A Rant..Enough is Enough
Once again our illustrious leaders or whatever you want to call them,have tried to FIX the Economy. What we have instead (and to be expected) is another government boondoggle.
What we have representing us in Congress today are a bunch of IDIOTS. How many of these people have ever Owned,Managed or had to sweat out Meeting a Payroll? I think it is fair to say NOT MANY!
I would really like to see some comments posted here. How about it America! Let us know what you are thinking!!
Budget events 101: how does Cash for Clunkers work?
Everyone is talking about the Cash for Clunkers incentive vehicle program, but not everyone knows whether the program could be a benefit. So, we’ve done the research for you. Everyone should know enough about the basics to make informed decisions and take advantage of any deals out there.
So, how does Cash for Clunkers work?
This year, president Obama’s administration developed another stimulus package to provide relief for average Americans, boost sales in the automotive industry and reduce the current number of emission offenders that are currently on the road. Recent trends show people are holding onto their older cars longer in fear of an unstable economy. By generating interest towards trade ins (simultaneously selling and applying the amount of an existing vehicle towards the purchase of a new vehicle), the hope is that an increase in automotive spending will also stimulate the economy at a micro and macro level and give buyers an incentive that could surpass their fears.
Another hesitation has long been the inability to get a comparable trade in value associated with the actual value of existing vehicles. No one wants to feel taken. With this program, people are guaranteed $3,500 - $4,500 to apply toward the purchase of a newer model that consumes less gas mileage as long as the vehicle can be driven onto the lot. With federal funding to offset associated loss dealers may have had to absorb, it seems that both sides of the table are benefiting. Critics say that industry pressure and congressional politics transformed “Cash for Clunkers” from a program aimed primarily at helping the environment into just another auto-industry bailout with too few environmental benefits.
Under the Cash for Clunkers bill passed by Congress in June 2009, the trade in car must meet the following two pieces of criteria:
1. The car has been registered and in use for at least a year (this provision prevents people from buying an old beater from a junkyard and trading it in for a new car);
2. The vehicle must have a combined city and highway fuel-economy rating of 18 mpg or less.
The new car must meet the following two pieces of criteria:
1. To qualify for the Cash for Clunkers program, the new car must be priced at $45,000 or less;
2. The new car must have a federal fuel-economy rating that is at least 4 mpg better than the old car you’re trading in to qualify for a $3,500 voucher, or be rated at least 10 mpg better to get the maximum payment of $4,500.
Regulations on trucks are a bit more complicated. For light- and standard-duty model trucks, which includes most sport utility vehicles (SUVs), vans and pickup trucks:
1. The old vehicle must have a fuel-efficiency mileage rating of 18 mpg or less.
2. The new vehicle must be rated at least 2 mpg better to qualify for the $3,500 voucher or at least 5 mpg better for the $4,500 payment.
For heavy-duty trucks, which includes models with a gross vehicle weight of 6,000-8,500 pounds:
1. The old truck you’re trading in must be rated 15 mpg or less.
2. The new truck must be rated at least 1 mpg better to get the $3,500 voucher and at least 2 mpg better to qualify for the $4,500 voucher.
The government doesn’t assign mileage ratings to work trucks (which weigh in at between 8,500 and 10,000 pounds of gross vehicle weight), so the Cash for Clunkers program uses age as the criteria for determining whether they qualify for a government trade-in subsidy. The old truck has to be a 2001 model or older, and $3,500 is the only amount offered to help with the purchase of new work trucks.
What happens to the old vehicles?
The vehicles traded in for this program will be distributed to salvage operators where they would be free to resell other vehicle parts. However, the vehicles will be removed from the current sales market by ultimately being destroyed.
How can you take advantage of the program?
Do your research. Contact local dealers to confirm they are participating and what additional discounts are being offered. Some dealers are throwing in hugely discounted prices on top of a higher trade in value associated with the program.
So, does my clunker qualify?
How long will it last?
Not long. Under the original proposal, the Cash for Clunkers program would have been in effect for one year, but the bill provided only $1 billion in funding. That was supposed to be enough money to keep the program going until November 1. However, less than a week after Cash for Clunkers officially got under way, Congress was forced to allocate another $2 billion to keep it running through Labor Day 2009. The original one-year program was expected to cost approximately $4 billion to $4.5 billion. If Congress decides to extend the program again, some of that additional cash may come from the $787 billion economic stimulus package signed into law last February. Given the number of consumers taking advantage of the Cash for Clunkers rebates, however, adding another $1 billion to $1.5 billion to the $3 billion already allocated might not keep the program going for more than another few weeks. When making this decision, timing is a huge consideration. This program may end before everyone wishing to participate has the opportunity.