« Wizbang Weekend Caption Contest™ | Main | Obama Charged White House Guests for Meals »

Cash For Clunkers stalls

According to the Wall Street Journal, the government's "Car Allowance Rebate System" ("cash for clunkers") program, which reimburses new car buyers up to $4500 toward the cost of a new fuel-efficient vehicle if the buyer trades in their old vehicle as part of the purchase arrangement, is in trouble:

A White House official said, "We are working tonight to assess the situation facing what is obviously an incredibly popular program. Auto dealers and consumers should have confidence that all valid [cash-for-clunker] transactions that have taken place to-date will be honored."

Lawmakers are discussing with White House officials where to find funding -- including possibly tapping the government's Troubled Asset Relief Program, or TARP, a congressional aide said.

The clunkers program, which offers rebates of up to $4,500 to consumers who trade in old vehicles and buy new, more fuel-efficient models, began July 24 and sparked a surge in car sales.

"It was an absolute success," said Michael J. Jackson, chief executive of AutoNation Inc., the U.S.'s largest chain of auto dealerships. "There's a very compelling case the government should put more money into it. It's a great stimulus to the economy."

Congress had expected the $1 billion set aside for the rebates to last several months and set up the program to expire Nov. 1.

Obviously this was stunning to Washington DC -- a "stimulus" program that actually worked, and that actually required money to be paid out to the private sector, all before 2010!

But the program turned out to be as confusing as it was popular. Rebates were made retroactive to July 1, and many car dealers began offering the $4500 credit earlier than last Friday. But the government has been slow to process dealer reimbursements, leaving them strapped for cash. Also, new EPA fuel economy ratings made 78 models that qualified for the rebates last Friday suddenly ineligible for the program this week. (At the same time, 86 more models became eligible for the program.)

Let's see ... confusion, slow reimbursements from the government, last-minute eligibility rules changes ... nah, that would never happpen with government health care programs.


TrackBack

TrackBack URL for this entry:
/cgi-bin/mt-tb.cgi/36414.

Listed below are links to weblogs that reference Cash For Clunkers stalls:

Comments (33)

And why wouldn't it be popu... (Below threshold)
J.R.:

And why wouldn't it be popular. It's like someone off the street giving you a check for $4500 to go buy a new car! It's ridiculous given the dismal fiscal condition of our government. This is a program that never should have come to fruition.

A preview of Obamacare.... (Below threshold)
P. Bunyan:

A preview of Obamacare.

How about instead trading i... (Below threshold)
Flu-Bird:

How about instead trading in this entire bunch of no good tax and spend liberals on real bunch of those who pot the citizens first instead of their own personal wacky ideas

The program was wildly succ... (Below threshold)
The Obvious One:

The program was wildly successful...

damn! Don't you hate it when that happens?

Obviously, in light of today's news that the recession is over the need to continue this program is in question.

The program was wildly s... (Below threshold)
J.R.:

The program was wildly successful...

damn! Don't you hate it when that happens?

Successful at doing what? I think you meant to say it was wildly popular, which does not make it a success. I don't see how the means justify the ends with this program so I question you categorizing it as successfull.

Healthcare reform info:... (Below threshold)
Adrian Browne:
""It was an absolute suc... (Below threshold)
The Obvious One:

""It was an absolute success," said Michael J. Jackson, chief executive of AutoNation Inc., the U.S.'s largest chain of auto dealerships."

It sold cars.

That's what it was designed to do.

Are you telling me that Republicans, after 8 years of WH failures, can't recognize a successful government program when they see it?

MikeObviously the ... (Below threshold)
HughS:

Mike

Obviously the troll didn't pick up on your point as to why it was popular or the efficacy of returning money directly to the private sector.

TOO and Adrian:The... (Below threshold)
epador:

TOO and Adrian:

The point is that this relatively modest program RAN OUT OF MONEY just a few months into operation. They are essentially OUT OF BUSINESS. But go ahead and look at the shiny objects, divert attention to the NEXT big program that is destined to run out of money (maybe before it begins) and pat yourselves on your backs for how smart and right (I mean left) you are.

Good thing our Revol... (Below threshold)
Adrian Browne:


Good thing our Revolutionary forefathers kept fighting the modest battles even though they RAN OUT OF MONEY.

" It sold cars.Tha... (Below threshold)
Les Nessman:

" It sold cars.

That's what it was designed to do. "

Yep, and damn the costs, full speed ahead.
The country's in the very best of hands.

Tens of thousands of perfectly good, solid cars sent to the scrapyard along with the clunkers. I know a lot of people around here who are struggling to get by and a good $4500 car would help them. But they don't have a chance to buy these used cars because they are now scrapped.

'reduce, reuse, recycle' the 'green' slogan says. So what happened to 'reuse'?

The program did sell cars. ... (Below threshold)
GarandFan:

The program did sell cars. For a brief period. Now what? More money so the 'car sales' can continue? If so, for how long? (Gotta keep that gravy train coming). Any followup being done? Not to rain on the liberal parade, but the thrust had also been to get rid of inefficient (by today's standards) cars. What kind of cars are being turned in? Makes, models and years please. DEFAULTS! Remember Barney Frank wanting all those new homeowners....the one's who later could not afford the homes they purchased? How many "new" car owners will default several months down the road on that neat $24K new car. Default because they were driving an old clunker because they could not afford a new car to begin with. Even with a $4.5k handout from the government.

What's happening to the clunkers? Dealers are supposed to destroy the engine and crush the cars. Well dealers don't do that. Recyclers do. Are they getting cars for 'free' from the dealers? They have initial costs before they sell the car as scrap metal. They have to pull all the fluids, and all the 'fluff' (upholstery, dashboards, plastic, etc some of which requires special hazmat handling). Any recycle facility will tell you that their main income derives from the selling of usable parts, scrap metal prices (which are currently down) are secondary. If they are required TO CRUSH everything, will they make their costs. Because if they don't, THEY WON'T CRUSH 'EM. Or will Barry just decide this is another business the government needs to get into?

Yeah, libs, "sounds like a success", but I prefer a followup to INSURE the program met stated goals. REALITY. So don't pat your god Barry on the back quite yet.

"Obviously the troll did... (Below threshold)
Oh No You Don't:

"Obviously the troll didn't pick up on your point as to why it was popular or the efficacy of returning money directly to the private sector."

Wow, you guys are losing it - big time.

Reducing the cost of the car to the consumer by $4500 IS putting money directly in the hands of the private sector. It's handing the car buyer a $4500 check to use as a down payment on the car.

"The program did sell ca... (Below threshold)
Oh No You Don't:

"The program did sell cars. For a brief period. Now what?"

MORE. There's talk of adding another $2 billion.

It's working - which will make Republicans hate it even more.

" Reducing the cost of the ... (Below threshold)
Les Nessman:

" Reducing the cost of the car to the consumer by $4500 IS putting money directly in the hands of the private sector. It's handing the car buyer a $4500 check to use as a down payment on the car. "
.

" MORE. There's talk of adding another $2 billion. "

Wow. Now we've moved on to just blatant crowing about 'gimme gimme gimme', said out loud and proud.

More welfare. Take from the taxpayer and give to someone else. More corporations and now more citizens on the public tit.

Keep talking. Tell us more.

"Let's see ... confusion, s... (Below threshold)
Texan99:

"Let's see ... confusion, slow reimbursements from the government, last-minute eligibility rules changes ... nah, that would never happpen with government health care programs."

As Glenn Reynolds remarked, "Not to worry. I'm sure they'll do a better job with your prostate."

Bottom line - The governmen... (Below threshold)
TOhio:

Bottom line - The government can't even administer a program that simply requires turning in an old car for money to buy a new one.

Their projections were wrong. They didn't know basic business forecasting and contingency planning. The government can't run anything properly.

This is an omen folks. Cash for Clunkers collapsing is a precursor to what will happen to health care if we let Obama-Emmanuel-Pelosi-Reid and their minions take control of it.

"Lawmakers are discussin... (Below threshold)
Oyster:

"Lawmakers are discussing with White House officials where to find funding -- including possibly tapping the government's Troubled Asset Relief Program, or TARP, a congressional aide said."

I wondered who the government was going to bail out next with TARP money. I didn't know it would be the government.

I'd like to know who is buying these cars and what cars they're buying.

I love how the lefties thin... (Below threshold)
WildWillie:

I love how the lefties think this money is "free".

How can the recession be over? 4 months ago, Obama said it will take a long time to get out of it. He wouldn't have lied to take advantage of the taxpayers would he? ww

Interesting seeing you cons... (Below threshold)
The Obvious One:

Interesting seeing you conservatives with your fingers in their ears "LA LA LA-LA LA - It's not working, It's not working - La La La"

Do you guys sit in a circle while you comment or is this group "freeform"?

It's so successful they are thinking of expanding it. How many Republicans will vote against the expansion?

A $4500 tax cut would be a ... (Below threshold)
Stan25:

A $4500 tax cut would be a helluva lot better. No regulations on how to spend it and what on. That would do more for the economy than a stupid "Charlie Foxtrot" that Government Motors and Chrysler are doing at the behest of "Walks On Water" and his minions.

Next program will be giving... (Below threshold)
Wayne:

Next program will be giving home buyers $20,000 "free" money to buy houses. I bet that fund will quickly be "successful" \exhausted quickly as well. How about the government with its "free money" pay for 10% of a gas purchase? Again I bet that fund will quickly be "successful" \exhausted quickly as well. Excuse me for being derogatory but how can anyone be that stupid.
The end result is the government is forcing taxpayers to give their money away.

What's another 2 billion wh... (Below threshold)
J.R.:

What's another 2 billion when our deficit is already in the trillions. Who cares, we'll just print more money right?

I love how people are calling this a success. As if no one would want $4500 with no strings attached to buy a new car. And for those calling this a success, what was achieved? What is the desired goal here and is it worth it and why?

Where My 4500?... (Below threshold)
914_ The Obvious Question!:

Where My 4500?

TOo - Where do you think th... (Below threshold)
JLawson:

TOo - Where do you think that $4500 per car is coming from?

Here's a hint - how much did YOU pay in income tax last year? I figure between the spouse and I, we paid for 4 cars.

Think I'll get a 'thank you' note from the buyers?

Thanks Lawson... (Below threshold)
ODA315:

Thanks Lawson

"Cash for clunkers stalls"<... (Below threshold)
914_62 not quite as obvious:

"Cash for clunkers stalls"

A metaphor for the Obama administration thus far.

Oblivious One,The ... (Below threshold)
Upset Old Guy:

Oblivious One,

The recession is not over, and I am sorry to have to say that. I'm not sorry, however, to get to inform you. The U.S. economy is still contracting, -1% in the just released report.

In case you can't understand a simple number try this here is a simple question for you in the form of a grade school question. You're hemorrhaging, bleeding out. Your blood loss is at the rate of 10% of your total blood volume (at the start of the hemorrhage event) per minute. Suddenly your blood loss slows to the rate of 5% per minute. Are you still bleeding to death?

If you want to take your time and think it over for a while that's fine with me.

You're welcome, ODA315. Ho... (Below threshold)
JLawson:

You're welcome, ODA315. Hope you don't mind me saying this, but I'd rather have had the $4500 myself than help pay for your new ride... ;)

I have a better idea, pay m... (Below threshold)
epador:

I have a better idea, pay me to NOT DRIVE my clunker. (Hey, we still pay farmers not to grow certain crops, right?) I'll keep it locked in the garage for emergencies. I promise.

"Where My 4500?... (Below threshold)
JLawson:

"Where My 4500?

914_ The Obvious Question - check with The Oblivious One. Tell him you're owed, I'm sure he'll cough it right up.

Interesting seeing you cons... (Below threshold)
GarandFan:

Interesting seeing you conservatives with your fingers in their ears "LA LA LA-LA LA - It's not working, It's not working - La La La"
It's so successful they are thinking of expanding it. How many Republicans will vote against the expansion?

Hey Obvious One, is your head so far up your anal cavity that you can't see the problem? How "old" are the "old" cars? Yeah, you see pictures of junkers in the MSM. What are dealers seeing? And in 6 months, we find out the GREEDY dealers were selling to people who could not afford a new car, what then?

Will you be willing to pull your head out of your ass then? Or will you still be calling this a 'success'?

If the government is going to throw out another 2 billion, I'D SUGGEST THE STUPID BASTARDS CRUNCH THE NUMBERS ON THE 1ST BILLION. Awful hard to wash dried egg off your face while you're eating crow.

Wheres My 4500 Oblivious... (Below threshold)
914_62:

Wheres My 4500 Oblivious One?? I'll expect a cashiers check by no later then 3pm Tuesday!




Advertisements









rightads.gif

beltwaybloggers.gif

insiderslogo.jpg

mba_blue.gif

Follow Wizbang

Follow Wizbang on FacebookFollow Wizbang on TwitterSubscribe to Wizbang feedWizbang Mobile

Contact

Send e-mail tips to us:

tips@wizbangblog.com

Fresh Links

Credits

Section Editor: Maggie Whitton

Editors: Jay Tea, Lorie Byrd, Kim Priestap, DJ Drummond, Michael Laprarie, Baron Von Ottomatic, Shawn Mallow, Rick, Dan Karipides, Michael Avitablile, Charlie Quidnunc, Steve Schippert

Emeritus: Paul, Mary Katherine Ham, Jim Addison, Alexander K. McClure, Cassy Fiano, Bill Jempty, John Stansbury, Rob Port

In Memorium: HughS

All original content copyright © 2003-2010 by Wizbang®, LLC. All rights reserved. Wizbang® is a registered service mark.

Powered by Movable Type Pro 4.361

Hosting by ServInt

Ratings on this site are powered by the Ajax Ratings Pro plugin for Movable Type.

Search on this site is powered by the FastSearch plugin for Movable Type.

Blogrolls on this site are powered by the MT-Blogroll.

Temporary site design is based on Cutline and Cutline for MT. Graphics by Apothegm Designs.

Author Login



Terms Of Service

DCMA Compliance Notice

Privacy Policy