Cash for Clunkers...

[The Other Side]

Now, before you right wing followers of FAUX news get your panties in a bunch because the Goverment hasnt issed the checks fast enough to the dealers.

Remember this, the dealers are in a "win win" situation. They take in cars that are considered "clunkers", most werent and are re-sellable. (profit) because NO actual cash value was paid by the dealer.

Next, for those that cant be wholesaled or re-sold, they are sold to the scrap yards, again, profit because NO actual cash value was paid by the dealer.

So, lets make it clear. The dealer gives the consumer up to 4500 dollars of "their" own money back as a cash incentive for a trade in, then, it gets that money back from the goverment at some point and breaks even, then it either re-sells the trade for profit or sells the trade to a wholesaler for a reduced profit or it sells the trade to the scrap man for a bigger reduced profit over and above the money it recieved from the US Treasury.

How are they losing money again??

DUH

 

[toonertoo]

So the dealer has to pay for the new cars he sold, and at some point he will get his money back. I dont know any creditor which likes to hear, "you will get your money when I get it". In many cases the profit made on new car sales will not be realized until they get their rebate from the government. So the salesman gets diddly, until Obama Motors pays up.

 

[dilligaf]

And tonight cash for clunkers ends. I wonder if they will ever see any money.

 

[klein]

And tonight cash for clunkers ends. I wonder if they will ever see any money.

Just get the chinese to send over some more

 

[1989]

Now, before you right wing followers of FAUX news get your panties in a bunch because the Goverment hasnt issed the checks fast enough to the dealers.

Remember this, the dealers are in a "win win" situation. They take in cars that are considered "clunkers", most werent and are re-sellable. (profit) because NO actual cash value was paid by the dealer.

Next, for those that cant be wholesaled or re-sold, they are sold to the scrap yards, again, profit because NO actual cash value was paid by the dealer.

So, lets make it clear. The dealer gives the consumer up to 4500 dollars of "their" own money back as a cash incentive for a trade in, then, it gets that money back from the goverment at some point and breaks even, then it either re-sells the trade for profit or sells the trade to a wholesaler for a reduced profit or it sells the trade to the scrap man for a bigger reduced profit over and above the money it recieved from the US Treasury.

How are they losing money again??

DUH

You can't sell or wholesale any traded in clunker.
The rules state:

Once a clunker is cashed in for a new ride, the dealer must immediately disable the engine. The vehicles are then towed to a salvage or recycling facility where they must be crushed or shredded within six months.

 

[Babagounj]

Remember this, the dealers are in a "win win" situation. They take in cars that are considered "clunkers", most werent and are re-sellable. (profit) because NO actual cash value was paid by the dealer.

Next, for those that cant be wholesaled or re-sold, they are sold to the scrap yards, again, profit because NO actual cash value was paid by the dealer.



DUH

in order to be considered a clunker the car's motor is made useless.
So explain to me who would buy a motorless car ?
With it costing $700 to $1200 per car to remove all the fluids and hazard materials in order to begin dismantling some usable parts ( the motor oil is useless now due to the stuff used to kill the engine ) & the engine is now only good as a paperweight , please also explain how a scrap yard is going to make any profit ?

 

[brett636]

Now, before you right wing followers of FAUX news get your panties in a bunch because the Goverment hasnt issed the checks fast enough to the dealers.

Remember this, the dealers are in a "win win" situation. They take in cars that are considered "clunkers", most werent and are re-sellable. (profit) because NO actual cash value was paid by the dealer.

Next, for those that cant be wholesaled or re-sold, they are sold to the scrap yards, again, profit because NO actual cash value was paid by the dealer.

So, lets make it clear. The dealer gives the consumer up to 4500 dollars of "their" own money back as a cash incentive for a trade in, then, it gets that money back from the goverment at some point and breaks even, then it either re-sells the trade for profit or sells the trade to a wholesaler for a reduced profit or it sells the trade to the scrap man for a bigger reduced profit over and above the money it recieved from the US Treasury.

How are they losing money again??

DUH

I dunno where you get your information from, but every vehicle taken in and processed under Cash For Clunkers has a date with the crusher within 90 to 180 days. Doesn't matter if the vehicle is in resellable condition or not. It has to be destroyed.

 

[diesel96]

They are supposed to be paid within 10 days. As of Friday the government owes New Mexico car dealers around $3.6 million and has sent 3 checks to that state worth $14,000.



I'm surprised being such a staunch liberal/democrat that you would support this program. Are you ok with used car prices going up causing poor families difficulties in affording a cheap replacement car. I thought you were all for the little guy, and not a fan of corporate welfare?

I guess the only good to come of this program is the large number of cheap, repossessed economy cars that will be at the auto auctions in the next 6 months to a year. People who had these older vehicles owned them for a reason. They could not afford a new car, but since the government waved that rebate money in their faces they just could not resist and now they are stuck with a new car payment along with the higher insurance premiums that go with it.

Every point your trying to make, is a stretch, a reach, or plain and simply a guess. When the Cash for Clunkers dust settles, car dealers will need to get back to the basics and negotiate for your business.
Dealers are looking for used cars for their lots since inventory levels are depleted and yes, I'll give you auction prices have risen. However, mfg rebates will still total in the thousands of dollars. It’s a good time to be shopping for a new car, which will replenish the used car inventories reducing costs.
Dealers will be continuinly updating incentives, rebates and finance programs as on ongoing service to car shoppers. Opportunities are in store for consumers to get the best deals on new and used cars.
Things will get back to normal on September 1st and during the first week of September we will see that new rebates and incentives will be for the upcoming month. I'm surprised, where is your competative capitalistic fervor? What do you have to be afraid of, since you have no faith in humanity, and think all clunker owners are welfare parasites who can't afford a new vehicle, this CFC program should be easy pickens for another Obama failure.....or maybe your worse nightmare, a success.....lol

 

[brett636]

Every point your trying to make, is a stretch, a reach, or plain and simply a guess. When the Cash for Clunkers dust settles, car dealers will need to get back to the basics and negotiate for your business.
Dealers are looking for used cars for their lots since inventory levels are depleted and yes, I'll give you auction prices have risen. However, mfg rebates will still total in the thousands of dollars. It’s a good time to be shopping for a new car, which will replenish the used car inventories reducing costs.
Dealers will be continuinly updating incentives, rebates and finance programs as on ongoing service to car shoppers. Opportunities are in store for consumers to get the best deals on new and used cars.
Things will get back to normal on September 1st and during the first week of September we will see that new rebates and incentives will be for the upcoming month. I'm surprised, where is your competative capitalistic fervor? What do you have to be afraid of, since you have no faith in humanity, and think all clunker owners are welfare parasites who can't afford a new vehicle, this CFC program should be easy pickens for another Obama failure.....or maybe your worse nightmare, a success.....lol

You still did not answer my question on your support of corporate welfare programs which is exactly what Cash for Clunkers is all about. Although its apparent you can't comprehend the difference between a competitive advantage(which this program is not about), and using taxpayer dollars to remove used vehicles from the market increasing prices for all used vehicles. Calling this a success is a bit early as we have yet to see how many vehicles will get repossessed in the coming months when the owners get tired of making payments on them. Lets not forget that the people encouraged to trade in PAID FOR vehicles now have an extra payment to make each month decreasing the other retail shopping they may have been engaged in not to mention sending otherwise serviceable vehicles to the crusher is a recipe for a failure of this program. The only success that can be claimed is it ran through its allotted money much faster than anticipated. Whether it truly helped the economy has yet to be seen.

 

[klein]

Every point your trying to make, is a stretch, a reach, or plain and simply a guess. When the Cash for Clunkers dust settles, car dealers will need to get back to the basics and negotiate for your business.
Dealers are looking for used cars for their lots since inventory levels are depleted and yes, I'll give you auction prices have risen. However, mfg rebates will still total in the thousands of dollars. It’s a good time to be shopping for a new car, which will replenish the used car inventories reducing costs.
Dealers will be continuinly updating incentives, rebates and finance programs as on ongoing service to car shoppers. Opportunities are in store for consumers to get the best deals on new and used cars.
Things will get back to normal on September 1st and during the first week of September we will see that new rebates and incentives will be for the upcoming month. I'm surprised, where is your competative capitalistic fervor? What do you have to be afraid of, since you have no faith in humanity, and think all clunker owners are welfare parasites who can't afford a new vehicle, this CFC program should be easy pickens for another Obama failure.....or maybe your worse nightmare, a success.....lol

If you didn't buy a new care with $4500 trade in, and missed the chance,
what makes you think, they'll buy a new one now ?

 

[brett636]

If you didn't buy a new care with $4500 trade in, and missed the chance,
what makes you think, they'll buy a new one now ?

Exactly, Demand for new cars is going to decrease signifigantly as anyone who was thinking of buying a car in the next 6-12 months bought a car doing this C4C program. All those autoworkers who are back to work because of this program, will be laid off in 6-8 weeks when the final cars ordered under C4Cs rolls off the assembly line.

 

[Babagounj]

one small item; if the auto dealer does not get the $3500 to $4500 from the gov't for the clunker, then the purchaser is responsible for that cash to be paid to the dealer.

And when that happens...

 

[1989]

They will have some sells. But nothing like the bubble created by the program. The program was definately another trickle down program for the dealers the dems say don't work. I guess they just love the welfare part of the program that benefited the well off consumer. The consumer that wasn't affected by a job loss or mortgage default. It did nothing for the poor which the dems claim they want to help.

 

[Babagounj]

8/24/2009 9:41 PM Some Surprised By 'Clunker' Tax

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The Cash For Clunkers program is adding to the activity at treasurers' offices all around South Dakota. First, people were asking for proof of ownership, so they could show they owned their vehicle for a full year, allowing them to cash it in. Now, they'll be returning to register their new vehicle. And when they do, new owners need to bring every bit of paperwork provided to them by their dealer.

"That means they need their title, their damage disclosure, their bill of sale and the dealers have 30 days to get that to them," Minnehaha County Treasurer Pam Nelson said.

But many of those cashing in on the clunkers program are surprised when they get to the treasurer's office windows. That's because the government's rebate of up to $4500 dollars for every clunker is taxable.

"They didn't realize that would be taxable. A lot of people don't realize that. So they're not happy and kind of surprised when they find that out," Nelson said.

For now, the biggest impact of the program hasn't hit this office yet, as most of the paperwork is still in the hands of the dealers. But Nelson expects to see move activity in her office in the next month.

"I'm anxious to see what it's going to be like. I have no idea how many people we're going to see. Hopefully the dealers can process their paperwork in 30 days," Nelson said.

And that's when the line at this office will give some indication of how many cars the government program moved off of local lots.

Nelson adds that if you did recently purchase a vehicle, ensure your dealer gets you the paperwork in time because if they don't you could pay extra interest and penalties.

 

[klein]

Toyota's Thank-you for cash for clunkers :

Toyota to close California plant, shifting production to Ontario

Corolla output will move to Cambridge, Ontario


The decision stung even more for labor and lawmakers in light of news this week that Toyota was the biggest beneficiary of the $3 billion U.S. government "cash for clunkers" incentive program designed to jump-start industry sales.

and here is the article:
http://news.globaltv.com/world/Toyo...hifting+production+Ontario/1936905/story.html


video :
http://news.globaltv.com/video/index.html?releasePID=hmpMT0KitAIZEsU8Hywnk0E8jYCY4_CC

 

[moreluck]

I saw a little old lady on the news this morning. She went to her Ford dealer to participate in the clunker program. She turned in her car, picked a Ford Focus.....put $7900 of her money down and financed the rest. She was not allowed to take the car from the lot until the dealer gets the money from the gov't.

So, it's been a month. She still has no new car and her new car first payment will be due Sept. 10th. This is a gov't run program. Can you imagine them running a health program??? Scary thought !!

Oh, by the way, the Ford Co. remembered to send her the survey asking if she liked her new car.

 

[UpstateNYUPSer(Ret)]

I saw a little old lady on the news this morning. She went to her Ford dealer to participate in the clunker program. She turned in her car, picked a Ford Focus.....put $7900 of her money down and financed the rest. She was not allowed to take the car from the lot until the dealer gets the money from the gov't.

So, it's been a month. She still has no new car and her new car first payment will be due Sept. 10th. This is a gov't run program. Can you imagine them running a health program??? Scary thought !!

Oh, by the way, the Ford Co. remembered to send her the survey asking if she liked her new car.

Her misery is not quite over yet. The clunkers rebate is taxable which she will have to pay before she is able to register it. Don't recall reading that in the fine print.

 

[1989]

Her misery is not quite over yet. The clunkers rebate is taxable which she will have to pay before she is able to register it. Don't recall reading that in the fine print.

She only has to pay her state sales tax rate.

 

[UpstateNYUPSer(Ret)]

She only has to pay her state sales tax rate.

...which, according to Google, ranges from 8.25-10.25%, so approx. $400.

 

[moreluck]

Now I heard talk of expanding the Cash program to other things besides cars....like Cash for Washers and dryers, cash for refrigerators, cash for garbage disposals, Cash for your Keurig Coffee Maker, cash for your new Slap-Chop, etc.

Yeah, the cash for Clunkers program is working so well that we should continue throwing billions more $$$ at it. Seems only 11% of the dealers have rec'd any $$$ thus far.