The wildly popular Cash For Clunkers program will end at midnight Monday. At that time, it is felt the $3 Billion dollars that funded the program will have been exhausted. Almost half a million new vehicles will have been sold under the program…
Well, I’m happy we found a way to eliminate the wild ups and downs in the market…
So much for the added shifts at GM and Ford!
Just Put It On My Tab! My Taxes Are Already Out Of Control!
I’m disappointed. I haven’t received a thank-you from any of the recipients, yet.
CSA
I’m afraid you are right…If car sales tank, so will the stock market. There will be no second shift…
And?
I’ll be happy when it’s over.
We’ll see whether or not it makes any difference in the long run.
I’m just glad I’m not a car dealer, waiting for my money.
So what’s next? Any shoe exchange programs out there? Do they give new houses for old ones?
I don’t know when or how, but when the economy recovers, the deficit and inflation is going to torture couple of generations.
There is a program for 1st time home buyers available now, to qualify the sale has to close before the end of 2009.
As far as cars, this is it. Perhaps the car buyers without a clunker can get in the action now. It will take a month or two for many dealerships to get their inventory restocked. Likely the month after the CFC program ends will be a down month for auto sales. After the inventory is replenished my guess is the auto sales will be better than before CFC and will steadily, but slowly, improve thereafter.
I do think the CFC program really helped the two auto companies that just came out of bankruptcy proceedings the most. People were so hungry for deals they didn’t worry about whether GM or Chrysler would survive anymore. Selling down a bunch of your inventory just out of bankrupcy has to help.
Two half full glasses!
You might be right, or maybe car sales will pick up a bit on their own. We’ll see by the end of the year.
There are still another $1B in the original package. If that too gets approved for appropriation the industry may get another week of joy before the bottom falls out.
Dealers in NH have begun (openly, to their credit) adding a clause to the contracts asking the buyers to accept responsibility if the feds don’t send the checks. Lots of folks are just walking away. According to the Manchester Union Leader this morning one dealer is owed oover $400,000. The law requires a 10 day response from the feds, but dealers have been waiting over a month and are still waiting. That’s a big dent in the cash flow.
The program has been wildly popular only amongst those few directly benefitting and among the major media talking heads. The rest of the populus, those seeing their tax dollars used in this manner with no benefit to them, has been less enthusiastic.
Let’s hope this doesnn’t become an entitlement program.
As to the stock market, that’s in the doldrums for the long haul anyway. We’re in a deep and sustained recession by any measure used.
YAHOOO! of course now were in DEEP trouble. a local dealer should have gotten $60,000
in money, they only got $10,000. yeah, the government has some explaining to do, or else this ‘Magic Bullet’ will turn around and come back at us. too late!
also, look for the “report” that is supposed to come out on how “green” they were by crushing these vehicles. what they refuse to put in this phony “report” is the energy used to destroy the vehicles, process the car to get the steel useable, to build new vehicles, and get them to dealers. when a used car ages, it is offsetting the energy used to create it (even with "gas guzzling mileage). and if it lives out a natural life (e.g. not being crushed prematurely) it has completely offset the energy used to create it. basicly, were screwed.
I believe a similar program was just announced for home appliances.