And the Wheels of the Clunker Go Thunk, Thunk, Thunk: “Cash for Clunkers” Ending… Again
Posted By Vicki McClure Davidson on August 20, 2009
Three billion dollars for the 'Cash for Clunkers' program gone
The first billion dollars for “Cash for Clunkers” was gone in about a week instead of Congress’s projection of 3 – 4 months. The next emergency two billion dollars that Congress hastily approved was gone in about two weeks.
So much for it lasting until November 1, with auto dealers having to pre-pay untold amounts of money in soon-to-be worthless advertising.
And so much for reimbursing car dealers on a timely basis.
From Associated Press:
NY dealers pull out of clunkers program
The Greater New York Automobile Dealers Association, which represents dealerships in the New York metro area, said about half its 425 members have left the program because they cannot afford to offer more rebates. They’re also worried about getting repaid…
Schienberg said the group’s dealers have been repaid for only about 2 percent of the clunkers deals they’ve made so far…
“But it’s in the hands of this enormous bureaucracy and regulatory agency,” he added. “If they don’t get out of their own way, this program is going to be a huge failure.”
From Freep.com:
U.S. to shut down cash for clunkers at 8 p.m. Monday
Free Press Washington Staff
By Justin Hyde | August 20, 2009WASHINGTON – The U.S. government will shut down its cash-for-clunkers program at 8 p.m. Monday to keep car dealers and shoppers from claiming more than the $3 billion set aside for the program.
The decision announced today means that the program originally expected to generate 250,000 vehicle sales over three months will have likely triggered more than 700,000 in less than one month. While accomplishing goals of destroying gas guzzlers and spurring the U.S. auto industry to boost production, the larger effects of the plan on the economy and environment will be debated for years to come.
“This program has been a lifeline to the automobile industry, jump-starting a major sector of the economy and putting people back to work,” said U.S. Transportation Secretary Ray LaHood. “At the same time, we’ve been able to take old, polluting cars off the road and help consumers purchase fuel efficient vehicles.”
But the program has also triggered increasing friction between dealers who say the government has been reimbursing them at a snail’s pace and federal officials claiming much of the delay comes from faulty paperwork by dealers. A senior White House official said today that of the $1.9 billion claimed through today, just $145 million had been paid out by the government — or about 8%.
General Motors Co. and Chrysler said today they would advance cash to dealers while they waited for clunker payments.
The program has proven so popular that the Obama administration has struggled to keep its growth in check, pushing an emergency $2-billion extension through Congress earlier this month when the plan burned through its original $1 billion in about a week. Backers of the plan previously said they would not seek any additional money, and the White House reiterated that stance today.
Additional “Cash for Clunkers” reading:
Hot Air: Good news: Feds pulling workers away from FAA to staff exploding Cash for Clunkers bureaucracy and Great news: Cash for Clunkers might be out of money again already
Michelle Malkin: And now: Cash for Kitchen Appliances and Cash for Clunkers, R.I.P. – for now and Roll call vote: Senate rejects Cash-for-Clunkers aid to charities and poor and Obama lied, transparency died, Pt. 10,001: No Cash for Clunkers disclosure and Coming next: Planned Grandparenthood Centers and Grass-roots revolt in Austin, TX: “Just say no!” to Obamacare; Pennsylvanians boo Sebelius & Specter, “How can you manage health care when you can’t manage Cash For Clunkers?” and Cash for clunkers junked… but dealer ads still running and Waxman shortcircuits debate to ram eco-taxes through Congress
Small Dead Animals: He’s Running America Like They Run Their Party
Cato @ Liberty: Cash for Clunkers: Dumbest Program Ever?
Billings Gazette: Survey: Cash for Clunkers is tapped out
Riehl World View: Buh Bye Cash For Clunkers – Program Crashes, Burns
Right Voices: Cash For Clunkers To Be Euthanized On Monday
Pundit & Pundette: What a waste
Frugal Café Blog Zone: The Galling, Appalling Waste of “Cash for Clunkers” and Glenn Beck Warns ‘Cash for Clunkers’ Website As Government Scam to Gain Access to Everything–Yes, EVERYTHING–on Your Computer and “Cash for Clunkers” Complicated, Money Running Out: Mark Levin Asks, “If This Simple Program Is So Complicated, What Will Happen with Government Running Health Care?”
Doug Powers, Michelle Malkin: Did ‘Cash for Clunkers’ just put Obamacare on the junk heap? Update: House adds $2 billion more to re-start the program
The Patriot’s Mind: Getting Stiffed for Clunkers – Surprise! The Gov’t Doesn’t Pay Their Bills!
The Nobama Blog: Cash For Clunkers is a Clunker
Axis of Right: Cash for Clunkers Headed to the Scrap Heap?
The Blaque Professor: “Cash for Clunkers” is a Potential Waste
P.J. Gladnick, NewsBusters: Cash for Clunkers Video Sparks Outrage Over Wasteful Government Programs
Riehl World View: Cash For Clunkers, Sodium Silicate For Mechanics
AOL News: A Clunker for Taxpayers?
Hot Air Green Room: Because when these cars are gone, …um, we’ll sell you some more!
FoxPolitics.net: What kind of country can afford to just wreck good stuff?
RedState: Cash for Clunkers (for Democrats)
Radio Vice Online: Cash for clunkers breaks down
Hot Air: Just a reminder: Cash for Clunkers requires destroying perfectly usable cars and Glenn Beck: Cash For Clunkers may be a government scheme to take over your computer and The ObamaCare-CRA-TARP-Clunker lesson and Cash for clunkers runs out of money … after one week; Update: Feds scramble to save program
Sister Toldjah: Great news: Cash for clunkers won’t have any real impact on the climate
Ztower: Support “Cash For Clunkers!” Give Each Member Of Congress $10,000,000 If They Agree To Retire At The End Of Their Current Term.
The Family Technology Blog: Glenn Beck: Cars.gov allows government to takeover your computer.
Wake Up Black America: If government can’t even run a simple automobile incentive program right, why should they be trusted with your healthcare?
Carpe Diem: Cash for Clunkers: 136 Pages of Rules and Regs; How Many Pages for Government Health Care?
The Patriot Room: That was fast: Cash for Clunkers junked
Queer Stuff: Cash for Clunkers: subsidizing the automobile industry or improving the environment?
Innocent Bystanders: Cash for Clunkers Takes Effect. Maybe.
About the author
Well, the government seems have done their best, just as the Inside Line says: As a sales motivator, Cash for Clunkers has certainly been good for stimulating car sales. But the government can only do so much to help.
Although the program would end before we expected, and only run for a couple of weeks, it do contribute to the car industry, General Motors is enjoying a recent sales uptick and Chrysler had announced it would increase its production.