Clash for Clunkers

[patriot45]

A big failure! Can't see what could go wrong when the dolts take over health care!

The White House, Congress and the news media may be giving the “cash for clunkers” program high marks , but -- as with just about every government program initiated -- there are unintended consequences.

The Consumers Assistance to Recycle and Save Act of 2009 (H.R. 1550) – otherwise known as the Cash for Clunkers bill – would offer a voucher worth up to $4,500 toward a new, more fuel efficient that achieves a fuel economy rating of 18 miles per gallon or less for the old vehicle that has been insured for a year and is in "drivable condition."

Simply put, owners of old, gas-guzzling automobiles are getting more than four grand from the Feds if they trade in their clunkers for a brand new vehicle. One of the provisions of this taxpayer-funded give away is the destruction of the clunkers even if they are still functional. In other words, the government denial of $500 jalopies to young, first-time car buyers, who don't have wealthy parents, and those minimum wage workers whom liberals always claim they wish to help.

The car business is part of the trickle-down economy so vilified by progressives: A person buys a brand new car. Then within 3 to 5 years they trade it to purchase another new car. That 3 to 5 year old used car is then sold to person who wants a nice car, but doesn't want to take the hit on buying a new one. They drive it for 3 to 5 years then trade it or sell it.

That car is now 6 to 10 years old with 70k to 150k miles on the odometer. It is the perfect car for the person who doesn't have a lot of money or access to credit.

Well, thanks to Obama he is implementing a plan that will hurt the blue-collar workers, newly licensed kids, and others, who may not view the ownership of an expensive car as a priority. In addition, someone owning a 10-year old Toyota will not have to pay sky-high automobile insurance premiums since they will probably take out cheaper policies that only cover liability.

Car dealers, the people the "cash for clunkers" program was designed to help, told reporters that a lot of consumers who came into their showrooms did not fully understand the program, but that didn't stop them from taking advantage of possessing new cars with the usual chumps -- American taxpayers picking up the tab for the down payments.

On the other hand, these same dealers told these same reporters that they were concerned over whether or not the government would actually reimburse them for the discounts they gave customers. These dealers claim that they gave discounts to customers who traded in their supposed junk heaps for a big chunk of change -- between $3,500 and $4,500 -- toward the purchase of new cars and trucks.

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[BadCat]

I heard this morning, the companies doing the most business under the C4C program...are Hyundai and Kia.
Some guy was calling it the "South Korean Stimulus Package".

[patriot45]

Another unintended consequence will be a shortage of used car parts. They have to destroy the turned in autos!

[stsinner]

I was listening to a car show on the radio yesterday hosted by David Rosenburg, owner of PRIME Motor Group, and he said that this is one of the worst run things he's ever seen.. He said that he had people at his dealerships until 3 in the morning trying to submit the paperwork to the gov't website that kept going down in the middle of the application..

Just a little taste of what happens when the government tries to administer something.. It NEVER goes well.

[stsinner]

Did you guys know that a requirement in the C4C program is that the dealer is mandated to destroy the engine by sodium silicate into it!! How unamerican!!

Appendix B to Part 599 - Engine Disablement Procedures for the CARS
Engine Disablement Procedures for the CARS Program

THIS PROCEDURE IS NOT TO BE USED BY THE VEHICLE OWNER

Perform the following procedure to disable the vehicle engine.

1. Obtain solution of 40% sodium silicate/60% water. (The Sodium Silicate (SiO2/Na2O) must have a weight ratio of 3.0 or greater.)
2. Drain engine oil for environmentally appropriate disposal.
3. Install the oil drain plug.
4. Since the procedure is intended to render the engine inoperative, drive or move the vehicle to the desired area for disablement.
5. Pour enough solution in the engine through the oil fill for the oil pump to circulate the solution throughout the engine. Start by adding 2 quarts of the solution, which should be sufficient in most cases. CAUTION: Wear goggles and gloves. Appropriate protective clothing should be worn to prevent silicate solution from coming into contact with the skin.
6. Replace the oil fill cap.
7. Start the engine.
8. Run engine at approximately 2000 rpm (for safety reasons do not operate at high rpm) until the engine stops. (Typically the engine will operate for 3 to 7 minutes. As the solution starts to affect engine operation, the operator will have to apply more throttle to keep the engine at 2000 rpm.)
9. Allow the engine to cool for at least 1 hour.
10. With the battery at full charge or with auxiliary power to provide the power of a fully charged battery, attempt to start the engine.
11. If the engine will not operate at idle, the procedure is complete.
12. If the engine will operate at idle, repeat steps 7 through 11 until the engine will no longer idle.
13. Attach a label to the engine that legibly states the following:
This engine is from a vehicle that is part of the Car Allowance Rebate System (CARS). It has significant internal damage caused by operating the engine with a sodium silicate solution (liquid glass) instead of oil.

[Jfor]

I heard this morning, the companies doing the most business under the C4C program...are Hyundai and Kia.
Some guy was calling it the "South Korean Stimulus Package".

When the cars brand new cost 9 or 10 grand, the .gov gives you 4500 bucks for that POS you have on top of whatever manufacturer incentives there are, you could walk out of the dealership with a decent brand new vehicle with 10 year/100000 mile warranty for under 4 grand.

[BadCat]

When the cars brand new cost 9 or 10 grand, the .gov gives you 4500 bucks for that POS you have on top of whatever manufacturer incentives there are, you could walk out of the dealership with a decent brand new vehicle with 10 year/100000 mile warranty for under 4 grand.

The Korean warranties are really hard to beat.
I mean, if you make a good product and are willing to back it up, people will buy it.
Wonder why the US companies can't do that?