Or is that regulatory purgatory? Automotive News [sub] screams “Dealers decide who gets discounts,” confirming that America’s very own scrappage scheme is not going to be the quick eco-nomic (geddit?) stimulus the fans predicted. Of course, AN was getting a bit histrionic; the headline was just their wacky way of explaining that NADA is advising dealers to wait for regulations to publicly endorse the deal. The big news is the regulations. Now that the congressional pomp is over, the folks behind Government Motors are finding that the incentive game isn’t always easy. In fact, “It’s complex and not like anything we’ve ever run before,” admits the NHTSA’s Rae Tyson. “We’re starting from scratch.” What could possibly go wrong?
Dealers already have mechanisms for disposing of vehicles that they don’t want to resell. We’re going to require some foolproof means of proving that the vehicle will never be on the road again.
But don’t worry. Top men are working on it. Top men. Quoth AN, “one option may require dealers ensure that the engines or other key components are removed from the older vehicles.” Really? That had better not be the best brainstorming our government can muster. Here’s a pro-bono suggestion: send in the National Guard and let qualifying buyers destroy their clunkers with the latest military hardware.
Meanwhile, the NHTSA is talking to CNNMoney about the appearance of cash for clunker registries. Consumers do not need to register for the program. Don’t give out your social security number. And “one clue that Web sites aren’t real is if they use the name ‘Cash for Clunkers.'”
“What could possibly go wrong?”
Trust them. This is your government at work.
They should call the U.S. Embassy in Berlin. They could stick their heads together with the Germans. They went through implementation hell with their program and had to revise rules and procedures several times. Now their program, which processes 2m units instead of the paltry 300K ceiling of the U.S., is pretty much as bullet-proof as it can get.
Bertel, Bertel, Bertel,…
Silly German…this is the US Government we are talking about. They know what they are doing. They don’t need the help of the (uck) Europeans!
:)
Actually, that is not far off the truth. They are just figuring out how they (and thier friends) can make money off the deal.
Toyota has had junk yards cutting up pickup trucks for a few years now. Haven’t heard of anyone playing the system. I believe the yard sends the VIN plate to Toyota. Maybe the government ought to out source this to Toyota.
The Firestone Explorer Tires recall worked really well-for the enterprising types who went into the used tire business. Zero cost supply chain logistics.
I’d prefer that the CARS vehicles get disassembled to recover useful parts vs. just crushing them. In the end the law is so narrowly written that only the most worn out examples of the SUV excesses of the 90s really qualify. At least here in the no road salt territory, most used pickup trucks are worth something close to $3500 if they can still haul stuff and pass inspection.
I wonder how much of a vehicle taken off the road under CARS can be legally reused, especially off-road? Could a Ford 5.0 V8 with GT40 P heads from a crushed Explorer find its way into a Mustang drag race car?
One word:
eBay
Kurt wrote: “They are just figuring out how they (and thier friends) can make money off the deal.”
Too right. Pork & Paybacks. Look no further than the TARP and subsequent bailouts…
Any delay means it’s you who’ll pay. (Hey that’s catchy!)
The devil is always in the details. We’ll have to wait for the regulations to find clever yet legal ways for drivers, dealers and salvages to take even more advantage of C4C.
I have two daily drivers that in the government’s eye (but probably no one else’s) qualify as clunkers. I’d certainly not turn them in before swapping good batteries, tires, aluminum wheels, etc. for junk parts. Parts I didn’t re-use myself could be sold.
Or, another possibility: dealers allow salvagers to pay clunker drivers on the spot for usable parts, then strip off everything (e.g., front clips) that would still leave the car technically “drivable.”
Look for the emergence of a new trade: Clunker Subsidy Maximization Specialist.
«Maybe the government ought to out source this to Toyota»
+++ Good one.
Any delay means it’s you who’ll pay. (Hey that’s catchy!)
+1 cocktail to you, sir.
I like the National Guard idea, but let’s extend it to civilians. Who among us would pay to fire off a 105mm gun into the side of some clunker?
Okay, maybe it’s just me but still…
Her legs are definitely going to peel tomorrow.
I would definitely pay money for a chance to shoot up a clunker with an M2.