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With $1.7 billion already claimed by consumers, the NHTSA is preparing a wind-down of the CARS rebate program, reports Automotive News [sub]. Based on dealer sales and “other surveys, the NHTSA “can make a pretty good judgment call” about when to end the program, reckons Transportation Secretary Ray LaHood. “I know dealers are frustrated, but they’re going to get paid.” LaHood said the program’s high rejection rate is due to the huge demand and dealers’ “failure to fill out claims correctly.” Dealers, meanwhile, are far more likely to blame the rampant delays and rejections on the NHTSA’s “failure to have their shit together.” Either way, it sounds like just about everyone is ready to be done with Cash for Clunkers.
21 Comments on “Cash for Clunkers Wind-Down Planned “Within Days”...”
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If this horrid program lasted ONE day…it would have been one day too many.
It should have ended when the first $1,000,000,000 ran out.
The timing of this is fantastic. Now we can get on with the Repression/Decession (or worse?), even though it only went away, if for a little while, in the heads of the feeble-minded Larry Kudlow types.
The CARS Program’s legacy will be vast quantities of used cars for sale in the next 12 to 24 months; historically high numbers of “newish” used cars, of the non-fleet variety.
dahhh, the CARS program ends when the $3B is all gone or there are no more cars/trucks left on dealer lots to qualify.
And we’re considering letting this Gov’t run our very complicated Healthcare System… I don’t think so!!!
And we’re considering letting this Gov’t run our very complicated Healthcare System…
Ever heard of Medicare?
Gotta save some coin for a rerun in the unlikely event Michigan voters grow a brain before next year’s elections, you know.
Besides, the Goldman guys packaging up all these new car loans into (AAA no doubt) securities for resale, have enough work to warrant their million dollar paychecks for now.
“TZ :
August 19th, 2009 at 3:10 pm
And we’re considering letting this Gov’t run our very complicated Healthcare System…
Ever heard of Medicare?”
Yes and Medicaid and Veterans health. This exactly proves his point.
Remember guys, it’s The Truth About Cars… let’s leave the raging healthcare fracas to the political blogs
Look how fast the $3 billion went! It’s time for Cash For Clunkers The Sequel! Rebates that are twice as much, and any vehicle (the one you’re buying or the one you’re dumping) that runs on petroleum distillates will qualify for the government cheese! Lemme at that!
Initial funding: all the TARP money that hasn’t already been squandered. Program end date: election day 2010.
The only catch: rebate processing will be performed by IRS auditors who have severe dyspepsia.
Looks like GM’s management has timed their production increase perfectly…again.
Here’s to you Fritz, Bob and Mark.
Bunter
Can’t wait for people to try and unload their new cars when they realize they’re on the hook for monthly payments.
Car resale values will plummet
Meanwhile NY dealers end the program early because they aren’t getting reimbursed.
http://www.breitbart.com/article.php?id=D9A63DK01&show_article=1
The sooner this grotesque sham ceases the better. Then, the market will correct, and those who are actually able to afford a new car can, since they will not have to compete with those on the government dole. I almost feel sorry for the C4C dupes who, in the next year or so, will be angry watching as the repo man takes their new leased/financed car away. Let’s face it, they should’ve kept their paid for clunker, but, instead, these poor souls will have nothing to show for all their trouble. Nothing. Great going, government. What’s next in your cross hair?
Is this program run by a Clapper?
CARS ON! CARS OFF! CARS ON! CARS OFF!
Yup, it’s time to try to oft mooted ultra-conservative alternative.
Complete contraction of spending. Everyone loses their jobs. Deflation. Everyone is upside-down on every single loan. Homes are worthless. Schools close. Local services shutdown. California bankrupt (who cares!). Illegal migration to Canada and Mexico. Widespread food lawlessness.
Maybe it will last 10 years, like Japan in 1990s.
It won’t be too bad.
PeteMoran-Ummmm, you might be exagerating the stance some of are taking a teeny little bit.
Recognizing that the debt pendulum swung too far one way does not require that one supports a reactionary swing to the opposite.
I continue to hold that the Gov is supporting sustaining the very behaviors that got us into this mess in the first place.
Just a thought or two.
Take care.
Bunter
The C4C program has wiped out the 2009 models for the most part, so the dealers will start the 2010 model year lean. That means fewer discounts in the months to come.
For those who think these C4C buyers were going to be in the market in the near term or that they are po’folk that won’t be able to afford the payments, you are mistaken. The majority of these buyers had no intention of buying a new car anytime soon. Most of these people won’t be able to stand having a loan and will end up paying it off early. Then they’ll drive their shiny new car for the next 15 years.
dwford, you are correct. We got in on the C4C and traded a high mile daily drive for new. Might have waited a year otherwise, but we got more car for the same money now than we would have otherwise because the clunker would have been near worthless then (assuming it even still ran) and the daily driver would have another 25,000 miles on it (taking it up around 180,000), making it worth even less than now.
mpresley, you are assuming most C4C buyers are near-deadbeats. I think a lot of people have been sitting on their money due to fear of the direction the economy is going, but like us, got off our duff and back into the market when the feds offered us what I view as a rebate of all the high taxes we’ve been paying for the last 35 years. Remember, it’s not their money, it’s ours that we let them use. I just got some back.
This program can’t end soon enough for car donation charities. When it was first proposed, we asked that the c4c cars be given to charity and the charity allowed to determine its fate. Cars in poor shape would be scraped. Cars in good shape would be sold or given to the poor. But no, the government decided it was a much better idea to destroy all of them!
I keep hearing how frugal, responsible, and having impeccably ‘credited’ “the majority” of CFC marks….errrr, I mean customers, are.
I’ll believe that when I don’t see the CFC purchases showing up at used car lots near me soon.
I suspect that the buyers are covering a broad spectrum.
Yes, some were intenders that were pulled forward.
Yes, some have no buisness with a loan.
However it still increases (incrementaly) the debt burden of a population with too much debt already.
C4C still looks like short term panic driven thinking by the Gov to me. Shocker.
Bunter
Between the manufacturer rebates and C4C money, these customers are not driving off the lot only to be immediately upside down like most car buyers. If any of them get into financial trouble, they should be able to sell their way out of it clean.