Suspend "Cash For Clunkers"?

[N2TRUX]

Trust me when I tell you that qualifying for an auto loan these days isn't easy. I agree that there will be some folks lured in by this shiny object that shouldn't be, but the loan companies have upped their criteria considerably.

I have an open line of credit at a local credit union. I recently called them asking for the rate on a loan. Even though I have a VERY high credit score and a small debt to income ratio, they still asked several questions they have never asked in the past.

While I did get pre approved at 3.9%, I still have to bring copies of my last two tax returns. Again, something I have never had to do before.

Flame the program if you wish, but it is pumping money directly in to my local economy and I am all for it.

[kingsolver72]

[quote=leddzepp;3453045]

Originally Posted by robin58

You do have a say: it's called election time. QUOTE]

More fairy tales have begun with "When I am elected" than "Once upon a time"

That there homechicken is a very keen observation. I totally get it.
Could not have stated it better.

[Shane]

I agree that the program is pumping much needed dollars into local economies ... my main concern and question is at what future costs?

[El Jay]

Originally Posted by robin58

You do have a say: it's called election time. If you don't like what your senator or congressman did, don't vote for him. But at the end of the day we can't expect to all be micromanaging how the government spends our tax dollars. What would you want? A vote each time something gets spent? You'll never please everyone with how tax dollars are spent. While being anti-bailouts in general, as pointed out above by Longhorn Man one simply cannot ignore the impact of selling 750,000 vehicles. And also let us not forget this is one of the few times there are no income stipulations nor is it a gimmick tax credit applied against what you owe. This bailout on the surface appears to be one that aids the automotive industry, the dealers, the finance companies and the buyers. Everyone can shoot holes in a program or decry spending yet more. However in reality $3B in this instance probably has had a greater net effect than any other expenditure so far.

Knowing Scott (leddzepp), we didn't vote for 'em.
We just have to live with 'em!

I'm done potilicizing.
Over & out.

[big mike71]

I love to argue, but politics gets me to wound up and would offend somebody. Arguing with me is like wrestling a pig in mud, eventually you figure out I like it.

[robin58]

Originally Posted by leddzepp

More fairy tales have begun with "When I am elected" than "Once upon a time"

That may be true, but in reality the general public also is to blame for that. How many complain openly to others yet never contact their elected officials whether they are city officials, Parish/county officials, state or Federal government ones? One can argue all day long that it never does any good. That will never stop me. In the past year, our state representatives decided it would be a good time to vote themselves a payraise. It created a furor. Personally I wrote to my local representative who responded and was a man of his word voting against it after sufficient people had written to him. Yet, the bill passed which then meant it was up to the governor. Enough people wrote to him which ended up in the bill being vetoed. At a local level I am currently witnessing a recall for a Parish official (that's county elsewhere in the other 49 states) because he's voting for expenditures he stated he would oppose. And at the same time we have a ballot circulating that will put a publicly sponsored law for tax expenditures (road repairs) on the ballot. There's plenty people can do to get involved. Many just prefer not to. I realize it's not the same everywhere, but it can be done.

Originally Posted by Shane

I agree that the program is pumping much needed dollars into local economies ... my main concern and question is at what future costs?

That was my first impressions also I have to admit. Then as I started to think about it some more I realized this should have been the preferred method of bail-out for the auto manufacturers in the first place. Instead of throwing tens of billions at them to keep them in business at the outset, a mere $1B seems to have stimulated 250,000 in sales and if the program stays as effective we'll get 750,000 for $3B.

I agree with your general sentiment that as a nation we are too much in debt. Yet somehow, this bailout working out at $10 for every living person (current or future taxpayer) doesn't seem as bad to me. Maybe it's because I see statements like those made earlier in this thread that some salesmen are moving 20 vehicles a month. That will put money in their pockets. I have to be optimistic and think some of those salesmen will be in a better mood, take the family out to eat and maybe even tip the waitress who hasn't been doing well lately $10.

One has to hope that at some point in time people won't make frivolous purchases any longer or ones they cannot afford. If after what has transpired in the past 2 years, people still do so, we have bigger problems than worrying about $3B.

[watahyahknow]

the general saying is it takes money to make money and if no money comes in no money comes out ,
when someone doesnt earn money he cant buy anything either like say a new tv so the man manufacturing the tv the companies manufacturing parts wish are needed to put the tv together and the man selling the tv is hurting too .
take a look at the amount of parts a car or truck is made out of and how many people / companies are involved in making those parts and get them in the factories that make the cars , you be suprized how far the tree goes and how many people are sideways depending on that industrie

[panhandler62]

Originally Posted by Shane

I agree that the program is pumping much needed dollars into local economies ... my main concern and question is at what future costs?

Right now it is supressing the used car market prices somewhat. My Camry books at 14,200 but no one is going to give me the 13,800 I want for it right now when they can get a brand new one for mid 14s.

When the program runs its course there will be a small increase in used car values at the lower end of the market and a small decrease in scrap prices.

If the increased economic levels generates less than $3 billion in tax revenue then the difference will pile onto the deficit. I couldn't begin to work this calculation out. Dealers, shipping, parts, labor manufacturers... I have no idea where to get all the figures for their profits and taxes to ballance that checkbook.

Some people recon that it sets a bad precedent for government intervention. If that is your concern; I understand, but we'll have to drop it at the acknowledgment point since it runs directly into political theory without passing "Go."

[leddzepp]

Originally Posted by robin58

1. How many complain openly to others yet never contact their elected officials whether they are city officials, Parish/county officials, state or Federal government ones?

2. One has to hope that at some point in time people won't make frivolous purchases any longer or ones they cannot afford.

1. I did contact my elected rep. about an issue, and it did no good. All I wanted was an apology from a city worker for his treatment of my family, and it was not granted. I did not threaten to file any type of lawsuit, nor ask for any financial compensation, nor did I swear in my telling him of the events that occurred. He was very dismissive, and I got so angry that I decided to never go this route again, for fear of what I might do the next time I was treated this way.
2. Trust me, that is a lot to hope for. I see it still happening every day.

Originally Posted by Shane

I agree that the program is pumping much needed dollars into local economies ... my main concern and question is at what future costs?

This is my primary concern.

Now, on a good note: That is good to know N2TRUX. Both about the loan qualification requirements, and the fact that your local economy is picking up. There are some positives to this, I will admit, and I am glad to hear that.

I also see an increase in work for repo guys!

[dammitmitchell]

simply put ths seems like a scam..
there are REALLY GOOD autos beign traded in by people WHO CAN AFFORD A CAR PAYMENT.. and not as many begin traded in by those of who cant..
i dont know about you... but i do care for the environment.. and i cant afford to turn in my two paid off trucks... for another car payment...
ive got 3 kids... grrr...

and the other day we watched a 03 rodeo sport (sme as my wife has) witn some really freaking nice rims and interior options get flattened....
i needed parts off that ****... ****ers...

if they want to "fully recycle" these vehicles they should be sent to the scrap yard instead of cubed..
want to help people out?
make it affordable to make repairs to your "clunker"...
i do not thing this plan has been well thought out.. and OBVIOUSLY tthese overpaid morons dont do their own work on cars...
assholes..

[panhandler62]

It seems to be fulfilling one goal:

http://www.dailyfinance.com/2009/08/...unkers-demand/

Therefore, U.S. automakers are doing something unthinkable a few months ago -- increasing production -- as dealers report shortages of some models.

http://www.kirotv.com/automotive/20376234/detail.html

They're taking small, tentative steps to raise production to meet the revived demand for new cars and trucks sparked by the federal program called Cash for Clunkers. Carmakers are offering overtime or Saturday shifts at slack plants, but aren't willing to go as far as opening shuttered factories, concerned that demand may ebb when the program ends.

Oh, and salvage yards can strip the cars before crushing them. They just have to get the task done within a pre-defined period.

[rambler]

latest stuff on cash for clunkers...

the big wait

http://www.jsonline.com/business/53229787.html

interesting twist from dealers

In some cases, dealers are requiring buyers to sign contracts obligating them to repay the program's $3,500 or $4,500 rebate if the government denies the claim

[panhandler62]

Not much of a suprise. Dealers are notoriously sloppy with paperwork, government agencies are notoriously picky about paperwork and until just about now, the acceptance process was poorly staffed.

If a dealer asked me to sign somehting like that the deal would be over. I would go down the street.