The Federal Government has been on a spending spree this month by allocating $3 billion towards "CASH FOR CLUNKERS." The goal of the program was to give people incentive to trade in their old car for a new one to stimulate the car industry. People were able to obtain up to $4500 in incentives. However, many experts have stated that this caused a limited supply of good used cars and parts for the month of August. However, I am sure one can still obtain a great deal on used cars.
There will be many last minute shoppers looking for those deals this weekend. The car industry got the needed boost. However, it was only a short term fix. I believe American car companies will still need to slash and cut down layers of management to become more efficient like foreigh motor companies. Many people complained that the incentives should only be allowed on American cars. Well, many foreign cars are built here in America.
"When I heard the program was ending on the news last night, I was here this morning when the doors opened," Mason said yesterday, while filling out paperwork to buy a 2009 Honda Fit from a dealership in Oakland, California. He said it was the only place that had the car in the color he wanted. "I've had my eye on it," he said. "I am here today because I wanted to make sure all my paperwork is processed in time." The program, formally known as the Car Allowance Rebate System, or CARS, may help the industry's new-vehicle retail sales in the U.S. top 1 million in August for the first time in 12 months, J.D. Power & Associates forecast. cited Cash For Clunkers Review Article.
The law that took effect July 1 offered consumers a $4,500 credit if the new car they are buying gets 10 miles-per-gallon better gas mileage than the model they are trading in. Light trucks must get 5 mpg better than the older model. For a $3,500 credit, the improvement for cars must be 4 mpg or better, and for light trucks, 2 mpg. The trade-in vehicle must be no older than a 1984 model and get 18 mpg or less in combined city/highway fuel economy. 22 Miles Per Gallon. New passenger cars purchased with the discount must get at least 22 mpg in city/highway fuel economy, and light trucks must get at least 18 mpg. cited Cash For Clunkers Review Article.
We will wait until next week to obtain the real results of this program. What is the next Government Program? Who wants to guess?
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This blog makes me wonder how many first time home buyers will wait till the last minute thinking they can buy and close a house within a few weeks of the deadline? It seems like no matter how much we tell people what to expect they always think that they are the exception to the rule!
I looked at the program and my car qualifies but the program requires the old car be scrapped which limits the trade-in allowance to scrap-metal value. Not good for a car with a resale value more than $4500.
Thanks for the great comments. Keep it coming
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Thanks for putting together this informative post for us. Have a great Sunday.