Cash for Clunkers lives on: Senate passes $2B refill of popular program
Cash for Clunkers lives on. The Senate passed a $2 billion extension late tonight with a vote of 60/37, giving customers the opportunity to purchase about 500,000 more vehicles through the program. The Obama administration estimates that most or all of the original $1 billion was spent in a matter of only ten days and it's expected the additional $2 billion will only last through Labor Day.
Before voting on the bill, several amendments to the program were shot down. One amendment, which sought to relegate the program only to lower and middle income families, was denied with a vote of 65/32. Another amendment to make up the $2 billion by cutting from other programs lost by a 51/46 vote.
So far, Detroit automakers have received the majority of C4C deals, with 45.3% of overall sales, followed by Japanese automakers who've amassed 36.5% of the market. General Motors has the highest overall share of C4C transactions, at 18.7%, followed by Toyota at 17.9%. The majority of C4C purchases have received the full $4,500 subsidy, which requires a vehicle to achieve at least ten mpg better fuel economy than the scrapped clunker. The $3,500 subsidy is for vehicles that have a fuel economy improvement of four-to-nine mpg. The Obama administration estimates that the average fuel economy improvement under the C4C program has improved by 61%, saving the average consumer $700 - $1,000 in fuel over the life of the vehicle.
[Source: Associated Press | Image Source: Ethan Miller/Getty]
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Reader Comments (Page 1 of 4)
Aloysius Vampa 9:01PM (8/06/2009)
Aaaaaaand here comes another hundred more posts.
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Big Mola 10:51PM (8/06/2009)
PSA: Clunkers traded in *can* be salvaged for parts (except for the engine and drivetrain).
JayP 9:18PM (8/06/2009)
About killing the clunkers...
My boy asked why the govt doesn't sell the old clunker wheels, airbags, engine parts instead of crushing them, ruining the engines.
So after explaining the deal the the kid and after he becomes the next AJFoyt/JimHall, he's running for senate.
This 7 yr old is looking for your vote. :)
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Big Mola 10:34PM (8/06/2009)
FALSE! The 'clunker' that's traded in can be salvaged for parts except for the engine and drivetrain. Be truthful to your son--Stop perpetuating the falsehood.
Rocketboy 6:52AM (8/07/2009)
Yes, but without the big ticket item (the engine), there's no point to salvage the remainder of the parts. Salvagers don't want the cars because they are not worth the money.
Stop the disinformation yourself.
EXP Jawa 9:26AM (8/07/2009)
I dunno, if the junkyards have to take the cars anyway, why wouldn't they sell off what's actually useful? People don't just go to junkyards for engines. I see a lot of people picking non-engine parts: fenders, doors, bumpers etc are all useful in repairing crash damage. Lamps, seats, consoles, and other interior parts are commonly purchased too, either to replace worn-out items, or to upgrade to options that your car might not have come with.
I've been picking through local junkyards for years and have never bought an engine, but I've purchased lots of other stuff. I'd bet that junkyards stand to make a lot off of an otherwise decent car that has a blown/wrecked engine.
bwzd7p2 2:17PM (8/07/2009)
More specifically, the law says that the disposal facility has six months after accepting the car to crush or shred it onsite. Only the engine BLOCK and powertrains AS A WHOLE cannot be sold during that six months. I'd presume a lots of Windstars, Caravans, Explorers, and Grand Cherokees will be crushed right away and sent on to the shredder; afterall, so many are traded in because there are so many to begin with. But it's the disposal facility's choice and other rarer cars will be parted out before being crushed. See the law here: http://www.cars.gov/files/TheRule.pdf and go to IV g.
VP 9:16PM (8/06/2009)
Why couldn't they just make all cars over certain age eligible? Or would that make too much sense? While my 1991 is over the limit my 1 MPG, you could certainly trade in a nice fat 2000 SUV.
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bwzd7p2 9:20PM (8/06/2009)
For those who missed it, the limit was set at 25 years because the aftermarket/restoral and repair industries lobbied against it saying that they'd be hurt and parts to restore classics would become unavailable. And the Senate couldn't change anything from what the house did or it'd be a month before it could be passed.
And let me explain before anyone asks: they didn't do just any 10MPG increase because not every 10MPG increase saves the same amount of fuel.
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ND 9:24PM (8/06/2009)
Bet you they (dealers) will want more money in two weeks!
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Mark Priestap 11:48PM (8/06/2009)
That is generous. ;)
Muscle Dude 9:25PM (8/06/2009)
Updated list of 'clunker cars' (sortable table): http://www.cardealerreviews.org/?page_id=39
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MajorGeek 9:29PM (8/06/2009)
Awesome, I can write blank checks too, so glad it's no longer illegal, I got lots of checks left!
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Jacob97SSEi 11:05PM (8/06/2009)
Good for the ones who are waiting to turn their "Clunker" in.
Also thanks to this, I have a job interview Friday at a Toyota Dealership. Wish me luck!
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RayJ 10:52PM (8/06/2009)
Good luck on the job....when metal is moving you have a chance at employment.
Matt 9:45PM (8/06/2009)
Well, it's official:
Our elected "leaders" don't have a collective brain cell working.
Enjoy the ride America, as we get flushed FURTHER into debt.
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Luis 10:31PM (8/06/2009)
I certainly hope you've been posting this since 2001.
Jacob 11:10PM (8/06/2009)
Our Flushing is about to get me a job. Whick income is TAXED, and my spending on everyday needs and stuffs is TAXED, and which TAXES generate revenue for the government. I suggest you think off all the ripple effects before spewing bologna.
Matt 11:08PM (8/06/2009)
HA! Your joking right?
"The IMF reports that real U.S. gross domestic product (GDP) grew at an average annual rate of 2.2% over the period 2001-2008 (including its forecast for the current year). President Bush will leave to his successor an economy 19% larger than the one he inherited from President Clinton"
"The U.S. unemployment rate averaged 4.7% from 2001-2007. This compares with a 5.2% average rate during President Clinton's term of office"
"The evidence shows that much of the Democratic Party's criticism of President Bush's economic record is wide of the mark. True, the economic slowdown now affecting most advanced countries will likely result in rising unemployment over the coming months. But thanks to sensible policies pursued by the Bush administration (not always with adequate support from a Democratic-controlled Congress), the U.S. economy is sufficiently flexible to keep unemployment below the 7.7% peak reached in the last post recession year of 1992. "
Did you know, Luis, that Obama said that if we didn't pass the stimulus package, the unemployment rate would reach 8.5%?
Tell me again, Luis, what the unemployment rate is now? I'll give you a hint...9.5% as of June.
Based on Obama's own words, the stimulus has FAILED. He shouldn't be allowed to waste any more of our money.
Matt 11:15PM (8/06/2009)
Jacob...please.
You will be out of work as fast as you are hired. This artificial bubble is going to pop...once the 2 BILLION dollar tap is shut off...and then the following months will be dead slow. Automakers will have horrid sales once this horrid scheme is done.
You had better save every penny you make...because Obama isn't done spending away the future generation's money.