I remember seeing videos of dealers purposely burning their engines out. Because the car was worth more quickly junked than selling for cheap to someone who could eventually use it.
Is society was made of coral our world would be floral.
What this really did was remove a link from the used car business. This program gave money to people who could already qualify to buy a new car. It did not help people with less disposable income buy new cars, it did not help poor people with real smog belching older cars that should have been junked buy a car. What is did do was remove 690,000 relatively new vehicles that would have been good used cars from the market. The poor people who would normally have purchased these cars as an upgrade from their truly worn out, pollution belching cars now have no path to stepping into a better car for a reasonable cost.
I will give an example. A man I know has a 1997 Toyota Tacoma that has 300,000 miles on it. The engine was worn out and it would not pass smog test in CA. He went looking for a replacement truck (he uses it for his work) but found that all of the trucks he could afford had been turned in as clunkers. Anything that was still licenseable in CA was now $6500 and higher. Looking back at ads from just 6 months ago, there were literally dozens of trucks in his price range. Now the starting price was thousands more than just months before. He ended up rebuilding the motor at a cost of $3800 because he had to have a truck in order to work.
Junking all these cars that were traded in was a stupid idea from an economic and an environmental perspective. If you wanted to give a subsidy to the auto makers, you should have just done so. It would have been cheaper and done more good as almost half of the money went to foreign car manufacturers anyway.
I made this point weeks ago It's nice to see that it's finally getting some traction. The whole plan was ill conceived and piss poorly administered. Who ever thought this up in the first place is a an idiot who comes up with a plan to stimulate American car sales and allows foreign cars to be included in the program.
Add this to the massive and growing list failures of the Obama and Dim (no spell error) plans.
It kind fits right in with the ultimately over overwhelmingly stupid idea to raise taxes, fees, or the cost of anything when the economy is in the gutter. What does it take to get these absolute fools to understand the to stimulate growth you don't make it harder for people to buy because you are taxing hell out them to pay for dumb programs like this one, the "I don't really care about you Health Plan" or the pending "Cap and Tax you to death Plan". It would be comical if it weren't going to drag this country down to third world status. But then that seems to be Obama's ultimate goal.
Looking at historical sales data that include tradeins worth more than $4,500 should be excluded from the SAAR to keep everything on a level playing field.
Maybe they did, maybe they didn't, it's not clear one way or the other.
I don't think too many people would participate in a program that would only give them credit of $4,500 for an automobile worth, say, $9,000....LOL
“I’m worried that I will be the last Republican president.” - George W. Bush
What's the point anyway. People live in homes. If I rent or if I own, I'm occupying a home. Get all the renters to buy homes and they'll buy homes, while the previous owners of rental homes sell them because they're no longer profitable.
And they want to extend it in the bill with an unemployment extension title. I guess they at least realize people don't support the homebuyer credit so much that they can actually call it a homebuyer credit bill.