Cash for Clunkers to officially begin July 23
When President Obama signed the Cash-for-Clunkers bill into law back on June 24, the Transportation Department was given 30 days to set the official rules and regulations for the program that will put the plan into motion. According to the official CARS (Car Allowance Rebate System) site, NHTSA intends to get the deed done a day early by July 23. Although the paper the President signed stipulated that consumers may be eligible for the program starting on Wednesday, July 1, the Transportation Department is warning dealers not the jump the gun:
Interested dealers and consumers may want to wait until all of the detailed issues that must be addressed in the implementing regulations are resolved. If a dealer chooses to structure a transaction before the final rule is issued, they will bear the risks associated with later demonstrating that the transaction meets all of the specifications of the final rule.Dealerships who violate the official rules and regulations may be subject to fines of up to $15,000. Still have questions? Click here to see the complete list of FAQs straight from the NHTSA.
[Source: CARS | Image: kudzuplanet under C.C. 2.0]
Reader Comments (Page 1 of 2)
fizzandpop 4:09PM (6/30/2009)
This is going to kill the market for donor cars, thanks, great job, awesome.
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Bobmarley 4:11PM (6/30/2009)
I hear that after the Cash for Clunkers (CFC) runs out there will be just as good dealer incentives/discounts for new and used car purchases because their will be a dry spell imediatly following the end of the CFC bill
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Anton evans 4:20PM (6/30/2009)
I miss that car spike in Berwyn
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dukeisduke 4:23PM (6/30/2009)
Here's that gallery:
http://www.flickr.com/photos/kudzuplanet/sets/72157604860763033/
Protzenegger 4:55PM (6/30/2009)
There looked to be a perfectly good 2002 on there :( Shame.
elyfant422 10:16PM (6/30/2009)
Tell me about it. Great piece of art gone and now a stupid Walgreens in its place.
Crackberry Addict 1:01AM (7/01/2009)
stupid walgreens, when i was younger i always found it intriguing. :) i miss it alot, it always caught my attention as a car fan..
Leaf 10:40AM (7/01/2009)
RIP Car Kabob
I used to drive past it every day.
dukeisduke 4:22PM (6/30/2009)
So, after the program runs out, it'll be "NO CFCs"?
/sorry, i had to
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UtahAlumnus 4:29PM (6/30/2009)
Even though I think we have a car that is eligible, and we happen to be in the market (waiting for new Equinox), on principle I refuse to participate in this program.
I don't believe CFC is part of the government's role.
How about just lowering my taxes so I can keep more of my money and use it to buy a new car.
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Nick 4:44PM (6/30/2009)
@UtahAlumnus
CFC is to help the auto industry since that industry is struggling to survive. Lowering taxes would be grrreat, but who said that you would buy a car with the money you saved? See, there's no incentive, people could spend it on jewelry, home remodeling etc.. The CFC way ensures that $ goes to save the U.S. car makers, and not WalMart.
Protzenegger 1:29AM (7/01/2009)
You're right, Nick. But this is precisely why it's a recipe for epic disaster. Folks who drive beater-ass cars for the simple reason that they can't afford a new one, will now decide to buy, plunging themselves further into debt. This reeks of the days our government first began encouraging people to buy houses they couldn't afford -- and look how well that worked.
Frank 10:45AM (7/01/2009)
You must be a GM guy. Your waiting for a new Equinox ?
http://www.edmunds.com/chevrolet/equinox/2010/index.html?mktcat=equinox-years&kw=2010+equinox&mktid=ga16950249&gclid=CKaOz
At best a 2.4L with FWD (snore) is going to get you a combine 26 mpg. You say you might have an old vehicle that qualifies at a combine 16 mpg. Take the credit and unload the clunker. Save your money, your going to need it. If you don't qualify for the credit don't blame it on pathetic principals.
Don 4:48PM (6/30/2009)
...and besides, the U.S. govt will quickly recoup the money from the program, so it's quite efficient.
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landstrasse 5:09PM (6/30/2009)
I am sorry to see, guys, that our government is doin the same mistake ours did.
this is a wonderfull way to waste money and I guess most of it will go to asia, right?
you will see tons of people buying cars now and giving away a lot of real good cars just to get the free money. but the crisis will be back after the program ends and then it will hurt for real. people who planned to buy a car in the next 2 years will do that now, but those buys will be missed in the future...
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Nightcrawler 5:17PM (6/30/2009)
"you will see tons of people buying cars now and giving away a lot of real good cars just to get the free money."
Real good cars aren't worth under $3500 to $4500 dollars. If it was actually a real good car, people will trade it in because it's trade-in value will be more than they'll get under Cash for Clunkers.
It does limit how much a dealer can lowball you on your trade though. If he wants to get it, he has to offer as much or more than the cash for clunkers value or else the buyer will turn it in to CFC.
Eric L. 7:32PM (6/30/2009)
With some exceptions, there aren't too many "good cars" that get less than 18mpg and are worth less than $4500. Most of these will be old cars driven by folks who should really keep driving them to keep their debts down. The last thing we need are people who can't afford new cars using this incentive to fall further into debt by taking out loans on new vehicles.
And for those who have been financially prudent and acquired savings by keeping their debt low and driving an old car, these people do not need a crutch of "cash for clunkers" to afford a new car - they will buy a new car when they are ready, and most likely their current vehicle doesn't get less than 18mpg.
Think really carefully what vehicles got an EPA rated 18mpg combined or lower that are say, 10+ years old (the only vehicles which would make sense to trade in using this incentive) - there aren't many.
keep the change 5:15PM (6/30/2009)
Paying people to buy cars when the debt-to-income ratio of Americans is at its highest point ever, is insane. You can't prop up an economy by encouraging more debt, all you can do is temporary prop up a particular company at the expense of everything else. Nothing could be more shortsighted and destructive.
People need to keep their cars, save their money, and do with less consumerism. I'm certainly not going to take on more debt just to give some guy in a auto plant a job for a day. Unfortunately, we have constructed an economy which is 65% based on consumer spending, which, as we know, is consumer debt. In order for Paul to have a job, Peter has to buy stuff with borrowed money that he really doesn't need. And Paul does the same to give Peter a job. Everyone consumes to give everyone else a job. But that way madness lies.
Consumption can not create wealth. All it does is eat up wealth with every transfer. If wealth could be created that way, the road to super riches would be for everyone to max out their credit cards buying stuff from everyone else. As we all know, that is the road to bankruptcy and ruin. (Not to mention that the cars themselves decay very quickly so all that wealth is unrecoverable.) Wealth is created by efficiency in work derived through technological breakthroughs and the exportation of that work to other nations. Consumption in and of itself, is economically regressive. The CFC bill, like a lot of things, simply encourages people to consume, and what's worse, that consumption is done with borrowed money.
This is unsustainable. What we saw in 2008 is the beginning of the house of cards collapsing.
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Nightcrawler 5:21PM (6/30/2009)
It's been in the news recently that the saving rate in the U.S. is increased considerably recently. Has it occurred to you that instead of encouraging more debt, this program will instead be encouraging those that have been saving up to spend some of that money?
(Though you could convincingly argue over the longer term it would be better for Americans to continue saving. But like all politicians, the current ones are only looking at the short term, and it would be better for the short term economy if we all start spending money again.)
keep the change 5:34PM (6/30/2009)
Americans have started saving more money out of fear of being homeless, which is good, but their debt to income ratio is at unprecedented levels. And cars are major purchases. No one makes them with cash. They are financed or leased for years. It is taking on huge amounts of debt for nothing. As the saying goes, if you can't afford to buy it with cash, you can't afford to buy it. (Houses excepted because the house is not consumed. It can last indefinitely, and the lot certainly lasts forever and will go up in value eventually) We need to get back to that philosophy to become financially solvent again. The CFC bill is like giving crack to a crack addict.
Keep your car or truck,pay it off if it is not paid off already, keep it well maintained, drive it for as long as the engine will hold out. With the right oil and frequent changes you can get 400,000 miles out of good vehicle. Get rid of debt and don't take on any more debt.
(I had a 95 Chevy Astro with 440,000 on it when I sold it in 2004.)