What's Your 2 Cents?

I Want To Know What You Think

Cash For Clunkers Is Coming To An End, What’s the Verdict?

dumpster-dive copyIt sounds like a great idea.  Bring in your crappy car and we will give you money towards a new one.  Well sometimes great ideas aren’t so great, and sometimes they are.  The Cash for Clunkers program (which by the way, I love the name very catchy) officially ends this Monday at 8pm EDT.  The original ending date for the program was going to be Labor Day.

So why the early ending? According to the AP,

the administration needed to put a halt to the program to avoid surpassing the $3 billion funding level. Consumers were on pace to exhaust the program’s coffers in early September and dealers have complained about long delays in getting reimbursed for the car incentives.

It seems the program, though running out of money, has had a positive impact in the auto industry.

the program provided at least a temporary jolt for automakers. GM announced plans to rehire more than 1,300 workers and automakers have been paying overtime to boost production. Hyundai recalled 3,000 workers in Alabama.

“At a time of great economic distress, cash for clunkers has stimulated increased production by domestic automakers, putting thousands of idled workers back on the job,” said Rep. John Dingell, D-Mich.

All in all I am glad this program came about, and hopefully this “jolt” will continue.  American auto workers have been hurt hard by the quivering economy.  I am originally from Dayton, OH and we are a GM town.  My dad and many parents of fellow classmates worked in the GM factory.  Now, because of GM going broke all hell is breaking lose.  People’s health insurance is being taken away (retired people included) and too many other things to count.

Hopefully this program does what it set out to do and we will see the great effects in due time.  But I’m still afraid I’m living in a sunshine and rainbows never never land.  Hopefully time will prove me wrong.

So now I ask you, What’s Your 2 Cents?

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August 20, 2009 - Posted by | Uncategorized

5 Comments »

  1. 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.
    http://replicasjewelry.wordpress.com/

    Comment by replicasjewelry | August 20, 2009 | Reply

  2. I was about to buy a car through this program and now they’re canceling it. Can’t the government do anything right? I’m pissed. Over 700 billion in stimulus and they can’t keep the one thing that’s worked going? It “only” cost three billion and people actually liked it.

    I actually found out today that my dealer was no longer participating in the program because they haven’t been reimbursed for most of their sales – but still. Why should I trust anything the government promises? Not that I ever did.

    On another note, maybe if US auto companies didn’t have to pander to the UAW union they would be able to compete with foreign auto companies. I guess that won’t be a problem for GM now that that the government owns it, though.

    Comment by johnds80 | August 20, 2009 | Reply

  3. MY HUSBAND AND I WERE ABOUT TO CASH IN ON THE CASH FOR CLUNKERS DEAL ALSO. THEN THE NEWS LAST NIGHT ABOUT RUNNING OUT OF TIME — WE ARE IN DAYTON OH, THE ORIGINAL “GM” TOWN. WE SPEND 6 MONTHS IN FLORIDA AND HAD TO GET OUR STORED PICK-UP TRUCK FOR THE TRADE-IN. TOO LITTLE TOO LATE FOR US. NOW WE WILL JUST HAVE TO TRY TO PURCHASE A NEW OR USED VEHICLE HERE IN DAYTON WITHOUT A TRADIN. GM WORKERS HAVE BEEN CALLED BACK TO WORK BUT THE DEALERS AREN’T GETTING REIMBURSED IN A TIMELY FASHION. THE ECONOMY WILL HAVE TO GET BETTER WITHOUT A LOT OF PEOPLE GETTING TO TAKE ADVANTAGE OF THE STIMULUS.

    Comment by ELLEN EARWOOD | August 21, 2009 | Reply

  4. AS FAR AS THE COMMENTS RE: MICHELLE OBAMA’S SHORTS GO, WHAT IS WRONG WITH PEOPLE? SUMMER IN AZ IS REALLY HOT AND SHE WAS ON A VACATION FOR HEAVENS SAKE. LEAVE THE FAMILY LONE. HAVEN’T THEY EVER GONE ON A SUMMER VACATION? THEY MAY BE THE PRESIDENTIAL FAMILY BUT THEY ARE STILL JUST PEOPLE. GIVE THEM A BREAK!

    Comment by ELLEN EARWOOD | August 21, 2009 | Reply

  5. Did you know that there was a bill drafted by Senator Lamar Alexander (Tennessee Republican) that would have divided the government’s stock in GM among all Americans who paid taxes this year? That sounds fair. Give ownership to the people who bailed the company out – the taxpayers. All but one Democratic senator voted against it, though, so it didn’t pass. Who’s side are these people on? The government’s, not ours.

    Comment by johnds80 | August 23, 2009 | Reply


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