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Cash-for-clunkers program to be suspended

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Cash-for-clunkers program to be suspended

Updated at 7:17 p.m.

WASHINGTON – The U.S. government will suspend the popular cash-for-clunkers program after less than four days in business, telling Congress that the plan would burn through its $950-million budget by midnight, several sources told the Free Press.

The Michigan delegation was holding an emergency meeting convened by Rep. John Dingell, D-Dearborn, to discuss their next steps. The U.S. Department of Transportation did not immediately comment on its plans for the program, or what would happen to deals in progress.

The decision to suspend the plan came after auto dealers warned the government today that it was in danger of losing track of how many trades had actually been made.

The plan offering owners of old cars and trucks $3,500 or $4,500 toward a new, more efficient vehicle has proven wildly popular, with 22,782 trades certified by federal officials since Monday. But the National Highway Traffic Safety Administration told dealers Wednesday that a vast majority of transactions submitted were being rejected for incomplete or illegible paperwork.

more at link:

http://www.freep.com/article/20090730/BUSI...to-be-suspended

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to steal a line from prof farnsworth, I've got good news everyone. i was cruising around on drudge and came across this headline

AP sources: Govt to suspend 'cash for clunkers'

WASHINGTON (AP) - Congressional officials say the government plans to suspend the popular "cash for clunkers" program amid concerns it could quickly use up the $1 billion in rebates for new car purchases.

The Transportation Department called congressional offices late Thursday to alert them to the decision to halt the program, which offered owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle.

The congressional officials spoke on condition of anonymity because they were not authorized to speak publicly.

Through late Wednesday, 22,782 vehicles had been purchased through the program and nearly $96 million had been spent. But dealers raised concerns of large backlogs in the system, prompting the suspension.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

http://www.breitbart.com/article.php?id=D9...;show_article=1

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I figured this would be a thread about inventing a device that makes us read 'Good news everyone' in our heads, in Prof. Farnsworth's voice. :P

Anyhow, good call. Although I support getting rid of vehicles that are legitimate clunkers, this program was a very flawed one, and costly at that.

Edited by TheCaptain
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Filed under: Car Buying, Classics, Government/Legal

c4c-630op.jpg

Congress allocated close to $1 billion for the Cash for Clunkers program. That's billion with nine zeros. And all that money might be gone by midnight tonight. This, according to reports by both the Detroit Free Press and Edmunds AutoObserver. We learned earlier that the C4C program has proved to be much more successful than initially thought, with 22,782 consumers taking advantage of between $3,500 to $4,500 federal duckets for their old "clunkers" during the programs first five days. In fact, so many people are taking the feds up on the deal that dealers are worried they are going to lose track of all the trade-ins. The Department of Transportation (DOT) could announce the suspension of the program as soon as tonight. In fact, they could announce that all the money is gone and the program is over. We gotta wonder what John Maynard Keynes would make of all this.

[sources: FREEP, AutoObserver | Image Source: Theo Heimann/Getty]

REPORT: Cash for Clunkers could be dead tonight originally appeared on Autoblog on Thu, 30 Jul 2009 20:05:00 EST. Please see our terms for use of feeds.

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Thank God!! :bowdown:

Unfortunately, this came too late, as some good iron has been harmed in the process (and I hope any dealer that destoyed a car already made sure it was eligible first :rolleyes: ).

Edited by GMTruckGuy74
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Hallelujah! Let's hope this is the beginning of the end of C4C.

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Any dealer that destroys a car BEFORE they get paid for it is an idiot and deserves to lose the money on the trade.

If I were in the business, I would take serious pause in the fact that the Government is REJECTING cars already submitted to the program for one reason or another...so somebody is out driving your new car, while the car they trade just blew it's engine in your service bay thanks to some silica sand and water in the crankcase coupled with a 6000 rpm Italian tune-up...and YOU are out $4500 bucks! Hell of a deal!

If I did not know any better, I would say that this program was designed to screw auto dealers out of a lot of cash!

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I wouldn't be at all surprised that some sort of proof of destruction is necc BEFORE restitution by the Gov.

Maybe that's what the scanner is for: related to showing the 'motor is toast' code before a check is cut.

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This program is incredibly stupid, but it looks like Congress is about to dump more money into people's pockets for no reason. Small short term gain with years of painful unintended consequences to follow.

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Government is now telling people to keep the program running...they are voting to approve another $2B for the vouchers...grrrrrrrrrrrrrrrr :toiletpaper::censored:

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I agree that the program IS incredibly stupid and ineffectual in the Big Picture.... but I happened to be in the position to take advantage and get some of my own money back thru it.

I had wanted to replace my wife's car @ 75K, it now has 100K, she hoped to keep it another 2-3 years (125K), so this is a tidy compromise.

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Lol, after all those dealers spent all that advertising money promoting the program...

This program is incredibly stupid, but it looks like Congress is about to dump more money into people's pockets for no reason.

The program isn't stupid at all, it's just how they went about it. The requirements were too soft and they gave out too much money. The money could have been spent better had they put a high mileage minimum on the trade-ins and a larger mpg increase requirement for any benefits. Reducing the amount given out in each transaction would have probably been smart too.

Small short term gain with years of painful unintended consequences to follow.

Funny how I see it exactly the opposite. Small short term cost for long term gain of reduced average fuel consumption. At least that's the idea.

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Lol, after all those dealers spent all that advertising money promoting the program...

The program isn't stupid at all, it's just how they went about it. The requirements were too soft and they gave out too much money. The money could have been spent better had they put a high mileage minimum on the trade-ins and a larger mpg increase requirement for any benefits. Reducing the amount given out in each transaction would have probably been smart too.

Funny how I see it exactly the opposite. Small short term cost for long term gain of reduced average fuel consumption. At least that's the idea.

But that's why it's so stupid, the program is way too minor to have any real benefits.

It's just a dose of "feel good" for a few people, not some revolutionary advance.

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Lol, after all those dealers spent all that advertising money promoting the program...

The program isn't stupid at all, it's just how they went about it. The requirements were too soft and they gave out too much money. The money could have been spent better had they put a high mileage minimum on the trade-ins and a larger mpg increase requirement for any benefits. Reducing the amount given out in each transaction would have probably been smart too.

Funny how I see it exactly the opposite. Small short term cost for long term gain of reduced average fuel consumption. At least that's the idea.

What about the effect it will have on used car values? What will it do for the people who can't afford to buy a new car, even with the cash from this program? Taking 10,000s of thousands of running vehicles of the road will impact it, and chances are the worst vehicles aren't the ones being traded in, because like I said, the ones with the worst vehicles can't buy new cars. Chances are, if you can afford a new car even with $4500 off, your current car was probably in decent shape already.

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If I were in the business, I would take serious pause in the fact that the Government is REJECTING cars already submitted to the program for one reason or another...so somebody is out driving your new car, while the car they trade just blew it's engine in your service bay thanks to some silica sand and water in the crankcase coupled with a 6000 rpm Italian tune-up...and YOU are out $4500 bucks! Hell of a deal!

Reminds me of the scene at the beginning of "National Lampoon's Vacation", when the Griswalds try to back out of buying the Truxster... and the dealership offers them their old car back, all crushed up. Oops, yeah, we'll take the Truxster, after all.

If C4C was to get more money and continue, I feel that the customer should be required to be present as the car is destroyed... to truly understand the "recycling" process.

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What about the effect it will have on used car values? What will it do for the people who can't afford to buy a new car, even with the cash from this program? Taking 10,000s of thousands of running vehicles of the road will impact it, and chances are the worst vehicles aren't the ones being traded in, because like I said, the ones with the worst vehicles can't buy new cars. Chances are, if you can afford a new car even with $4500 off, your current car was probably in decent shape already.

Agreed... so those are all all cars that will NEVER trickle down to the poorest people... and hence they will need to keep their serious POSes for that much longer. It's only a matter of time before their cars start to look like Mexico's.

I'm getting really pissed that Congress wants to throw more money at this program. Goddamnit! I don't want my tax dollars going to help reinflate a economic bubble so that some jackass can buy a new pickup truck that is 1 mpg more efficient. You want to help the people?!? Cut our frigging income taxes! If I'd only paid 1/2 the taxes I did, I would have bought a new car... and quite a bit more. I can reinvest my money better than some fat-cat out-of-touch congressman.

The whole thing that burns me over the C4C is that for $4500, you could have put new engines in most of the victim cars and resold them or gave them to the needy. I thought it was a good point made in the Jeep forums that park rangers should have gotten the bulk of the Jeeps being destroyed. Give the C4C cars to the congressmen to drive around in, instead of limos... the C4C cars are likely more fuel efficient.

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