Federal Cash for Clunkers Update: On Hold
Lisa | Feb 22, 2009 | Comments 8
In July, I posted an article on a potential federal economic stimulus program called Cash for Clunkers.
Already being run by a number of states, the program boasts two benefits - 1) get the old gas guzzling polluter cars off the roads, and 2) pump cash into consumer pockets that is spent on newer, more environmentally friendly vehicles.
To ensure the money is spent on another car, the proposed federal program offers “vouchers” rather than cash towards the next car purchase. And the Senate changed the name from Cash for Clunkers to Voluntary Retirement of Fuel-Inefficient Vehicles. Under this plan,
“consumers who voluntarily turn in cars or trucks that get less than 18 miles a gallon would receive vouchers worth up to $4,500 to help them buy more economical replacements.” (New York Times quote)
To date, the Federal Program’s on hold. And the reasons they use for not implementing it seem pretty bogus to me.
Here are the purported reasons:
- It’s unclear how successful the state run programs have been.
- Many cars turned in had been sitting in people’s yards anyway. So even though the economy was getting a potential boost with the cash back, the polluting car was already off the road.
- No records were kept in any of the states on what people actually did with the received cash.
- Many people that did buy new cars didn’t buy American cars.
- Antique car groups were outraged with the program.
In my opinion, it’s a great program. There’s no question that the feds want to 1) get money back into people’s pockets, and 2) decrease pollution. This plan does this.
So why is it on hold?
My opinion’s that the government wants people to buy American cars, and the plan’s on hold because those nose-diving US car manufacturers have yet to provide a variety of dependable gas guzzling vehicle alternatives to their current antiquated product line.
When - and if - these manufacturers get their act together, and the American public is willing to take a chance on them again, I bet the plan gets passed.
What do you think?
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Filed Under: Cars • Gasoline • Sustaining Our Planet
Linda
The Passive Dad
J. Money
Matt
Mr. GoTo
Interesting post!
Seems like a very good idea to me. Putting money in hands of people that actually need it and not some New York banker I’m all for that.
Rick Vaughn´s last blog post..Tax Effects of Madoff’s Fraud
I don’t understand the repeated emphasis on so-called “American” cars. There are lots of cars made in the U.S. - by U.S. workers - in plants owned by foreign car companies. What’s wrong with buying those cars and keeping those folks working?
Mr. GoTo´s last blog post..Consumption Smoothing - Spend ’til the End
@Mr GoTo - I agree with you totally. These US owned car dealers try to make us feel guilty for buying Toyota and Honda. Why don’t they just make a better car? Then I’ll be happy to buy it.
@Rick - You said it!
Thanks for your comments, guys- Lisa
I’m one of those who have gas guzzlers at home that have been off the road for years on end… I’d gladly trade all three for a decent Toyota hybrid, or a green SUV, or something like that. I mean what’s my family gonna do with all those cars anyway? I end up coughing everytime I try to open the garage because when those cars start up, the smoke is just terrible!
Imee´s last blog post..2009 Nissan Altima Hybrid
I love the name Cash for Clunkers! Doesn’t < 18 mpg include most of the nearly new SUVs? Why people drive those monstrosities I just don’t know. Maybe their reference point for size is just way off. I mean, if you get used to seeing vehicles this size everything else looks miniature. I used to drive a car that would have been medium sized in the UK, but here in the USA I was in grave danger of being driven over by the giant SUVs if I ever had a tussle with one. I ended up getting a minivan pretty much for that reason alone.
It makes me sick when I drive past my local elementary school and see the lines and lines of SUVs picking up kids to drive them home a mere 1/2 mile distance. The kids should be walking and running for health reasons alone, but apparently the moms would rather wait in line for 15 minutes than walk for 15 minutes.
@Alison - I think we’ve all gotten a little spoiled in this country. It will be interesting to see how this recession/depression effects this generation. I think, unfortunately, sometimes it takes hard times for people to appreciate all they do have.
So how are you suppose to tow a boat or camper with a little 4-cyl economy car? or people who need a 4-wheel drive for work that are required to be there regardless of the road conditions.