Cash for Clunkers program to be suspended

[barryr]

And possibly shelved for good. A government program full of delays and not enough supply to meet demand? How surprising. Sounds like what has been said about this healthcare proposal. Not enough doctors to meet the demand and delays will be the result, just like this program. But we know that won't happen with the government and a much more complex program in healthcare though.

'Cash for clunkers' program may be shelved

Because of heavy processing backlogs, auto dealers fear the program is just about to run out of money.

Updated: 9:20 p.m. ET.

It was a swell program -- while it lasted. Too good, actually.


The government plans to suspend its popular "cash for clunkers" program amid concerns it could quickly use up the $1 billion in rebates for new car purchases, congressional officials told The Associated Press late today.

The Transportation Department called lawmakers' offices to alert them to the decision to suspend the program at midnight Friday.

The program offers owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle.

Congress last month approved the Car Allowance Rebate System program, known as CARS, to boost auto sales and remove some inefficient cars and trucks from the roads. The program kicked off last Friday and was heavily publicized by car companies and auto dealers.

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

A survey of 2,000 dealers by the National Automobile Dealers Association found about 25,000 deals had not yet been approved by the National Highway Traffic Safety Administration, or nearly 13 trades per store.

Bill Golling, owner of Golling Chrysler-Jeep-Dodge in Bloomfield Hills, Mich., told the Detroit Free Press that his dealership had sold 80 vehicles already under the program.

"It’s working so well I’ve got people mad at me because I can’t take care of them," he said.

The popularity of the program raised concerns that with about 23,000 dealers taking part in the program, auto dealers may already have surpassed the 250,000 vehicle sales funded by the $1 billion program.

Since the program was to run as long as there was money left in the $950 million pool, dealers have been concerned the fund could run dry before they were reimbursed for all their deals -- which requires them to junk the clunker.

"That’s something we’re watching very closely," NHTSA spokesman Rae Tyson told the Free-Press today.

"We need to make sure that there’s enough money in the system to cover the transactions that have already occurred. We certainly don’t want dealers to get stuck."

"There's a significant backlog of 'cash for clunkers' deals that make us question how much funding is still available in the program," said Bailey Wood, a spokesman for the dealers association.

A big problem appears to be that the process for submitting qualification paperwork is incredibly slow, the Free Press said.

One dealer told the paper, "I have not spoken to one dealer that has received approval, and or has been funded, for even a single transaction."

http://articles.moneycentral.msn.com/Investing/Dispatch/market-dispatches.aspx?post=1209770&_blg=1,1209770

[ghwk]

Nope! Found 2 billion today!

[barryr]

Hilarious. Can't figure out how much money this program needs and have to quickly find more tax dollars, which won't help the backlog that'll come again. But they will get the massive healthcare right though. Good grief these guys are stupid.

[footstepsfrom#27]

They won't take your '74 Pinto barry?

[TexanBob]

I think the government wants to take these clunkers so they can resell them to Obama's Cuban friends. Those 1958 Chevys are probably impossible to upkeep by this point. You'll start seeing Toyotas showing up around Havana any day now.

[Dukes]

http://www.ibdeditorials.com/IMAGES/CARTOONS/toon073109.gif

[Rigs11]

So wait, you bitch because they were gonna suspend it and now your bitching because they're gonna extend it?you rightards are truly something

[snowspot66]

Here's the thing. It's being considered for suspension because it's ACTUALLY WORKING and it's working BEYOND expectations (50,000 cars in what? A week?). It's a run away hit government program putting money into the pockets of American dealers and that money flows out into the economy. A stimulus program that actually works as intended and is popular with the people. Not only that but the better it works the more efficient the American car fleet becomes.

But of course something actually working is a perfect reason to cancel it. If it gets canceled it will be because politicians don't actually know how to handle success.

[TexanBob]

Nobody I know was complaining that it was being suspended. We were laughing that the program was so incompetently mismanaged. These are the same socialists who want to run our health care system and they can't even run a rebate program for cars without turning it into a bureaucratic cluster****.

I'm amazed that the same liberals who were horrified, mortified that somehow the government could be listening in on terrorist's phone calls has absolutely no problem with the government having access to the health care records of every law-abiding citizen, to be used for any and every government whim.

[cutthemdown]

It's a stupid plan really made only to appease union auto workers. People will buy cars when they are the right price for the market, or they really need one. It's not fair to use my tax money to help someone buy a car. Especially when my 99 gas guzzling v6 chrysler 300 does not qualify. They say it gets 19mpg, **** I wish it did. More like 16 avg.

I just think its funny some of the cars in not too bad of shape but govt destroys them anyways. In some cases the new car only gets 6 mpg or so better. Is that really going to make a huge difference or is it just another taxpayer money giveaway?

Great for automakers and people who work for them I guess. Or anyone who needed a car and there clunker qualified.

[snowspot66]

Incompetantly mismanaged? The program has been going for a week and has processed 22,000+ applications and another 25,000 sitting in the in-box. Do you know how to handle that much paper work? They literally had a forest worth of paper delivered to their office in the span of a few days..

[Requiem]

Man, the minorities in this country are going to make a killing off this cash for clunkers stuff. Especially the hispanic community, who by in large drive pieces of crap. This stuff is so God damned biased against the white man it isn't even funny. WHO ARE THE SLAVES NOW?

[Dukes]

Man, the minorities in this country are going to make a killing off this cash for clunkers stuff. Especially the hispanic community, who by in large drive pieces of crap. This stuff is so God damned biased against the white man it isn't even funny. WHO ARE THE SLAVES NOW?

Only white people can afford to buy new cars, so it all equals out. :welcome:

[Requiem]

Only white people can afford to buy new cars, so it all equals out. :welcome:

I'm just teasin' anyways, babe.

[Dukes]

I'm just teasin' anyways, babe.

As am I :)

[Dudeskey]

Didn't plan on buying a new car anyway...™

[watermock]

2 billion is now chicken feed.

What's amazing is how GM and Chrysler get no special treatment, even tho owned by the Government.

Also, there is only a 4 MPG combined improvement.

People are simply putting batteries into junk and limping them in.

Dealers estimate the worth of trade ins at 400 dollars, and with no engines, why keep the parts?

Only SUV's will qualify, and it will melt hundreds of thousands of pickups.

Ya know, those made for WORK!.

This is what you will se e traded in:

http://w2k2.co.utah.ut.us/Dept/PUBWRKS/Data/WNData/758.jpg

[barryr]

They won't take your '74 Pinto barry?

Um yeah, maybe they'll take your skateboard sonny boy.

[barryr]

The companies are having to demolish the cars brought in and saving parts apparently is not what they are supposed to do and some care being brought in are just fine and people just getting better looking cars is all. This program is helping the car dealers, which I already thought the government helped them with all of that money.

[frerottenextelway]

Glad to see the program is a hit. A good day for our environment and our economy.

[frerottenextelway]

in some cases the new car only gets 6 mpg or so better. Is that really going to make a huge difference...


yes!

[Dukes]

Glad to see the program is a hit. A good day for our environment and our economy.

You mean lowing prices and giving incentives (taxes breaks) are good for the economy?

[frerottenextelway]

You mean lowing prices and giving incentives (taxes breaks) are good for the economy?

Targetted gov't subsidies are great!

[peacepipe]

It's a stupid plan really made only to appease union auto workers. People will buy cars when they are the right price for the market, or they really need one. It's not fair to use my tax money to help someone buy a car. Especially when my 99 gas guzzling v6 chrysler 300 does not qualify. They say it gets 19mpg, **** I wish it did. More like 16 avg.

I just think its funny some of the cars in not too bad of shape but govt destroys them anyways. In some cases the new car only gets 6 mpg or so better. Is that really going to make a huge difference or is it just another taxpayer money giveaway?

Great for automakers and people who work for them I guess. Or anyone who needed a car and there clunker qualified.
Not to mention he's appeasing every indirect job related to it. such as steel workers(you wouldn't want an axle/frame to be made of fiberglass), and those pesky plants that make tires. How about stereo manufacturers. They are already talking about bringing back workers cause of the success of cash for clunkers. They should've kept it at the original $4 billion.

[Spider]

If I got an extra 4 miles to the gallon I would be so freaking happy , I wouldnt insult anyone for 24 hours at least ......5.5 MPH is rough

[cutthemdown]

Not to mention he's appeasing every indirect job related to it. such as steel workers(you wouldn't want an axle/frame to be made of fiberglass), and those pesky plants that make tires. How about stereo manufacturers. They are already talking about bringing back workers cause of the success of cash for clunkers. They should've kept it at the original $4 billion.

Actually they are just selling inventory I doubt it has helped any steel. Plus most steel imported no anyways right? Not to mention people not even buying American, most people going str8 to Toyota and Honda. Sure they make stuff here also but the profits don't say.

But we cant make it cash for clunkers, but buy AMerican, because that would be unfair trade and run afoul of the WTO. God forbid we do that.

Sure its a success but its short term. All they did is take my money, your money, and help someone buy a car with it. So if you are a car dealer its great news.

How about something for us musicians out slugging out 4 hour gigs for next to nothing. Why not a bailout for us, is music not important?

Sorry but repub or dem, IMO this is a bad plan and in the end just costs money and gives some lucky people a car they could not afford otherwise. Great for them but not really so much for anyone who managed money right and already had a good car. Anyone still driving an 88 gas guzzler doesn't deserve me paying tax so they can upgrade.

[cutthemdown]

If I got an extra 4 miles to the gallon I would be so freaking happy , I wouldnt insult anyone for 24 hours at least ......5.5 MPH is rough

yeah 5.5 is crazy. I would guess in trucking fuel and insurance a real killer.

High insurance because you have valuable cargo, and a huge heavy machine that can crush any other car on the road like a bug. Any idiot can imagine the fuel costs.

More then that though the being away from family and the toll on the body has to be even tougher.

I don't pretend for on minute to think trucking an easy job. I may make a joke or 2 but I have actually ridden along with my friends dad before and have seen what a crazy job it is. How you people can drive for 7-8-9- and up at a time is crazy. I get leg cramps driving my car at like 2-3 hours lol.

Tough friggin job you do.

You should drive some old ****ed up rig on its last leg into a chevy dealer and say heres my clunker!!!!

[Bronco_Beerslug]

Glad to see the program is a hit. A good day for our environment and our economy.Yep, the program is back on track with another 2 billion in funding on the way.

[Bronco_Beerslug]

It's a stupid plan really made only to appease union auto workers. Complete BS!!!

The benefits of this program are immense in removing polluting vehicles from the nations roadways. And just how many autos do you think are union made in this country as a percentage?

[Spider]

yeah 5.5 is crazy. I would guess in trucking fuel and insurance a real killer.

High insurance because you have valuable cargo, and a huge heavy machine that can crush any other car on the road like a bug. Any idiot can imagine the fuel costs.

More then that though the being away from family and the toll on the body has to be even tougher.

I don't pretend for on minute to think trucking an easy job. I may make a joke or 2 but I have actually ridden along with my friends dad before and have seen what a crazy job it is. How you people can drive for 7-8-9- and up at a time is crazy. I get leg cramps driving my car at like 2-3 hours lol.

Tough friggin job you do.

You should drive some old ****ed up rig on its last leg into a chevy dealer and say heres my clunker!!!!
;D being away from home is the hardest , my wife had to take our 8 year old into urgent care , pretty sick little man , Oh and Hannah found a vest , and a ball cap , she was wearing them , looked so cute in the picture I got .....I am in Pueblo Colorado right now , on my way with an Army Bulldozer to Chaparral new Mexico ,Yeah get right down to it , my job does suck , but it has to be done , so my kids can enjoy America also ;D

[cutthemdown]

;D being away from home is the hardest , my wife had to take our 8 year old into urgent care , pretty sick little man , Oh and Hannah found a vest , and a ball cap , she was wearing them , looked so cute in the picture I got .....I am in Pueblo Colorado right now , on my way with an Army Bulldozer to Chaparral new Mexico ,Yeah get right down to it , my job does suck , but it has to be done , so my kids can enjoy America also ;D

Gotta do what you gotta do. That's something we can all relate to.

[Dudeskey]

It's a stupid plan really made only to appease union auto workers. People will buy cars when they are the right price for the market, or they really need one.

I'm not so sure about that since its been used even for non-union manufacturers. What makes it real bad is when you find scrap steel is only going for about 4 or 5 cents a pound right now.

[Bob]

So wait, you b**** because they were gonna suspend it and now your b****ing because they're gonna extend it?you rightards are truly something

There are so many examples of stupidity that one can see with this program -- and you trust the government to run healthcare.

They planned for four months, and it lasted for four days? Its a raging success because people wanted to get to get free stuff? Is that a surprise to anyone?

[Bob]

Here's the thing. It's being considered for suspension because it's ACTUALLY WORKING and it's working BEYOND expectations (50,000 cars in what? A week?). It's a run away hit government program putting money into the pockets of American dealers and that money flows out into the economy. A stimulus program that actually works as intended and is popular with the people. Not only that but the better it works the more efficient the American car fleet becomes.

But of course something actually working is a perfect reason to cancel it. If it gets canceled it will be because politicians don't actually know how to handle success.

Your logic is flawed. Yes, the demand is high for free money...

Here are just some things that are wrong:

1. Government should not be involved in giving away free money

2. Government is creating additional debt for consumers already buried

3. Government planned for the money allocated to last for four months -- it lasted for four days?

4. Government only hired enough folks to process paperwork if demand was much smaller, so now dealerships had to font the money will now have to wait for how long befor seeing any?

5. After the cars are made useless, where are they sending them? Are some raw materials being sent to China, I wonder how much fuel that would take and much much polution that would generate vs that paid-for car being replaced by an unpaid for car?

6. Now that the program has another 2 billion added to it, when does it stop? And when will the next 2 billion be added? One month from now?

7. If we create government-driven demand now by getting rid of older cars, wouldnt it take future real demand for new cars out of the economy -- when the demand would by those who would not buy a car with government barrowed money, and before they were ready to take on teh debt themselves?

[Bob]

2 billion is now chicken feed.

What's amazing is how GM and Chrysler get no special treatment, even tho owned by the Government.

Also, there is only a 4 MPG combined improvement.

People are simply putting batteries into junk and limping them in.

Dealers estimate the worth of trade ins at 400 dollars, and with no engines, why keep the parts?

Only SUV's will qualify, and it will melt hundreds of thousands of pickups.

Ya know, those made for WORK!.

This is what you will se e traded in:

http://w2k2.co.utah.ut.us/Dept/PUBWRKS/Data/WNData/758.jpg

In my opinion government motors can go to hell...

[Bob]

Incompetantly mismanaged? The program has been going for a week and has processed 22,000+ applications and another 25,000 sitting in the in-box. Do you know how to handle that much paper work? They literally had a forest worth of paper delivered to their office in the span of a few days..

I propose a new government program to relocate all the criters displaced by this blatant habitat distruction, and propose that a Czar be put in charge of it with a budget of 2 billion.