I posted this in 'Off-topic' but I thought I'd post it here as well. I was watching the evening world news, and there was a segment on 'Cash for clunkers' program. And at the end they showed a somewhat odd incident. When a dealership takes in a 'clunker' and it is a done deal, a shop person pours into the crankcase a gallon of 'Clunker-Killer' which is some form of chemical that renders the engine totally useless as far as the future of it is comcerned. So if you need an early Gen-2 or Gen-3 engine, heads or block, our government has found once again to give us a shot in the dark?

 

The good thing is, they have already ran out of money for the program. But I heard more of this taxpayer funded program is coming.

Whats another $1 Billion added to the deficit at this point?

 

I would think you could disassemble it and rebuild. Unless it actually damages the metal

 

We're no longer in Micro money math, we're in Mega money math giveaways!

 

I think the rules are 1984 and up cars.Maybe c-4's? no loss.

 

1 billion 1 trillian these numbers used to be referred to as astronomical numbers, given current circumstances I think we should start referring to them as economical numbers

 

Seems like I read it was 91 or newer and 18 MPG or worse. So most C4's are exempt unless the get 18 or worse. 19 MPG and you do not qualify for the voucher.

I don't know all the details, and I have not checked into it, but I would also think that in order get the voucher you should spend the money on an american company's car.

The problem I see with the whole mess is, people are trading in cars and trucks that still run and work that they owe nothing on, for something they owe $20-25k+. Not that I have any room to talk, as I owe for my C5 but it beats 18 MPG all day, every day.

 

Trying to get some buying going on and take a swing at a greener environment at the same time, good idea, maybe bad execution?

 

Thanks for your post. I knew that "clunkers" traded in under the program had to be scrapped, and could not be resold as running cars. I didn't know that the dealer had to poison the cars on the spot to make sure they didn't escape.

I really hated this program when it was announced, because to me it just seemed like another expensive subsidy for the auto industry. It has proved to be wildly popular, so the politicians are loving it and are adding funding to extend the program. Why wouldn't it be popular? Why not just give away a few million cars to people driving old inefficient cars? If $4500 is a good thing, isn't $25,000 a better thing? That way you would have more control over what people were driving. With the vouchers, people can buy trucks that get only slightly better mileage, or (gasp!) they could buy foreign cars. If the government gave people the cars they could give everyone a Chevy Malibu which would help domestic auto production, keep all those UAW folks employed and keep the govt owned company (GM) running.

 

Here are the rules for the new vehicle:

If you want to buy a car, you can scrap most any car, truck, SUV or van. If the fuel economy improvement is 4 mpg or greater (i.e. up to 22mpg), the credit is $3,500. If the fuel economy improvement is at least 10 mpg, (i.e. up to 38 mpg) the credit is $4,500. (The new car has to have a minimum combined fuel economy of 22 mpg.)
If you want to buy an SUV, minivan or non-full-size pickup truck, you can scrap most any car, truck, SUV or van. If the fuel economy improvement is 2 mpg or greater, the credit is $3,500. If the fuel economy improvement is at least 5 mpg, the credit is $4,500. (The new car has to have a minimum combined fuel economy of 22 mpg.)
If you want to buy a full-size pickup or large van, you have to scrap one or the other. If the fuel economy improvement is 1 mpg or greater, the credit is $3,500. If the fuel economy improvement is at least 2 mpg, the credit is $4,500. Alternately, you can trade a qualifying "work truck" for a $3,500 credit. (The minimum combined fuel economy for the new car is 15 mpg.)
If you want to buy a work truck, you must trade-in a qualifying work truck for a $3,500 credit.

 

You can't scrap most any car.... Your car must have an EPA-estimated combined fuel economy of 18 miles per gallon or less and it must be less than 25 years old.

So if your old car was rated at 19 mpg or 20 mpg when new, it is not eligible... even if it only gets 15mpg today.

 

yup

Here are the rules for the "trade-in" vehicle:

Must be in drivable condition
Must have been continuously insured and registered in the same owner's name for the one-year period immediately prior to the trade in
Must have been manufactured not earlier than 25 years before the date of trade in (some 1984 and 1985 model year vehicles won't qualify; see the manufacturing date on the driver's side door or door frame)
Must have a combined fuel economy value of 18 miles per gallon or less (work trucks don't have a maximum fuel economy requirement, but must be model year 2001 or older)

 

I'm just bitter 1 year ago donated to charity our 92 Volvo Wagon, 20mpg so not eligible anyway. 2 years ago I donated our 93 Saab 9000, 18 mpg combined so would be eligible! Currently own a 97 lexus ES300, 170k miles on the clock, 19 mpg so NOT ELIGIBLE. It's just a big giveaway for people who bought gas hogs.

 

We just traded in our Durango under the program. This is the only part of Obama's stimulis that is actually stimulating anything. Might as well take advantage of it.

 

Another thing they don't tell you is the dealership is selling your car for scrap. So not only is he getting up to $4500 from the fed, he will sell your car and make more money. We're looking at trading my F150 for a new SUV, they don't even want to work with you right now on price. It's sticker, plus any rebate, and CFC discount. We are bailing them out and they don't get it.


What they are not giving you: (from the bill)
The program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate.

They updated the site, the dealer can now deduct $50 for their administrative costs to scrap your car. How many people do you think are not getting the extra $500 to $1000 from the dealer for scrapping your old car?

 

I found a better tax break, I donated our worn out Motor home which got at best 6 mpg. I got a reciept for the donation of $7,200. This was $1,500 more than I paid for it. Now I wont get 7,200 back next spring but I will be able to not pay taxes on 7,200. And I got rid of a POS! Allan

 

I HATE government subsidies.
The scrap market has tanked for things like plastics and common metals used in a lot of cars due to the anticipated influx of tons of cheap and ready to scrap metal coming into the market.
This will likely depress the cost of new American steel, hurting an already reeling market and potentially putting more people out of a job.
I don't like that it is taxpayer funded, like ALL money the government spends.
I think it misses the mark on the era of cars it is focusing on. There are a lot of old early '70s bombers here in Michigan that wouldn't even be roadworthy in any inspection state. They are shooting smoke, burning oil and bounding down the highway at 70+ mph waiting to shed parts or spear into *** end because of drum brakes and poor maintenance. Why aren't we spending the money to forcibly remove these types of cars? Hell, replace them with the cars we are "clunking," now and we'd still be better off.
For that matter, give everyone who owns a qualifying vehicle a $500 voucher for a tune up, brake service and alignment!
Bottom line, government intervention in a so called "free market" continues to erode the principals of our economy, our democracy and our very way of life. Today I am subsidizing farmers, unemployed people who can but don't want to work, families on welfare, single mothers, prisoners and a lot of others I probably don't know about. I can make an argument FOR each of these programs as important benefits to broad portions of our citizenry. But now I am subsidizing people who want a new car? C'mon! :dupe:

 

It's all about re-election, and not about cars or the environment.

A grand handout to the auto industry

 

"Why aren't we spending the money to forcibly remove these types of cars? "

Because we have the wonderful experiment called "freedom".

Some people can't handle it.

 

In Texas, we have an existing program already in effect. It function is to help out lower middle class and below with assistance to purchase a new car. The program is based more on income and removing a car that someone can't keep up anymore. Not sure strapping them with new payments will help, but I guess having a 60,000 warranty car might help getting them to work.