CASH FOR CLUNKERS FIASCO SAVES $350 MILLION, AND COST TAXPAYERS $3 BILLION-WHO IS DOING THE MATH, A BIG CITY PUBLIC SCHOOL GRADUATE???

The government's highly touted and costly $3 billion cash for clunkers giveaway plan appears to be just another government giveaway with no common sense behind it.

If we just do a little math, not fuzzy math, or rounding math, just REAL math, here is a rough calculation of what all that needless pending was all about.

let's calculate that a clunker vehicle at 15 miles to the gallon, driving 12,000 miles a year would use 800 gallons of gasoline a year. If you traded that clunker for a new vehicle that gets 25 miles to the gallon, it would use 480 gallons of gasoline.

Thus this reduces the gasoline usage by 320 gallons a year!

They claim to have sold 700,000 vehicles, which translates to 224 million gallons in fuel savings, or about 5 million barrels of oil. This is about 25% of ONE DAY'S OIL CONSUMPTION UN THE USA!

That's right, it is about one quarter of one day's consumption!

If we use the current oil cost of $70 a barrel, the savings total ONLY $350 million for which the government has paid $3 BILLION. YES $3 billion to save $350 million!

Even a graduate of the public school system can see that this is another worthless government give away...maybe.

CASH FOR CLUNKERS PROGRAM, A CLUNKER THAT JUST SUCKED UP AVAILABLE CASH FROM CONSUMERS-NO BENEFIT TO THE ECONOMY!

Car dealers sold some cars, with government estimates at 700,000 vehicles, but applications processed at 150,000...so how many were sold?

The people buying the cars who used the incentive program had to allow their cars to be junked...the junk yards (excuse me the scrap dealers), will sell parts, but auto parts shops will not, poor people can not buy a used car and charities will not get the car donations.

So what was the point?

I can not understand the point of taking my tax money, or having the government borrow money on my behalf and give it to a car dealer. What did that accomplish?

Buyers who financed their vehicles will be paying a monthly payment for years and thus taking the cash out of other purchase possibilities.

Just another failed government program wasting my money and a burden for future generations to pay off.

CASH/CLUNKERS-NEW GOVERNMENT PROGRAM-NEW SCREW-UPS...WHAT DID WE EXPECT A GOVERNMENT PROGRAM THAT WORKS?

As we expected, the government started something and it is NOT working as promised. Nothing new there, everything is working as expected, after all it is being run by the government!

Hundreds of auto dealers in the New York area have withdrawn from the government's Cash for Clunkers program, citing delays in getting reimbursed by the government, a dealership group said Wednesday.

The Greater New York Automobile Dealers Association, which represents dealerships in the New York metro area, said about half its 425 members have left the program because they cannot afford to offer more rebates. They're also worried about getting repaid.

"(The government) needs to move the system forward and they need to start paying these dealers," said Mark Schienberg, the group's president. "This is a cash-dependent business."

The program offers up to $4,500 to shoppers who trade in vehicles getting 18 mpg or less for a more fuel-efficient car or truck. Dealers pay the rebates out of pocket, then must wait to be reimbursed by the government. But administrative snags and heavy paperwork have created a backlog of unpaid claims.

Schienberg said the group's dealers have been repaid for only about 2 percent of the clunkers deals they've made so far.

Many dealers have said they are worried they won't get repaid at all, while others have waited so long to get reimbursed they don't have the cash to fund any more rebates, Schienberg said.

"The program is a great program in the sense that it's creating a lot of floor traffic that a lot of dealers haven't seen in a long time," he said.

"But it's in the hands of this enormous bureaucracy and regulatory agency," he added. "If they don't get out of their own way, this program is going to be a huge failure."

The program is administered by the Department of Transportation. Transportation Secretary Ray LaHood said Wednesday that dealers will be repaid for the clunkers deals they have completed.

"I know dealers are frustrated. They're going to get their money," LaHood told reporters. He said the Obama administration would soon announce how much longer the $3 billion car incentive program will last.

Through early Wednesday, auto dealers have made clunkers deals worth $1.81 billion, resulting in 435,102 new car sales, according to the DOT.

And how has this so far helped the economy, really?

CASH FOR CLUNKERS COULD BE OPPORTUNITY TO SHAFT BUYERS TWICE; ONCE BY THE GOVERNMENT AND ONCE BY THE DEALER! SO WHAT'S NEW?

The enticing advertisement stated that you will get up to $4,500 for your clunker! So you gave up the clunker, but the dealer who was counting on getting the money from the government under that "great" successful idea DID NOT RECEIVE IT. I am waiting for the cash for stereos and mattresses and cash for refrigerators, and cash for lawnmowers, and cash for old yard pools, and cash for old shoes and suits and cash for leisure suits...why not!?

With big government, so far that was the ONLY big idea that actually worked even though it was just giving my money to others for FREE! Why not give away more money for literally everything. let's just get new stuff with the government buying our old stuff?

Sometimes, a dealer will not be able to collect the cash due to ineligible buyers etc., or for other reasons, and then can demand that the customer come up with the money that was due to be paid to the dealer by the government.

So, in actuality, the buyer can be shafted twice..once by the government and once by the dealer! So, what else is new?

Now the government is telling dealers how to run their business.

The U.S. Department of Transportation is advising consumers taking advantage of the “Cash for Clunkers” program not to sign contingency agreements promising to pay back up to $4,500 if dealers don’t receive payment from the government.

No contingency agreement is required to participate, the Transportation Department, which administers the $3 billion Car Allowance Rebate System, said on its Web site.

The Minnesota Automobile Dealers Association has a form on its Web site that members can use as part of a new-car closing. By signing the form, the buyer agrees to reimburse the dealership the incentive amount if the dealer is unable to obtain the credit from the government “for any reason.” The consumer can also return the car to the dealership and pay “a reasonable charge” for use of the new vehicle, according to the form.

Consumers signing the agreement also acknowledge their trade-in vehicle may have been destroyed and can’t be returned.

Dealers may be acting improperly by asking consumers to keep their old cars until credits for their vehicles are approved by the National Highway Traffic Safety Administration, the Transportation Department said on its Web site. If the new car is in stock, the dealer must allow the buyer to take possession before the paperwork for the credit can be submitted, the department said.

Cash Demands

In some cases, dealers are demanding $4,500 in cash to avoid reporting the car as stolen when the government credit doesn’t arrive, said Rosemary Shahan, president of Sacramento, California-based Citizens for Auto Reliability and Safety.

Gloria Sharp of Woodbury, Minnesota, traded in her Jeep Grand Cherokee for a new Honda Accord and said she was called a few days after the deal closed and asked for more money. The government rejected the credit, but the problem turned out to be on the dealer’s end -- they had mistakenly applied for $4,500 instead of $3,500, she said.

“They said if we didn’t give them the money, they wouldn’t submit the paperwork,” Sharp said.

San Francisco-based Consumer Action joined Shahan’s group at a news conference to ask the Department of Transportation, which administers the program, to prohibit dealers from forcing consumers to sign agreements that promise payments if the reimbursements don’t show up.

‘Bait and Switch’

“These practices are a form of ‘bait and switch,’” the groups wrote in a letter to Transportation Secretary Ray LaHood today. “Car buyers are particularly vulnerable to the dealers’ pressure because they have surrendered their traded-in vehicle and lack access to reliable information about whether or not the deal was approved by the government.”

Minnesota Automobile Dealers Association Executive Vice President Scott Lambert said the group would continue using the contingency form. The government hasn’t said the form can’t be used, and dealers have to protect their interests with so much uncertainty about the program, he said.

“I don’t think it’s NHTSA’s job to get between the customer and the dealer,” Lambert said. “If the consumer doesn’t want to sign the agreement, they can walk away.”

The state’s 250 participating auto dealers have submitted about $42 million in unprocessed credits, Lambert said. Deals are getting rejected by the government on technicalities and about 10 percent of Minnesota’s dealer claims have been accepted, he said. For the entire country, it’s about 2 percent, he said.

A Mess

“This program is administratively a mess,” Lambert said. “The dealerships are having a terrible time.”

Charles Cyrill, a spokesman for the National Automobile Dealers Association in McLean, Virginia, had no immediate comment.

The clunkers program is intended to spur new car sales and help revive the ailing auto industry. The program’s initial $1 billion was exhausted about a week after it formally began and President Barack Obama signed a bill approving an additional $2 billion on Aug. 7.

Lawmakers had expected the program to generate about 250,000 vehicle sales with enough money to last until Nov. 1. Consumers can receive up to a $4,500 credit for trading in an older car for one with better gas mileage, when certain conditions are met.

The government has received 316,189 applications for credits as of yesterday, according to the Transportation Department. The total dollar value of the submitted applications is $1.32 billion.

Congress intended that consumers get a good deal in return for trading up to more efficient vehicles, Shahan said. Dealers are using the program to reel consumers back into the showrooms to pay extra cash, a practice sometimes referred to as “yo-yo” financing, she said.

“This is yo-yo financing on steroids,” Shahan said.

DUMB AND DUMBER-NOT THE MOVIE, IT'S THE DESCRIPTION OF THE "CASH FOR CLUNKERS" PROGRAM BY OUR GOVERNMENT

The highly touted "CASH FOR CLUNKERS" program has a great sounding line, does it not?
It would be so great to get cash for our "clunkers." But is that how it really works? NO, OF COURSE NOT, remember this is a government program thought up by people who for the most part do not live in the real world of fiscal responsibility and reality. They just decided to give up to $4,500 of your TAX money to other people to buy a car...not YOU but others using your money!

Of course, since this was thought up by the dopes in government, the rules for being able to qualify to get some or all the money are that your present vehicle can not be too old, and has to get at MOST 18 MPG. Then you can get a voucher that gets bigger if you get a higher and higher mileage car. BUT.....here comes the stupid part.

Let's say you have a car that gets 18MPG, and you buy a car that gets 22 MPG...you get money! That is a 4 MPG improvement. Great....but... if you got a car that now gets 19 MPG, and you want to buy one that gets 30MPG, an 11 MPG improvement, YOU DO NOT get anything!

Yes folks, stupid is as stupid does.....a person that would buy a car that gets way better mileage, does not qualify!

And now they want to add $2 billion to this program, solely to help out the unions?

Suggestion: BUY A FORD, A TOYOTA, A MITSUBISHI, MERCEDES AND AN NISSAN (those made in the USA) and all companies that DID not steal your money though bailouts.

The Obama administration is refusing to release government records on its "cash-for-clunkers" rebate program that would substantiate—or undercut—White House claims of the program's success, even as the president presses the Senate for a quick vote for $2 billion to boost car sales.

Transportation Secretary Ray LaHood said Sunday the government would release electronic records about the program, and President Barack Obama has pledged greater transparency for his administration. But the Transportation Department, which has collected details about 157,000 rebate requests, won't release sales data that dealers provided showing how much U.S. car manufacturers are benefiting from the $1 billion initially pumped into the program.

The Associated Press has sought release of the data since last week. But the public and Senate Republicans demanding more information will have to wait for details because federal officials running the program don't have time to turn over data delivered by car dealers, said Rae Tyson, spokesman for the National Highway Traffic Safety Administration.

LaHood said in an interview Sunday he would make the electronic records available. "I can't think of any reason why we wouldn't do it," he said.

DOT officials already have received electronic details from car dealers of each trade-in transaction. The agency regularly analyzes the data internally, producing helpful talking points for LaHood, White House spokesman Robert Gibbs and other officials to use when urging more funding.

LaHood, the program's chief salesman, has pitched the rebates as good for America, good for car buyers, good for the environment, good for the economy. But it's difficult to determine whether the administration is overselling the claim without seeing what's being sold, what's being traded in and where the cars are being sold.

LaHood, for example, promotes the fact that the Ford Focus so far is at the top of the list of new cars purchased under the program. But the limited information released so far shows most buyers are not picking Ford, Chrysler or General Motors vehicles, and six of the top 10 vehicles purchased are Honda, Toyota and Hyundai.

LaHood has called the popular rebates to car buyers "the lifeline that will bring back the automobile industry in America." He and other advocates are citing program data to promote passage of another $2 billion for the incentives -- claiming dealers sold cars that are 61 percent more fuel efficient than trade-ins and Ford's Focus is the top seller.

LaHood also said this week that even if buyers aren't choosing cars made by U.S. automobile manufacturers, many of the Honda, Toyota and Hyundai cars sold were made in those companies' American plants.

But there's no way to verify his claims without access to DOT's data.

Senate GOP leader Mitch McConnell of Kentucky has argued against quick approval of $2 billion for the program because little is known about the first round of $3,500 and $4,500 rebates.

"We don't have the results of the first $1 billion," McConnell spokesman Don Stewart said. "You don't have them. We don't have them. DOT doesn't have all of it. We'd hate to make a mistake on something like that."

So, your taxes at work folks!

SCREWED BY THE GOVERNMENT AGAIN...CLUNKER BILL CHEATING CAR DEALERS AND CONSUMERS ALREADY IN FIRST WEEK, MONEY RAN OUT!

As expected, another government fiasco in the first week of a new program referred to as the "CASH FOR CLUNKERS" special program. You know what it is....another government stupid program.

Of course it is not able to be administered, and it was a farce. Dealers and consumers are apparently already stiffed due to the fact that it was to operate till November while the money has already run out.

Dealers have unprocessed cars, unprocessed deals and have often had to cancel sold deals due to government ineptness.

And this program only was a tiny one time $1 billion deal. Imagine the $1 trillion the government wants to manage on your health care.....!!!!! YIKES!!!!!!!

Stupid is as stupid does!

As I saw the reports of this latest screwing by the government of dealers and consumers, I passed by a new CADILLAC car dealership that was opened just a few years ago in my town.

It was really a very good looking business and it replaced a decrepit old and abandoned factory building that was an eyesore for years.

The site was purchased by an independent businessman, an owner of several other dealerships and was quite an improvement in our town. he invested MILLIONS into the land and building, the manpower and the related costs to start this business.

In the last two months GM "GOVERNMENT MOTORS" TOLD HIM THAT THEY WERE CANCELING HIS DEALERSHIP as part of the reduction of 1,500 Cadillac dealers down to 500 nationwide.

Thanks Mr. Obama....your ineptness will result in 50 people losing their jobs and the entrepreneur losing millions! Furthermore our town will have an abandoned building right in the center of town near its entrance.

Welcome to our town, "THIS BUSINESS IS CLOSED TANKS TO THE GOVERNMENT TAKEOVER OF GM."

Screwed twice: first closing of the dealership, and second by not allowing a clunker to be taken in trade.

YOUR MONEY GOING TO BANKRUPT AUTO COMPANIES WAS NOT ENOUGH-NOW YOUR MONEY IS GOING TO BUY NEW CARS FOR OTHER PEOPLE TOO!

Just when you thought that the government was done handing out your money to bankrupt auto companies, deadbeat homeowners, extending unemployment benefits for people NOT really looking to find a job, covering bad loans by bankers, paying bonuses to investment bankers, it still had one more handout of a few more billion dollars to give away if you qualify, or course. Good luck with qualifying for this new government handout. As usual there are plenty of rules that are not evident in the title of the program.

That hand out is not for you the taxpayer who pays bills on time and did not get or qualify for any handouts at the expense of others.

Another administration genius thought up the idea to give up to $4,500 to people who own "clunkers": old rusty gas guzzlers ( mostly that do not really work or drive, to be credited to the purchase of a new car.

Never mond that most of the people will not qualify to buy a new car due to low crdit scores, but it is another program of giving away needless money that creates a larger federal deficit.

Americans will get a new incentive to trade-in their gas-guzzling cars today when a government rebate program that offers cash vouchers to people who trade in their cars for new fuel-efficient vehicles officially starts.

The Car Allowance Rebate System, informally called "Cash for Clunkers," was passed by Congress in June to help jump-start struggling auto sales and to improve the environment.

But some critics say the program may be economically and even environmentally counter-productive.

It will be administered by the National Highway Traffic Safety Administration through participating new car dealers who can handle the paperwork when you buy the vehicle.

Information about the program is available at www.cars.gov.

Here's how it works: If you own a 1984 or newer vehicle that has been insured and registered to you for the past year and gets a "combined" 18 miles to the gallon or less, you can qualify. The car must also be drivable.

If you trade it in for a car that gets an additional four more miles per gallon or more, your reward is a $3,500 voucher, which can be used toward purchasing a new car.

If you switch to a vehicle that gets 10 miles-per-gallon or more in fuel efficiency, then the government gives you $4,500.

To see if your used car has a qualifying miles-per-gallon rating, the Department of Energy has set up a Web site with the official used car mileage ratings.

Many auto dealerships have accepted cars for the program since July 1, but the program officially begins today, when the National Highway Traffic Safety Administration will release the system's final guidelines.

Chrysler Group LLC announced Wednesday it would match the government's incentive program for most of its 2009 Chrysler, Dodge and Jeep models. The automaker will offer consumers an additional $3,500 to $4,500 rebate or zero precent financing on top of the money they will already receive from the federal government.

But before any consumer takes part in this program, there are some pitfalls and guidelines to watch out for.

The concept is noble: Get less fuel-efficient, more emissions-producing cars off the road and stimulate new car sales all at once. But critics say it doesn't go far enough with its fuel efficiency requirements and could end up being a subsidy for big SUVs and trucks.

Believe it or not, even some environmentalists are against the new law. They point out that it will end the lives of perfectly serviceable vehicles with years of life left. One way to be green is to get a more carbon-friendly car. Another way to be green is to "recycle" a car by buying used.

From a strictly consumer standpoint, some experts contend the Cash for Clunkers program is not a great deal. Yes, if you are bent on buying brand new, you will save money. But the savings are nothing compared with how well you can do by buying a used car.

New cars typically depreciate 20 to 30 percent in just the first year, according to the auto Web site Edmunds.com. By year three, their value is down an average of 45 percent!

Edmunds says the average sale price of a brand new car is $27,800, whereas the average price of a used car is $13,900. That's a savings of roughly $14,000 achieved simply by letting somebody else be the chump who buys the brand new vehicle!

Still want to be green? There are plenty of 3-year-old vehicles with excellent fuel economy. The technology hasn't changed much in the past few years. It's also a great time to buy used because cars and trucks are incredibly reliable these days. They can easily chug along for 200,000 miles with few problems.

So go ahead, get your share of the federal handout cash, if you can possibly qualify.

BUY A NEW CAR AND GET UP TO $4,500 FROM THE GOVERNMENT-ER...OTHER TAXPAYERS, IF YOU CAN MEET THE VOLUMES OF CONDITIONS AND HAVE GOOD CREDIT!

As usual another "Robinhood" government program will take up to $4,500 from taxpayers and give it to certain buyers of new cars which meet high mileage standards. But as usual, the conditions attached to the qualifications to receive such funds are, as expected mostly government legalese and nonsense.

The idea sounds good...remove gas guzzlers off the streets and give the buyers an incentive to buy a new car that is more fuel efficient. Sounds good, but in reality it is nonsense and will be filled with abuse.

let's assume that the less efficient cars are "clunkers". Who drives such clunkers, wealthy owners of non-efficient Hummer automobiles? No, clunkers are driven by people who can only afford clunkers....duh, no surprise there.

So how does someone who is driving a beat up $500 car, with no insurance, model year 1987 for instance, with four bald tires, a noisy muffler and an 8 cylinder smoke spewing engine buy a new car?

No credit, no car...new Obama mandates for bank loans.

No credit, no ability to use that $4,500 voucher.

Even if that buyer had credit, the requirement of having to have insurance on the car for at least a year and having it properly registered and licensed would be a further impediment to the sale, don't you think?

OFFICIAL GOVERNMENT RELEASE

President Obama Approves the Billion-Dollar "Cash for Clunkers" Act

President Barack Obama signed into law on June 24 a measure that directs $1 billion toward rebates for U.S. residents who trade in their cars or trucks for new, more fuel-efficient vehicles. Although unofficially called the "Cash for Clunkers" Act, that title is somewhat misleading, as the trade-in vehicle must be less than 25 years old and drivable, and it must be registered and insured for the full year before the trade-in date. Instead, the Consumer Assistance to Recycle and Save Act focuses on fuel economy, requiring most trade-in vehicles to have a combined fuel economy of 18 miles per gallon (mpg) or less. On the other hand, the trade-in vehicle must be destroyed by the dealer, so people won't be trading in their new Hummers just to cash in on the rebate. The law is essentially focused on those driving inefficient, aging vehicles with little or no market value, encouraging them to buy or lease new, more fuel-efficient vehicles. The new vehicles must also have a manufacturer's suggested retail price of not more than $45,000, so people buying high-end cars can't cash in on the rebate. Rebates will be awarded directly to dealers, who will pass on the savings to their customers.

The U.S. Department of Transportation (DOT) calls the new program the Car Allowance Rebate System (CARS). It requires any newly purchased or leased cars to have a combined fuel economy of at least 22 mpg, while sport utility vehicles and small and medium-sized pickup trucks and vans (collectively called "category 1 trucks") must have a combined fuel economy of at least 18 mpg. But to earn the rebate, new cars must have a combined fuel economy at least 4 mpg higher than the traded-in vehicle. That will earn a $3,500 rebate, but to earn the full $4,500 rebate, the new cars must have a combined fuel economy at least 10 mpg higher than the traded-in vehicle. Category 1 trucks earn the $3,500 rebate for a fuel economy improvement of at least 2 mpg and a $4,500 rebate for a fuel economy improvement of 5 mpg or more.

Those looking to purchase or lease a new large pickup or van must be trading in a large pickup or van or an even larger work truck. The new large pickup or van must have a combined fuel economy of at least 15 mpg. The vehicles will earn the $3,500 rebate for a fuel economy improvement of at least 1 mpg and earn the $4,500 rebate for a fuel economy improvement of 2 mpg or more. Any heavy work truck traded in for a large pickup or van can earn a $3,500 rebate, regardless of the fuel economy, but the work truck must be a vehicle from model year 2001 or earlier. That same restriction applies to work trucks traded for new work trucks, but such trade-ins can only earn the $3,500 rebate if the new work truck is of a similar size or smaller than the old work truck. The act only allows $75 million for rebates on work truck trade-ins, but that still allow for trade-ins of more than 21,400 work trucks.

Depending on the average size of the rebates, the act provides enough funding for rebates on roughly a quarter million trade-ins. The rebates will be in effect through the end of October, or until dealers provide $1 billion in rebates, whichever comes first. The act requires the DOT's National Highway Traffic Safety Administration (NHTSA) to issue final regulations by July 24, putting the act into effect on that date. To support that extremely tight timeline, the NHTSA plans to publish a summary of the act in the Federal Register in the near future. Technically, the rebate takes effect on July 1, but the NHTSA recommends that dealers wait until the final rule is issued to be sure that they don't provide ineligible rebates. The NHTSA plans to include a list of participating dealers on the CARS Web site, and also plans to list eligible vehicles, but until it does so, you can check the official fuel economy of vehicles on the fueleconomy.gov Web site. See the DOT press release and see the act, the NHTSA summary, and other information on the new CARS Web site.
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