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Elspeth
07-30-2009, 11:36 PM
http://finance.yahoo.com/news/AP-sources-Govt-to-suspend-apf-3529110957.html?x=0&sec=topStories&pos=1&asset=&ccode=

I guess free money programs work really well. :)




WASHINGTON (AP) -- The White House said Thursday it was reviewing what has turned out to be a wildly popular "cash for clunkers" program amid concerns the $1 billion budget for rebates for new auto purchases may have been exhausted in only a week.

Transportation Department officials called lawmakers' offices earlier Thursday to alert them of plans to suspend the program as early as Friday. But a White House official said later the program had not been suspended and officials there were assessing their options.

"We are working tonight to assess the situation facing what is obviously an incredibly popular program," White House press secretary Robert Gibbs said of the Car Allowance Rebate System. "Auto dealers and consumers should have confidence that all valid CARS transactions that have taken place to date will be honored."

Gibbs said the administration was "evaluating all options" to keep the program funded...

Rockntractor
07-30-2009, 11:50 PM
Good story but lets see if we can find a non AP source
http://www.usatoday.com/money/autos/2009-07-30-cash-for-clunkers-program-suspended_N.htm

Nubs
07-31-2009, 12:42 AM
Did a little ROI calculation on this program. I do apologize for the format, Excel does not transfer well.



Seed Money $1,000,000,000.00
Average Rebate $4,000.00
Total Rebates 250000
Average Fuel Economy Increase 4 mpg

at 18mpg at 22 mpg
Average Miles Driven per Year 13000 13000
Average mpg 18 22
Gallons per car per year 722 591
Gallons saved per car per year 131

At $2.50/gallon
Savings per car per year $328.28
Program savings per year $82,070,707.07

Program ROI (years) 12.18 years

We just invested 1 billion dollars that will not break even for 12 years!!!!!

Mind you there are a few assumptions here, but I will be happy to revise a actual numbers become available.

I hope all these cars are on the road well past 2022

PoliCon
07-31-2009, 01:01 AM
Rush had a caller that was talking about this program today - apparently they don't want REAL clunkers at all. Guy had a truck that qualifies in every one except one - it's a TOTAL clunker. Thing doesn't run. When he said to the dealer he'd have the truck towed by - the dealer shut him down insisting that the car must be in running condition.

Nubs
07-31-2009, 11:37 AM
They want to do this for fuel economy.

My neighbor got $3500 for a perfectly good older minivan. It would have been great for a private sale to someone with only a few thousand dollars to spend. The car must be crushed.

SaintLouieWoman
07-31-2009, 01:37 PM
I hope the Congress looks to this program for an example of what can happen to costs for the government health takeover boondoggle. If they ran out of money in FOUR DAYS with this car clunker program, what in the world is going to happen with a health care program? Get out the tin cups, folks, we'll have to go begging to China or wherever. :eek:

Lager
07-31-2009, 01:41 PM
Between this and the digital converter boxes...........

lacarnut
07-31-2009, 01:47 PM
With people losing their jobs and tax revenues going down, these clowns in DC are spending like there is no tomorrow. $8k for first time home owners, $4k for clunkers, I wonder what will be next. I am still waiting for my damn pony.