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'Cash for Clunkers' Program Working in RI
Topic Started: Aug 6 2009, 08:01 PM (381 Views)
Dax
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http://www.projo.com/news/content/CLUNKERS...21.3c1a98f.html

From the Providence Journal:

Quote:
 
America is downsizing courtesy of the “cash for clunkers” program.

Indeed, the government’s car trade-in rebate program might as well be called Bucks for Trucks if figures compiled by the government are anything to go by.
Extra

Most of the top 10 vehicles traded in since the program kicked off on July 27 were gas-guzzling pickups, or SUVs and minivans, both of which are considered light trucks, according to the National Highway Traffic Safety Administration.

Meanwhile, 9 of the top 10 new vehicles being purchased were small, fuel-efficient passenger cars. The only exception was the Ford Escape, a compact crossover SUV.

Jack Perkins, executive director of the Rhode Island Automobile Dealers Association, said the program had exceeded expectations in two major ways.

“It’s stimulating demand beyond expectations and the vehicles people are purchasing are getting greater gas mileage than expected,” he said.

Michael Grieco, vice president of Metro Honda in Johnston, said most of the cars being traded in were SUVs. He said he had about 100 clunkers on his lot, 75 percent of which were gas-guzzlers; 75 percent of the new cars being sold were small passenger cars.

General sales manager Mark Grenga added that the majority of new owners qualified for the $4,500 rebate because the difference in the mileage between their clunker and their new car was at least 10 miles per gallon.

“There are over 80 that we’ve done,” said Ron Mandeville, general sales manager at Hurd Auto Mall in Johnston, adding, “The majority were really bad gas mileage cars.”

He also said most customers were driving away in passenger cars rather than trucks. “The Malibu, the Cobalt, all the small cars,” he said.

At the same time, some customers were qualifying for the $4,500 rebate even though they were driving away in a pickup.

Ryan and Linda Bourque, of Plainfield, Conn., were at Hurd to pick up their 2010 Chevrolet Silverado 1500, which Ryan said gets 20 miles to the gallon.

But he had traded in his 1988 Chevrolet Cheyenne 1500, which he estimates gets 10 miles to the gallon, for the rebate.

“It’s 21 years old and never a problem,” he said of his old truck, which had 170,000 miles on it. He said he would never have traded it in if it had not been for the clunker program.

Mandeville said that the program had been so successful that he was not only running out of inventory but the government appeared to be overwhelmed by the paperwork, which had resulted in delays in getting paid.

Cash for Clunkers, officially known as the Car Allowance Rebate Systems (CARS) program, provides a rebate of up to $4,500 to trade in an older, gas guzzling vehicle for a new, more fuel efficient one. A key part of the deal involves the clunker being scrapped.

The program has been viewed as an all-round win for auto manufacturers and dealers as well as the consumer and the environment, let alone the economy.

And it has been successful with nearly 160,000 vehicles traded in as of Tuesday morning for a total payout of $650 million, according to NHTSA.

It was supposed to have lasted until Nov. 1, but with the allotted $1 billion seen running out in a matter of days, the House recently passed a measure to add $2 billion to the program, and the Senate is expected to pass it sometime this week.

Perkins said he was not surprised that the 4-wheel drive Ford Explorer topped the list of clunkers.

“The Explorer was one of the top SUVs for sale in its day,” he said. “It makes sense that it’s one of the top ones being traded in.”

Indeed, the Explorer, which Ford introduced in 1990, was “the catalyst that started America’s love affair with the SUV,” according to Edmunds.com, a leading Web site focusing on the auto industry.

It noted that during “much of the ’90s, Ford was consistently selling more than 400,000 units a year.” However, sales fell off in the early years of this century after a controversy involving certain factory-fitted Firestone tires that tended to fail, causing rollovers.

“It’s not surprising,” agreed Bob Tasca III of Tasca Ford in Cranston and Seekonk, noting its popularity in the 1990s.

Older Explorers are not only plentiful, but with their V8 engines getting less than 15 miles to the gallon, they almost exactly fit the definition of a clunker: Less than 25 years old and getting less than 18 miles to the gallon.

Along with minivans, Sport Utility Vehicles, which are built on light truck chassis, are considered trucks by the government, which means they are regulated less strictly than cars in terms of fuel economy and emissions.

The Explorer was followed by the Ford F150 2-wheel drive pickup on NHTSA’s list of traded-in vehicles. The Jeep Grand Cherokee, the Jeep Cherokee and the Dodge Caravan/Grand Caravan rounded out the top five.

Meanwhile, the Toyota Corolla compact heads the list of new vehicles that folks are buying in place of their clunkers, according to figures from the Transportation Department. More Corollas have been sold than any other car in history.

The Corolla topped the Ford Focus, which had been leading the list. Ford introduced the compact Focus in 1999 and it has been proved to be a true world car, selling successfully on both sides of the Atlantic as well as in Asia.

Brand recognition soared last May after the 2009 Focus debuted on American Idol in front of millions.

Next up was another top seller, the Honda Civic compact, followed by the iconic gas-hybrid, the Toyota Prius, and the Toyota Camry midsize family sedan. The compact crossover Ford Escape, which is the only SUV to make the list of top 10 new vehicles, ranked sixth.

It was followed by the compacts Hyundai Elantra and Dodge Caliber, the five-door hatchback subcompact Honda Fit, which has also proved successful outside the U.S. as the Honda Jazz, and the compact Chevrolet Cobalt.

Bloomberg.com cited figures showing that General Motors had the most sales with 18.7 percent of the cars purchased. Toyota followed with 17.9 percent and Ford was third with 16 percent.

While Ford Explorers top the government’s list of traded-in vehicles, Tasca said his dealerships had been taking in all manner of vehicles.

“Brand X,” he said. “The only trend is that they are all clunkers.”

Chris Hurd, president of Hurd Auto Mall, also said he had seen no one vehicle dominate the list of clunkers coming in to his dealership.

“I’ve seen everything coming in,” he said. “It’s nondenominational, so to speak. (GMs,) Fords, Chryslers, foreign, there’s no trend.”

He said a number of Ford Explorers had been traded in, but not enough to make a trend.

“Ten years ago there were a lot of Explorers and we’ve seen some,” he said.

As for new vehicles moving off his lot, he said the Chevrolet Cobalt was popular, along with the Chevy Malibu and Chevy HHR.

“It’s been a bonanza,” Tasca said. “I know Europe had a taste of this but it’s an absolute success. It’s doing exactly what it was planned to do.”

Tasca said about 100 clunkers had been traded in since the program started just seven days ago. “One hundred clunkers is big-time business,” he said.

Similar programs have been introduced across Europe, with the largest in Germany, where it was instrumental in bumping sales as much as 40 percent in March compared to a year ago.Senate set to vote

•The Senate reached a deal on saving the dwindling “cash for clunkers” program late Wednesday, agreeing to vote on a plan that would add $2 billion to the popular rebate program and give car shoppers until Labor Day to trade in their gas-guzzlers for a new ride.

 Following lengthy negotiations, Senate Majority Leader Harry Reid said Democrats and Republicans had agreed to vote on the plan Thursday, along with a series of potential changes to the bill, which was passed by the House last week.

 Reid has said Democrats have enough votes to approve the measure and reject any changes that would cause an interruption in the rebates program.

 The government said Wednesday that more than $775 million of the $1 billion fund had been spent, accounting for nearly 185,000 new vehicles sold. (AP)How it works

To be eligible for the “cash-for-clunkers” program, the vehicle you’re trading in:

•Must be less than 25 years old on the trade-in date.

•Generally must get 18 mpg or less.

•Must have been registered and insured continuously for the full year preceding the trade-in.

Here’s how to determine how large a credit you’re eligible to receive:

•If your new vehicle has a combined gas mileage that’s between 4 and 10 mpg better than the vehicle you’re trading in, you’re eligible for a $3,500 credit.

•If your new vehicle has a combined fuel economy that’s at least 10 mpg better than the vehicle you’re trading in, you’re eligible for a $4,500 credit.

For further information about the program, go to the Department of Transportation’s Web site at www.cars.govWhat they’re trading in

Here’s a list of the top 10 vehicles being traded in under the CARS program.

1. Ford Explorer 4WD

2. Ford F150 Pickup 2WD

3. Jeep Grand Cherokee 4WD

4. Jeep Cherokee 4WD

5. Dodge Caravan/Grand Caravan 2WD

6. Chevrolet Blazer 4WD

7. Ford Explorer 2WD

8. Ford F150 Pickup 4WD

9. Chevrolet C1500 Pickup 2WD

10. Ford Windstar Van

Source: National Highway Safety AdministrationWhat they’re buying

Here’s a list of the top 10 vehicles being purchased under the Car Allowance Rebate System, along with their estimated city and highway gas mileage.

1. Toyota Corolla (25-30 mpg)

2. Ford Focus (27-28 mpg)

3. Honda Civic (24-42 mpg)

4. Toyota Prius* (46 mpg)

5. Toyota Camry (23-34 mpg)

6. Hyundai Elantra (26-28 mpg)

7. Ford Escape (20-32 mpg)

8. Dodge Caliber (22-27 mpg)

9. Honda Fit (29-31 mpg)

10. Chevy Cobalt (25-30 mpg

* Hybrid vehicle

Source: DOT, EPA


It is important to note that Rhode Island has the second poorest economy in the United States, second only to Michigan. While I have not heard anything regarding the success or failure of the program in other states, it seems reasonable that if it's working in Rhode Island, it's probably working just as well, if not better elsewhere.
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zzdusty
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Sadly we must end the program due to the complaints from the Republicans about debt though a lot of that debt came from their brilliant dictator. :rolleyes:
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Dax
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Yep. Almost exactly half of it, in fact.
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zzBugs
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Lol...2 billion...i mean 3 billion dollars is HARDLY comparable to what the Republicans left us with.

The only problem I have with the cash for clunkers is this. If you note, that four out of those ten cars are American made. Two Ford, one Chevy, and one Dodge.

I think it should be a program primarily aimed to get Americans to drive cars that are fuel efficient, AND American made. 3 billion dollars is a drop in the bucket compared to what has been spent to keep Chrysler and GM alive. Might as well have a program that helps insure that.

I think it should be up to like...4,500 or 5,000 dollars for an American made car, and up to 4,000 dollars for a foreign made, or foreign owned car. It's a bit of a pay back for the tariffs that are levied on American cars in other countries.
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Dax
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PROTECTIONIST!
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zzBugs
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Lol.
Well you know how it is mate...

I mean yeah sure, it is. But I see it as alot like Iraq. We got involved in that mess known as Chrysler, and the tactical blunder of GM, so we might as well go full throttle with trying to bolster sales, and all that other junk, so that they CAN be something, sooner.

I also note something else about that trend I suggested. TWO of those cars are Ford, one of them a...car (number 2 spot) and the other is a light utility vehicle as I call them. That trumps GM and Chrysler. Go figure who needed the bailout. Dumbasses lol.
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United States [Sel]
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Cash for Clunkers is the most retarded and myopic thing I have ever seen. They should have put the money into upgrading mass transit.
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zzcrackzilla
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I like the idea. I think it'll do some good - and sure, the money could have gone to public transportation... but do you really think it'd have the support? People would be pissed that we're spending money on busses instead of (insert economic crap here), or healthcare.

It's a good step, at least. And it's working.
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United States [Sel]
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It is not a good step. It is a farce and a sham and serves no purpose whatsoever. As if we need more cars...

It is not even implemented well. You get some money for upgrading a few mpg and $1000 more for like 3 more mpg.

A real program would offer only for a substantial upgrade to above like 30.
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Recon
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Lol and Schwer slammed me for doing this in game....
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Head of Government (Prime Minister): Hamadi Jebali (Ennahda)
Population: 10.6 Million (2012 est.)
GDP (Real): $44bn (2012 est.)
Organizations: Arab League (AL), Arab Maghreb Union (AMU), African Union (AU), International Criminal Court (ICC), International Monetary Fund (IMF,) Non Aligned Movement (NAM), United Nations (UN) & World Trade Organisation (WTO).
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Max
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I know this sounds radical, but... I think Americans should stop buying so much shit; even if it is 'hybrid' cars. As if that makes a difference to the repo man when he comes to collect.
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I watched them strap him into the seat and shut the door. He might of looked a bit nervous about it but that was about all. I really believe that he knew he was going to be in hell in fifteen minutes. I believe that. And I've thought about that a lot. He was not hard to talk to. Called me Sheriff. But I didn't know what to say to him. What do you say to a man that by his own admission he has no soul? Why would you say anything? I've thought about it a good deal.
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Recon
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France [Moorington
 
,07 Aug 2009 09.16.15] I know this sounds radical, but... I think Americans should stop buying so much shit; even if it is 'hybrid' cars. As if that makes a difference to the repo man when he comes to collect.

America is going to export in the future. Credit isnt the future..... Thats bad for the workforce. :(
[align=center]Head of State (President): Moncef Marzouki (Congress for the Republic)
Head of Government (Prime Minister): Hamadi Jebali (Ennahda)
Population: 10.6 Million (2012 est.)
GDP (Real): $44bn (2012 est.)
Organizations: Arab League (AL), Arab Maghreb Union (AMU), African Union (AU), International Criminal Court (ICC), International Monetary Fund (IMF,) Non Aligned Movement (NAM), United Nations (UN) & World Trade Organisation (WTO).
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zzskylar
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Bugs


Sel

Under your criteria, Cash for Clunkers would allow people to buy... 29 cars:

  • 2010 Toyota Prius
  • 2009 Toyota Prius
  • 2009 Honda Civic Hybrid
  • 2010 Honda Insight
  • 2010 Mercury Milan Hybrid*
  • 2009 smart fortwo
  • 2010 Lexus HS Hybrid
  • 2009 Toyota Camry Hybrid
  • 2009 Nissan Altima Hybrid
  • 2009 Volkswagen Jetta TDI
  • 2010 Toyota Camry Hybrid
  • 2009 Mercury Mariner Hybrid*
  • 2009 Ford Escape Hybrid*
  • 2009 MINI Cooper Convertible
  • 2010 Mercury Mariner Hybrid*
  • 2009 Ford Escape Hybrid*
  • 2010 Mercury Mariner Hybrid*
  • 2009 Toyota Yaris Sedan
  • 2009 Mazda Tribute Hybrid
  • 2009 Lotus Exige
  • 2009 Honda Fit
  • 2009 Toyota Corolla
  • 2009 Chevrolet Aveo*
  • 2009 Chevrolet Aveo5*
  • 2009 Kia Rio
  • 2009 Kia Rio5
  • 2009 Pontiac G3*
  • 2010 Toyota Corolla
  • 2010 Chevrolet Aveo5*
  • 2010 Chevrolet Aveo*
  • 2010 Lexus RX Hybrid

* designates automobiles that would qualify under Bugs's criteria.

Maybe there was something more to why they only wanted a 10 mpg improvement...


Crack

Yes.


Moorington

There was an interesting statistic I saw in the Economist a few months ago. It illustrated American spending versus their income. in September 2008, Consumption was 130% of Income. That's [obviously] unsustainable, so I see your point; however, we can't stop buying altogether, because after all approximately seventy percent of US GDP is based on consumption.


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Max
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Obviously I'm not advocating any sort of forcible 'consumption stop,' in which the government delegates the task of stopping most large purchases to the EPA in exchange for a smaller trade imbalance, debt, with a larger emphasis on the 'essentials' like paying bills. Which would all be good, don't get me wrong, but instead of that course or the course we are on today - how about the government does nothing?

Trying to make the economy recover, by artificially lowering the costs of automobiles or any good for that matter, is honestly self-destructive. If we merely allow market mechanisms produce cheaper, hybrid, cars by themselves - then not only would we be millions (billions) more in the black, we would also have a sustainable economic atmosphere.
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I watched them strap him into the seat and shut the door. He might of looked a bit nervous about it but that was about all. I really believe that he knew he was going to be in hell in fifteen minutes. I believe that. And I've thought about that a lot. He was not hard to talk to. Called me Sheriff. But I didn't know what to say to him. What do you say to a man that by his own admission he has no soul? Why would you say anything? I've thought about it a good deal.
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Dax
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France [Moorington
 
,07 Aug 2009 20.01.26] Trying to make the economy recover, by artificially lowering the costs of automobiles or any good for that matter, is honestly self-destructive. If we merely allow market mechanisms produce cheaper, hybrid, cars by themselves - then not only would we be millions (billions) more in the black, we would also have a sustainable economic atmosphere.

We've been interfering in the economy for so long now that if we adopted a more stringent laissez-faire strategy to the American economy, things would get immeasurably worse before they got better, even if it would pay off in the long run.

That, my friend, does not win elections.
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Mexico (Hubris)
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I say fuck it.

Want that car? Steal it, nothing's stopping you.. except of course those chase hungry cops, but we all know they can't really harm you. (Not like they're also gun fight hungry, you know..)
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,06 Aug 2009 21.34.14] Lol...2 billion...i mean 3 billion dollars is HARDLY comparable to what the Republicans left us with.

The only problem I have with the cash for clunkers is this. If you note, that four out of those ten cars are American made. Two Ford, one Chevy, and one Dodge.

I think it should be a program primarily aimed to get Americans to drive cars that are fuel efficient, AND American made. 3 billion dollars is a drop in the bucket compared to what has been spent to keep Chrysler and GM alive. Might as well have a program that helps insure that.

I think it should be up to like...4,500 or 5,000 dollars for an American made car, and up to 4,000 dollars for a foreign made, or foreign owned car. It's a bit of a pay back for the tariffs that are levied on American cars in other countries.

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zzskylar
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Jordan [Hubris
 
,07 Aug 2009 22.24.44] I say fuck it.

Want that car? Steal it, nothing's stopping you.. except of course those chase hungry cops, but we all know they can't really harm you. (Not like they're also gun fight hungry, you know..)

+1

Just make sure that you steal a Hyundai though... after all, they all come with a full tank of gas. XD
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