Cash for Clunkers

Well, the program seems to be a real success and it looks like Republican Senators are nit-picking at it but I think they're backing the wrong side of this argument.

For example:

http://briefingroom.thehill.com/2009...refrigerators/

There are so many more ancillary dollars being generated with a new car purchase rather then a new refrigerator. Everyone will have to get full auto insurance, since their clunker probably just had state minimums. Not to mention routine maintenance will generate sales for the next 3 years for each car sold, people don't often maintain their refrigerators. Let's also factor in most people when they purchase a new vehicle like to go on road trips and more often then not. That's money for the destination (hotel, food, tourism and gas) which will boost their local economy. Also, there are usually 'new car' purchases everyone makes. Cup holders, mats, rims, etc...

Now there are some people who are nitpicking at data suggesting American cars aren't topping the list. Well, so what? that isn't the programs fault. Have you SEEN the deal hyundai is offering???

Elanta (for example)
$14,120 base
- 2,000 - Cash incentives
- 4,500 - CARS program
- 600 fuel savings (estimated with the $1.49 a gallon deal)

+ you get Sales Tax Credit back if you qualify (make uner $125k a year)

So you can buy a new Hyundai Elantra base for a little over $7,600 (without haggling on MSRP and talking the sales guy down a bit more) and you get your tax's back at the end of the year and your gas costs half the price.

Now, Chrysler announced they were going to 'double down' the CARS program and give $4,500 in savings but I happen to have been looking at cars for the last few months and they jacked their prices up about 10K before the program started which was really fucked up and might explain why they're not getting the sales.

All in all, this program is fantastic from an economic standpoint and I wish my car qualified because GM isn't offering any discounts on the Camero and $3,500 off would be niiiiiiiiiiiiiiiiiiiiice.

Anyone here actually take advantage of the offer?

ETA

It's worth noting, I'm not entirely ready to buy a car until the 2011 models come out but I'm a sucker for a real good deal and I almost picked up a Hyundai (I was eyeing the Sante Fe) and I figured I'd just end up getting another car down the road when the 2011 Camero Convertibles or the plug in Prius come out )

Sure.

For starters, anyone who would buy a foreign car with this program would also buy it without this program. Toyota has overtaken GM as number one in car sales for a reason, they produce more appealing cars to buyers; either by gas mileage, design, comfort or whatever the consumers primary motive happens to be. Are there some great American cars being produced? Sure and that is why GM is number 2 and not kia or hyundai.

As to taking out loans? Debt is not always a bad thing. With this debt, buyers are getting a minimum 36 month warranty (usually at zero percent interest on car loans) that means they have a fixed bill each month that they must pay (great for families that budget!) versus car owners that have paid for cars having to handle wear and tear out of warranty. These break downs are usually very expensive and end up going on credit cards since the average American has negligible savings (it's also worth noting, these credit cards aren't at zero percent interest). Let's also get into the fact that these people are buying cars at a phenomenal time due to the epic recession we are in. They're getting huge discounts from manufacturers due to the weakened market plus the dealers are throwing in incentives to generate a sale to keep their business open and factoring in the government savings and these people are picking up cars damn near 20-50% off (at zero percent interest).

As to the economy? See first post + this post. Let's tick off everyone getting money out of this. Dealers, Car Manufacturers, Banks, Insurance companies, auto parts stores (rims, mats, cup holders etc...), local economies on road trips (because the fear of break down is removed), etc... etc... etc...

It's hard to get away writing a bill that gives a billion dollars in government incentives to people who only buy cars from government owned institutions.