More money poured down the insolvent car companies drain:
‘Cash-for-Clunkers’ Bill Passes in Bid To Revive Car Sales
Trade-In Plan Set for Obama’s Signature
The Senate approved a $1 billion program yesterday to give vouchers to consumers who trade in their gas-guzzling clunkers for more fuel-efficient models — a move that dealers hope will revive slumping auto sales.
You know it’s pork when a bill is attached to a war funding bill and the dealers, the unions and the bailedout companies were the ones lobbying for it.
As it turns out, Neo-neocon has been looking into it, and what it comes down to is, Let’s stick it to the gas-frugal:
For example, I drive a rather old car: a 1998 (or is it 1997? I never can remember) Toyota Corolla. When I look up my car (assuming it’s a ‘98 in good condition) at the Kelley Blue Book site, I find that its trade-in value is a whopping $2,175. If I could qualify for the new program, that would mean I’d get somewhere between $1325 and $2325 extra to go towards my new purchase.
But alas and alack, my little Toyota already gets good mileage, well over the 18 miles per gallon necessary to qualify. I never forgot the gas shortages of the Carter years, and it seemed silly not to get a vehicle that conserved fuel.
And so I’ll have to do without my government largesse. This is a familiar experience for me—I keep waiting and waiting for my piece of the Obama pie. I didn’t get a sub-prime mortgage, nor did I max out on my credit cards, so I’m stuck supporting those who did.
More government pork, more government folly.
I can only assume that one of the unintended consequences is that the market for used parts will become dear as instead of dismantling the cars will be shredded. Plus one man’s clunker is a first car for a college student or an immigrant.
The information I have been able to get so far is confusing when it comes to light-duty trucks. Has anyone figured out if you can trade a truck in for a car, or does it have to be a truck for a truck. Dealers have no clue. I have an older truck I use strictly for dump runs that I would trade in for a car, but would keep it if I had to buy another truck.
Most cars that are currently donated to charity will now be eligible for a $3500 or $4500 voucher under the cash for clunkers program. Since the tax deduction for donating a car is only $500 or what the car sells charities won’t be able to compete with the program and charitable car donation will end. A better idea is to just change the amount a person can deduct for donating their car back to the book value. That way every car is eligible, the government doesn’t have to spend $4 billion of our dollars giving away vouchers and trying to administer a program that is way too convoluted!
I don’t qualify because my car already gets good gas mileage. But my dad swears by the car buying process here:
http://excarsalesman.typepad.com
I have a feeling dealers are going to automatically increase prices because of the increased demand (artificial) for great MPG cars. So the thousands of savings from this bill for consumers is not entirely accurate.
With the price increase, I’m certain some markets you’ll come out even as if they never offered this voucher. It is poorly written legislation.
The Cars For Clunkers legislation is actually very focused and is only available for a limited four month time frame. It offers participants the opportunity to trade in certain older cars for certain other new ones. Unfortunately, many cars do not qualify for the program and therefore are still ideal for the ‘traditional’ car donor option. Such non-qualifying cars let people give their cars to non-profit organizations who help people with many different kinds of needs, like supporting youth organizations or our older folks or to help promote the arts and health research.
Help yourself with the Cash for Clunkers program if you qualify or if you don’t qualify or would like to help others, give your “clunker” to charity and take a tax write-off!
Here are 400 not-for-profit organizations that can always benefit from your ‘clunker’ or unneeded vehicle. To donate your car, just click on the link to the charity on the web pages below.
http://www.donatecarusa.com/charities/full_list
http://www.donatecarusa.com