$$$$$ for clunkers passes

[GrilledSteezeSandwich]

If it is combined, it is kind of hard to find a car that qualifies. It looks like you need to have one of these to trade.

http://www.fueleconomy.gov/feg/calculatorCompareSideBySide.jsp?column=1&id=541

or

http://www.fueleconomy.gov/feg/calculatorSelectEngine.jsp?year=1999&make=Cadillac&model=DeVille

What we have gets a combined of 20 mpg (17 city / 26 highway) under the "new" way of calculating.

So this is good for someone who may have picked up a "winter beater" 1985 Caddy 2 years ago for $500 and decides to take advantage of the Cash for Clunkers bill and trade up to a 2010 Prius for $22,000. It looks like they will be paying $22,000 - $4,500 = $17,500 and also do not have to pay any sales tax. Not bad as that 1985 Caddy owner makes out well on the trade in.

Yeah but how could someone with a $500 car afford a discounted $22,000 car????

 

[ComeBackMudPuddles]

wikipedia has a pretty good summary of the various cash-for-clunkers programs around the world: http://en.wikipedia.org/wiki/Scrappage_program

it's been a huge hit in places like germany, with big sales increases (and costs, too).

 

[ctenidae]

I just realized today that Cash-For-Clunkers was tucked into the funding bil for the war in Afghanistan. No way it wasn't going to pass, regardless of what anyone thinks of it.

 

[mondeo]

I just realized today that Cash-For-Clunkers was tucked into the funding bil for the war in Afghanistan. No way it wasn't going to pass, regardless of what anyone thinks of it.

There should be a constitutional amendment banning riders.

Not that it would be respected any more than the restriction of spending bills originating in the House.

 

[Geoff]

There should be a constitutional amendment banning riders.

And you thought snowboarders were pissed off by MRG, Deer Valley, and Alta....

 

[Philpug]

What is going to happen with these cars that are traded in? Did the owner have to have them for a period of time? what is to stop someone from picking up a POS Ford Bronco for 800 then getting a credit of 4500 on a high MPG car?

I am all for spurring auto sales. Simplify things though. Let the state sales tax a federal tax credit or let people deduct the car value off of their gross income.

 

[skijay]

What is going to happen with these cars that are traded in? Did the owner have to have them for a period of time? what is to stop someone from picking up a POS Ford Bronco for 800 then getting a credit of 4500 on a high MPG car?

I am all for spurring auto sales. Simplify things though. Let the state sales tax a federal tax credit or let people deduct the car value off of their gross income.

You have to have owned & insured & registered the car for one year or longer.
My reason for buying a new vehicle last month was the sales tax credit.

 

[Philpug]

You have to have owned & insured & registered the car for one year or longer.
My reason for buying a new vehicle last month was the sales tax credit.

That makes sense that you have to have it at least a year. I am still sure many of dealers are going to get some serious auditing and chargebacks for fudging some paperwork.

 

[campgottagopee]

That makes sense that you have to have it at least a year. I am still sure many of dealers are going to get some serious auditing and chargebacks for fudging some paperwork.

Kinda doubt it---$15K per incident

 

[Warp Daddy]

You have to have owned & insured & registered the car for one year or longer.
My reason for buying a new vehicle last month was the sales tax credit.

The notion of CALLING it a sales tax CREDIT is flawed , because it is an ABOVE THE LINE DEDUCTION from one's GROSS income NOT a REAL tax CREDIT

So --- the impact depends solely on one's tax bracket -----------------------------------------governmental double speak here So what initially looked like a $1000-1500 REAL tax credit off your tax liability isNOW just a % of that based on your bracket ----- IF i UNDERSTAND the details

So REALLY NOT much of an INCENTIVE at all :flame: