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#1058740 --- 07/31/09 08:55 PM Gov. Suspends 'Clunkers' Program
HarleyBobT Offline
Senior Member

Registered: 08/22/08
Posts: 5106
Loc: Walloon Freedom Fighter
Jul 31, 2009 6:03 am US/Eastern

Government Suspends 'Clunkers' Program

At Current Rate, Giving Out $3,500 Or $4,500 Per Vehicle Would Burn Through $1 Billion Allocated In No Time
Reporting
Lou Young
NEW YORK (CBS)-Cash for Clunkers" came to a screeching halt Thursday, after only six days on the road.

In a shocker, the government announced it would suspend the program at midnight because demand was too great.

It may have been the best $1 billion the government has spent so far this year.

Business was humming at Crestmont Toyota/Volkswagen Thursday night as salespeople rushed back to work on news that the government's "Cash for Clunkers" program was being suspended.

It's the deal where you get up to $4,500 for your older low mileage beast if you buy a new car with more efficient fuel consumption.

On Thursday night we learned the program was only good until midnight, all because of a backlog of red tape. So the salespeople were trying to get their deals through the government's Web site.

"People are loving it. It's wonderful. It's a great stimulus package," salesman Andy Beloff said.

But when asked if the government was running the program well, Beloff said, "No. No."

The dealership's lot had roughly 40 clunkers waiting to be shipped to the junkyard. Each one has already been replaced by a brand new lower mileage car. The program only started last Friday. It's a victim of its own success.

But the money may be running out faster than anyone imagined.

With almost 23,000 deals already processed and tens of thousands more in the pipeline, it's possible the $1 billion allocated for the program might have already run out and into the pockets of people like Christie Acosta, who knew a good deal when she saw one.

"I had a 1987 Ford Explorer. We had it for a while and I was ready to get rid of it," Acosta said.

For the economy it's good news, but the government's miscalculation has some a little nervous.

"These are just the deals we have to submit tonight," Crestmont president Bill Strauss said while holding a stack of papers. He said the dealership has over $100,000 on the table.

"If they can't administer a program like this, I'd be a little concerned about my health insurance," car salesman Rob Bojaryn said.

The "Clunkers" program was being administered by the National Highway Safety Administration, which has seemed overwhelmed from the get-go. Some in Congress are expected to push for expansion of the $1 billion budget on Friday.

If you have a "Clunkers" deal in the works, don't worry. The government said Thursday any transactions already made between dealers and consumers will be honored.
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#1059388 --- 08/02/09 07:02 PM Re: Gov. Suspends 'Clunkers' Program [Re: HarleyBobT]
Blaze Dell Offline
Member

Registered: 06/26/09
Posts: 28
Loc: Turning Stone
White House: 'Cash for clunkers' will roll on
Story Highlights
NEW: House approves pumping $2 billion more into automotive stimulus program

Car-purchase incentive has funds to continue, spokesman says

Stimulus program burned through much of its $1 billion funding in a week

From Ed Henry, Deirdre Walsh and Brianna Keilar
CNN
WASHINGTON (CNN) -- The popular "cash for clunkers" program will continue at least through this weekend, White House spokesman Robert Gibbs said Friday.

Obama administration officials also are working furiously behind the scenes with congressional leaders to find extra money to extend the program, he said.

"It's up and running," Gibbs said in his office, adding that it "can, will and should" continue indefinitely.

The U.S. House of Representatives voted Friday to spend an additional $2 billion on the program. The Senate vote has not been scheduled.

Sen. Debbie Stabenow, D-Michigan, announced earlier that lawmakers were working with the White House to provide the program with more money to continue and expand it.

Under the plan, people can receive $3,500 to $4,500 toward a new vehicle when they trade in vehicles with poor gas mileage for more fuel-efficient new models.

Media reports Thursday evening suggested that the $1 billion program had been abruptly suspended because the initial funding was being exhausted more quickly than expected as consumers rushed to trade in vehicles.

But Gibbs said Friday that the administration has kept the program going and that it will be in place for anyone who had been planning to make a car purchase this weekend. Watch more on the program and its possible extension »

"This program appears to be a success for car buyers, car dealers, car companies and taxpayers," Gibbs said. It has the added value of helping the environment by getting less fuel-efficient cars off the roads, he added.

"We feel confident that we will have a solution people can agree on and the program continues," he said.

Gibbs said that the program has been "extremely popular" and that an estimated 20,000 certificates for vehicle swaps are waiting to be processed, a backlog that alarmed some government officials into thinking the money will be tapped out shortly.

A person who posted a comment on iReport.com said the program helped him get into a new Ford Escape.

"I didn't buy a car to show patriotism, I bought a car because I needed a vehicle for work that I could drive long distances to perform work at various customers' facilities; a '94 Jeep Wrangler doesn't fit that bill," iReporter Ryan165 wrote.

"With current available incentives I felt it was a great opportunity to buy new, which I think everyone can agree consequently plays a small part in helping automakers stay afloat and pull the economy out of the current recession," he wrote.

Another iReporter, who goes by the name Jayberdz, said the program is ill-conceived.

"It doesn't address the worst cars and trucks out there," Jayberdz posted. "The people who own the worst are not in a position to buy new cars or trucks. The original bill would have allowed the purchase of used cars and would have addressed the environmental issue far better."

CNN's Eliott McLaughlin and Jim Kavanagh contributed to this report.

All AboutNational Economy • Auto Financing








Find this article at:
http://www.cnn.com/2009/POLITICS/07/31/cash.for.clunkers/index.html

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#1059407 --- 08/02/09 07:39 PM Re: Gov. Suspends 'Clunkers' Program [Re: Blaze Dell]
Zorn Offline
Senior Member

Registered: 09/06/06
Posts: 1376
Loc: ny
too bad more people didnt read my topic on the Broken Window Fallacy. Destroying working cars just to get people to buy new cars, with help with my tax dollars.

if it was for global warming, ok, but it isn't helping our economy, just the car companies.
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