Bell Curve The Law Talking Guy Raised by Republicans U.S. West
Well, he's kind of had it in for me ever since I accidentally ran over his dog. Actually, replace "accidentally" with "repeatedly," and replace "dog" with "son."

Monday, August 03, 2009

Cash For Clunkers Post that Isn't About SUVs

Word is today that the CFC has boosted Ford's sales tremendously in the past six days. Thanks in part to Yours Truly, Subaru sales have gone up 30% this month year-to-year. The program is a huge success in the sense that it accomplished what it intended. Compare this to the mortgage-negotiation programs that have almost no participation, total flops. We also see that the average fuel economy of the new cars, according to the gov't, is 60% better than the old cars. It is also a wildly popular program with the public. A colleague whose mother lives in Arizona told me that when she bought her new car with the CFC program over the weekend, cars were "flying" off the lot.

With all this, it is surprising that the GOP is opposing its extension and renewal.

Senator Feinstein wants to change the program to allow purchase of used cars and tighten mileage qualifications. If it weren't for the fact that changing the program now would cause severe headaches for already overworked and confused dealers and consumers, I'd say she has a point. As it is, many drivers have to be turned away because they don't understand the requirements of the program.


Raised By Republicans said...

Cool. Between us we've separated the two aspects of that thread!

Raised By Republicans said...

Leaving aside for the moment, the valid points about land fill and junk yards that US West brought up earlier, this does look like a great stimulus program. It's saving jobs and probably saving businesses too in that it will help dealerships to get through the recession.

And it's doing it by rapidly improving the average mpg and emissions performance of the cars on the road nation wide.

The icing on the cake is that it is doing all this in a way that makes middle class voters really really happy. The most successful government programs keep the middle class happy.

The Republicans are FOOLS to oppose this. Democrats should spend the August recess tightly linking Republican opposition to CFC to Republican opposition to health care reform. "See, all they do is oppose worth while programs that benefit real Americans..."

USwest said...

I appreciate Feinstein's approach.

Some friends of mine have two older cars, an old Acura Legend and a Blazer. They wanted to turn in the Legend, but it got 19 MPG and to qualify, it has to be 18 MPH and no older than 25 years. So they turned in their blazer for Prius. Good for them.

Is that people don't understand, of is that they are missing things. My friends don't know yet it they will get the benefit because they had a flood in their house and the title to their car was washed away. They have to somehow get a copy of title from the state to get the cash. So there are things like that that prevent people from taking advantage.

This is a largely middle class program. And that is where it was targeted.

As a first time buyer of a home, I will get an $8000 credit. So there is a little something for everyone in these stimulus bills. But the housing benefits have failed largely because the banks aren't cooperating. Auto makers are. In the automaker case, it's a clear win. In the Bank's case, it's a loss. That's why the housing plans aren't working.

Raised By Republicans said...

Interesting that the auto makers are cooperating better than the banks. If it's the way things are really working out then it might be because the banks got a really great bail out all for themselves without having to mess around with annoying costumers and stuff.

Anonymous said...

It is great that the program cant be used to buy a car worth more than 40K

USwest said...

yes, Anyon. this is why Ford is benefiting and GM isn't so much.

Look at the pricing of GM cars . . . . may over that $40K mark.

Dr. Strangelove said...

When I went car shopping last weekend, I had assumed that Ford and GM and Chrysler would have some real deals. I was certain I was going to end up with something like a Ford Focus. But boy, was I wrong!

The Ford Focus, their budget car, has a higher starting MSRP than the Toyota Corolla or Honda Civic. For has some new hybrids, but they are not bargains either. The Ford Fusion hybrid is more expensive than the Toyota Prius or the Honda Insight hybrids.

But as USWest notes, the entire Ford line is still generally in the midpriced $20-$35 range. GM on the other hand has a surprising number of pricier cars.

Dr. Strangelove said...

USWest writes, "There is a little something for everyone in these stimulus bills."

Oh, if only! I did not receive a "stimulus check" last year (or any year) because apparently I was just over the limit. My thirteen year old Ford pickup failed to qualify as a clunker. I leased a car instead of buying, so I don't get to deduct the sales tax this year, even though you pay sales tax on an auto lease. I bought my home two years ago at the height of the market, so I don't benefit from the tax credit USWest gets for buying at the trough of the market. And even though I am now "upside down" on my loan, since I can still make my mortgage payments, the government has zero assistance for me and the banks could care less about negotiating with me.

I know I am doing well financially and I am not seriously complaining. I am lucky to be in this position. I just wanted to note that there are quite a lot of folks like me who do not directly benefit from the economic stimulus package. If you qualify, don't take it for granted!

Raised By Republicans said...

If only my old Oldsmobile had survived until now....

USwest said...

I hear you Dr. S. This is the first time I get anything. I should have been clear in that I meant, or I think I did at the time that everyone in the chain from the dealer to the customer get a benefit. They are trying to target specific markets, like housing. When it works, when a new buyer like myself gets in, then the bank, the seller, the realtor, the inspectors, the title companies all get a piece. My house isn't REO, it's a straight up sale. So in that sense, it worked well. But this is a rare case these days. See my post above. In some instances it works, in others it doesn't.

Don't worry, Dr. S, we will find something out there for you! ;-)
I can't get a car bump either.