet though right?

While I also don't think encouraging people to buy new vehicles is wise in this economy and I see what you are saying about inflating sales stats, I am actually looking to buy a truck soon so I'd like to know the specifics of it, just in case it could affect me in a positive way.

Thanks!

It is not law, yet.

It actually would apply to any brand of new car, not just GM and Chrysler. Your current vehicle has to be below a certain MPG threshold, and the new vehicle has to be above a certain MPG threshold. So, unless the truck you are planning to buy gets 25 MPG or more, and you currently get 10 MPG or less, you might be out of luck.

Lets not forget that dealers will probably just increase prices, or add additional options and packages to cars meeting the criteria because they can "hide" it better when people are applying a $4500 credit.

These programs already exist and work in Europe. But, here, as soon as it was announced as a possibility, people were trying to find ways to profit from it and "beat the system". Any initiative like this has zero chance of success in the US without a fundamental shift away from the "how can I get stuff" collective mentality we seem to have.

[tripods68]

For example, I have 95 Altima which gets around 16-17 MPG, a 14 year old car. Who verify this MPG? Is it the the dealership who I intend to buy and replace it with or my mechanic?

Realistically though, we just paid off our 06-Odyssey. It is unlikely we'll take on another car payment unless we can pay for it CASH. In the meantime, we hope old car can at least last for another 3 more years.

[happygirl]

I think you are all making good points. I think I'll just continue with my search for the best deal out there while being aware of this program, but certainly not counting on it. I have an old minivan to trade in, with nearly 200k miles on it, but I honestly don't even know how many MPG it gets. Probably more than 10 anyway though.

[tripods68]

Originally Posted by happygirl

I think you are all making good points. I think I'll just continue with my search for the best deal out there while being aware of this program, but certainly not counting on it. I have an old minivan to trade in, with nearly 200k miles on it, but I honestly don't even know how many MPG it gets. Probably more than 10 anyway though.

Total miles driven/#gallon = mpg

I fill up my Odyssey--about 18 gallon per tank on average. We drive on average 350 miles before the next refill. We refill every 7 days.

350 miles/18 gallon = 19.44 mpg (combined highway & city)

My 95 Altima gets anywhere from 15 to 17 mpg.

[red92s]

I'm sure the MPG figures have to come from a standardized source such as the EPA, not your observed mileage. It's Only way to make it uniformly applicable.

[conancare]

QUOTE=happygirl;224087]Hi. Has anyone heard about a bill called Cash for clunkers? From what I understand, if it's passed into law you can turn certain old vehicles (not older than 25 years) in when buying a new vehicle and will receive a discount/incentive of up to 4500$.

I'm sure there will be limitations and there's got to be good and bad to this idea, but I had a hard time understanding it all.

Can anyone explain it in simpler terms? Thanks![/quote]

Hi Happygirl,
Before i could comment, i would request you to please go through the below link that will help you to know more about Cash for Clunkers.
cashforclunkersfacts dot com

Please revert for your queries.
Regards
Conan
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