Government is suspending cash for clunkers program,

[shadowcats]

http://www.wlox.com/global/story.asp?s=10822738

well i wonder who got caught in the cookie jar , that they ares suspending this program, they say its cause of funding but it makes you wonder , this program has only be on a short while and they re already haveing problems.

to suspend 'cash for clunkers'
Posted: Jul 30, 2009 7:47 PM EDT
Updated: Jul 30, 2009 7:47 PM EDT

WASHINGTON (AP) - Congressional officials say the government plans to suspend the popular "cash for clunkers" program amid concerns it could quickly use up the $1 billion in rebates for new car purchases.

The Transportation Department called congressional offices late Thursday to alert them to the decision to halt the program, which offered owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle.

The congressional officials spoke on condition of anonymity because they were not authorized to speak publicly. Through late Wednesday, 22,782 vehicles had been purchased through the program and nearly $96 million had been spent. But dealers raised concerns of large backlogs in the system, prompting the suspension.

(Copyright 2009 by The Associated Press. All Rights Reserved.)


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[ahippiechic]

I saw on the news a HUGE crowd at one of the local dealerships here, to take advantage of that program.

[tngirl]

I think it is hilarious myself. Imagine that, another "stimulus" that isn't what it is cracked up to be. And who is going to take the hit? The dealers. Out of the frying pan and into the fire.

[Mini]

They said they done pretty well around here but that the program was out of money already and its been a week...I never thought it was a great idea to begin with myself

[dv8grl]

The information is false...

Cash for clunkers program may be running on empty
WASHINGTON – The government's popular "cash for clunkers" program may be running out of money after only a matter of days as car shoppers flock to dealerships to take advantage of the rebates.

The White House said Thursday it was assessing its options amid concerns the $1 billion budget for rebates for new car sales may have been depleted. The program officially began last week and has been heavily publicized by automakers and dealers.

Transportation Department officials called lawmakers earlier Thursday to alert them of plans to suspend the program as early as Friday. But a White House official said later the program had not been suspended and they were reviewing their options to keep the program funded.

http://news.yahoo.com/s/ap/20090731/ap_on_go_ot/us_cash_for_clunkers

[tngirl]

Yeah, wait until those tax bills hit all of us and see who can afford those new cars. Thanks, but no thanks. I will run my van in the ground before I even consider buying a new car. With the way the economy is I couldn't be sure I could continue making a car payment, let alone pay the insurance on a new car.

By being straight commission, it is really easy to see the effects of the economy on my customers.

[pepperpot]

If they ran out of $$$ with $40 TV converter boxes.....hey, let's offer a $4,500 program!!! :doh

[belcherpi]

The information is false...

Cash for clunkers program may be running on empty
WASHINGTON – The government's popular "cash for clunkers" program may be running out of money after only a matter of days as car shoppers flock to dealerships to take advantage of the rebates.

The White House said Thursday it was assessing its options amid concerns the $1 billion budget for rebates for new car sales may have been depleted. The program officially began last week and has been heavily publicized by automakers and dealers.

Transportation Department officials called lawmakers earlier Thursday to alert them of plans to suspend the program as early as Friday. But a White House official said later the program had not been suspended and they were reviewing their options to keep the program funded.

http://news.yahoo.com/s/ap/20090731/ap_on_go_ot/us_cash_for_clunkers


According to our local news last night, they were suspending this program as of midnight last night.

[jasmine]

according to our noon news today, they said the program was running low, but to keep bringing them in

[hesnothere]

http://money.cnn.com/2009/07/31/autos/cash_for_clunkers_update/?postversion=2009073113


House OKs $2 billion more for Clunker program
House passes bill to add $2 billion for Cash for Clunkers program.

NEW YORK (CNNMoney.com) -- The House on Friday passed a bill to allocate another $2 billion to the Cash for Clunkers program.

The move came after reports on Thursday had raised concerns that the program was out of money.

The bill which diverts $2 billion from a U.S. Department of Energy program loan guarantee program, passed 316-109. The bill will face tough opposition in the Senate, which is expected to take up the issue next week.

[SHELBYDOG]

Popularity, Web snafus nearly broke 'clunkers'


By DAN STRUMPF, AP Auto Writer Dan Strumpf, Ap Auto Writer – 1 hr 4 mins ago
NEW YORK – This was one government stimulus plan that yielded quick results. Maybe too quick.

Far more drivers signed up for the "cash for clunkers" program than anyone thought, overwhelming showrooms, blowing through the initial $1 billion set aside by Congress and leaving dealers panicked over when or if the government would make good on the hefty rebates.

Confusion reigned, even as dollars flowed into dealerships starved for business for months.

The government Web site set up to process rebates of up to $4,500 per new car could not keep up with demand. Washington scrambled to come up with more cash and sent mixed signals about how the program would unfold.

"A borderline train wreck," said Charlie Swenson, general manager at Walser Toyota in Bloomington, Minn. In Glen Burnie, Md., Bob Bell, who owns Ford, Kia and Hyundai dealerships, said his employees were overwhelmed filing for reimbursement from the government's clunky system.

He compared the program to a military operation: "It is a disaster," Bell said. "We met our objective, but the losses were terrible."

The House voted Friday to replenish the program with $2 billion, setting up likely Senate action next week. Sen. Carl Levin, D-Mich., said the administration assured lawmakers that "deals will be honored until otherwise noted by the White House."

Like a car salesman beckoning from the lot, Levin said "people ought to get in and buy their cars" while the hot deals last. The White House joined in the pitch, telling consumers the program is solid through "this weekend." That left unclear what happens after that, until more money is approved for it.

The Car Allowance Rebate System offers owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle, in exchange for scrapping their old vehicle. Congress last month approved the plan to boost auto sales and remove some inefficient cars and trucks from the roads.

It was unclear how many cars had been sold under the program on Friday, but the number was far higher than anyone had expected. About 40,000 vehicle sales were done through the program but dealers estimated they were trying to complete transactions on an additional 200,000 vehicles, said Sen. Debbie Stabenow, D-Mich.

"I think the general public right now is looking for a bargain in any way to spend their money," said Kitty Van Bortel, who owns Ford and Subaru dealerships in Victor, N.Y., "and this was perceived as an incredible bargain and people took advantage of it."

The backlog had been building for weeks. Auto dealers could begin offering the rebate at the beginning of the month, and many began doing so over the July 4 weekend. But it was not until a week ago that dealers could begin filing for reimbursement, leaving them on the hook for as much as $4,500 per car until they get the federal money.

That's when they ran into difficulties with a federal Web site ill equipped to handle the volume of claims and the multiple documents each submission requires. Some dealers said the process took upward of an hour for each transaction, caused repeated rejections and consumed many hours submitting and resubmitting data.

At Walser Toyota in Bloomington, customers began lining up on Monday before doors opened at 7:30 a.m.. Swenson said. By that afternoon, his dealership had done 150 trade-ins under the program. His salesmen worked overnight to scan and submit forms.

But of the 150, he said, only 30 received responses and all of those were rejections.

Dennis and Marcia Strom hurried into that dealership Friday, fearing the rebates might not last, and filled out paperwork for a new car.

"I might have waited until the truck died," Dennis Strom said of his 14-year-old Dodge Dakota. "It's a good vehicle that suits our needs. But it's not worth $3,500."

About 100 people were looking to sign deals there but were holding off because of uncertainty over the rebates.

It took three hours Thursday for employees at one of Sam Pack's Dallas-area Ford dealerships to submit just eight documents. Pack said he feared that many deals made under the program wouldn't be properly reimbursed.

"The details of processing this is beyond what anybody would think is reasonable," he said.

Federal officials said they have increased the capacity of the submission system and added staff to work hot lines and process voucher applications.

In Victor, Van Bortel considered pulling the plug on rebates at the Ford and Subaru dealerships she owns, even though her ads promoting the rebates were locked in for the weekend.

"Honestly, in all my years in the car business, I have never seen such a mess," she said.

Still, it was a mess created by too much action, instead of not enough.

Officials hoped that when the dust cleared from the confusion, the program would be a tonic for the beleaguered auto industry and a benefit for the environment, with many inefficient cars taken off the road.

President Barack Obama said the program has "succeeded well beyond our expectations" and praised the House for moving quickly to establish new financing.

"This is a test drive," Rep. Steve Israel, D-N.Y., said of the program, "and people bought it big time."

Bell, in Glen Burnie, said the rebates have "pulled forward a tremendous market."

"It's wonderful to sell them," he said. "But if you have to pay off a vehicle immediately, you're going to have a severe cash flow deficit."

Dealers are used to working with similar incentive programs offered by auto manufacturers, said John McEleney, chairman of the National Automobile Dealers Association. But the rules are much less stringent under those programs, and automakers generally don't require nearly as much documentation, he said.

His group surveyed dealer franchises using the program and realized the money for it might be getting short. One survey finding: Consumers were opting to use the higher $4,500 rebate over the $3,500 amount by a margin of 2-to-1, eating through the money faster.

"It has been very problematic," McEleney said. "I don't believe that anyone anticipated the volume would be this great."

__


http://news.yahoo.com/s/ap/20090801/ap_on_go_pr_wh/us_cash_for_clunkers_what_happened;_ylt=AsjvRAvPTQ 96sLDEXKfDw7ZH2ocA;_ylu=X3oDMTM1ODlsb3ZvBGFzc2V0A2 FwLzIwMDkwODAxL3VzX2Nhc2hfZm9yX2NsdW5rZXJzX3doYXRf aGFwcGVuZWQEY3BvcwMzBHBvcwMzBHNlYwN5bl90b3Bfc3Rvcm llcwRzbGsDcG9wdWxhcml0eXdl

[hblueeyes]

Cash for clunkers and the tv converter thing and these are the same idiots who want to run our healthcare.

Me

[tngirl]

Cash for clunkers and the tv converter thing and these are the same idiots who want to run our healthcare.

Me
Ahhhhh, come on! Give them a break, they don't know what they are doing.

[pepperpot]

Ahhhhh, come on! Give them a break, they don't know what they are doing.

......or do they?..............

[jeanea33]

I seen on our news here locally. People have turned in some nice cars. I seen junk too. But why waste the good cars? Why not help the ones who cant afford to buy NEW. Why not sell them at a lower price .. hmmmm say 2500.00 to 4500.00 . Give them a small incentive to get their heaps off the roads. Maybe we could recover some of the cash for clunker progam is giving away for free.

[whatever]

I seen on our news here locally. People have turned in some nice cars. I seen junk too. But why waste the good cars? Why not help the ones who cant afford to buy NEW. Why not sell them at a lower price .. hmmmm say 2500.00 to 4500.00 . Give them a small incentive to get their heaps off the roads. Maybe we could recover some of the cash for clunker progam is giving away for free.

I can't believe they are gonna crush these cars because they do "poorly" on gas. Um do they not still sell trucks and suvs that do less than 18 miles per gallon? UM YES!! So basically this is just a PLOY to get people to buy a NEW car. IMHO

[jasmine]

yep, to get them to buy a new car.

They should fix em' up and donate them maybe.
I am sure eventually somewhere down the road that we will all be forced to have "better" vehicles.

[Jolie Rouge]

Clunkers program dents used-car sales
Dealers cry foul over ‘government handout’ to competition
Sacramento Business Journal - by Melanie Turner Staff writer

http://www.bizjournals.com/sacramento/stories/2009/08/03/story3.html

New-car dealers say the cash-for-clunkers program has helped jump-start sales, but financially strapped used-car dealers say the federal program could drive them out of business.

And auto dismantlers — companies that traditionally collect the so-called clunkers for parts and recycling — are still reviewing the long-term effect of the program.

“It’s going to hurt us big time. There’s no question about it,” said Shohre Amir, president and owner of Eagle Truck and Auto in El Dorado. “People were coming to trade those clunkers for another used car and now they’re going to take advantage of the $4,500 kick-back from the government.”

The Car Allowance Rebate System, better known as cash for clunkers, offers up to a $4,500 credit for consumers to trade in gas-guzzlers for more fuel-efficient vehicles — say a Hummer H3 for a midsize sedan.

[whatever]

I thought they had to buy a NEW car. Plus whats the point if say someone trades in a vehicle doing under 18 miles per gallon and buys a HUGE suv that still does 18 miles per gallon?? Did the "goverment" even think of that? My guess NO. It was just some excuse to get people to buy cars. IMO

[farmmnger]

We're trading in our old van and getting a car, this is the only way we can do that. Our van has alot of problems and we would've never been able to sell it. I wish we had known about this program when I traded my SUV in and got a smaller one. I got hardly anything on trade. I think this is a great problem. We're waiting for Obama to approve the small dealership we're buying from. Keep your fingers crossed this happens this week.

[Jolie Rouge]

'Clunkers' rebates look likely for another month
Ken Thomas And Laurie Kellman, Associated Press Writers
20 mins ago

WASHINGTON – Roadblocks disappearing, the Senate cleared the way Tuesday for a vote giving eager car buyers until Labor Day to cash in on rebates up to $4,500 for trading in their gas-guzzlers for new, higher-mileage models.

Senate Majority Leader Harry Reid declared he had the votes to pass a $2 billion "cash for clunkers" measure already approved by the House. It would replenish the all-but-exhausted $1 billion program and provide rebates for up to a half-million more Americans in the next month.

Despite reservations, Reid's GOP counterpart, Mitch McConnell of Kentucky, predicted his party would not block a vote and "the matter will be completed."

"I think the last thing any politician wants to do is cut off the opportunity for somebody who wants to get a rebate to buy a new automobile," said Transportation Secretary Ray LaHood, a former Republican congressman from Illinois.

Senate passage would send the legislation to the White House for Obama's signature and guarantee there would be no interruption in the program that has sent buyers streaming into formerly deserted auto showrooms.

Republicans were still seeking a chance to amend the House version that would extend the program into September, but Democrats were confident the bill wouldn't be changed.

"We'll pass 'cash for clunkers' before we leave here," Reid said after Democrats lunched at the White House with Obama, who has vigorously pushed the extension as a much-needed boost for the economy. Asked whether he had the votes to pass the measure, Reid replied, "Yes."

What Democrats don't have is much time. Obama said that demand would drain the program of its initial $1 billion by Friday. That's also the day senators are to embark on their month-long August recess.

Republicans said they were still negotiating with Reid for the chance to offer changes to the legislation. But McConnell said, "I would anticipate that the matter will be completed some time before the end of the week."

Under the program, buyers of new cars and trucks can get rebates of $3,500 to $4,500 by trading in older models that are then scrapped.

The popular program has allowed about a quarter-million Americans to buy new cars at time when the economy is still in recession and needs a boost in consumer spending.

On Monday, the White House had warned that the program could come to an abrupt halt Friday if the Senate didn't pass the House bill. The legislation would transfer $2 billion from an economic stimulus account that had been set aside to subsidize renewable energy. The new money would carry the program through September, said White House Press Secretary Robert Gibbs.

Through early Tuesday, the clunkers program had recorded 157,000 transactions worth $664 million. Eighty-three percent of the vehicles traded in were trucks or SUVs, while 60 percent of the vehicles purchased were passengers cars, for an average increase in fuel efficiency of 61 percent, Gibbs said.

Opposition to extending the program has been dissipating. One vocal GOP critic, South Carolina Sen. Jim DeMint, said Tuesday he would not try to block the legislation. And three lawmakers who wanted the program limited to the purchase of even more fuel-efficient vehicles said Monday they would back the plan.

Yet Democrats as well as Republicans have raised concerns. Senators in both parties have said it costs too much. Some Democrats have argued that the program should require tougher emissions standards for the new vehicles. Republicans have said it puts the government in the bad position of picking winners and losers.

"People want to know what's going to be next. Cash for shoes? Cash for groceries?" said Sen. Richard Shelby, R-Ala.

Car companies have credited the clunkers program with driving up sales in late July. Ford said its sales rose 2.4 percent in July from the same month last year, its first year-over-year increase since November 2007, while Chrysler Group LLC posted a smaller year-over-year sales drop compared with recent months, helped by the special deals. Other automakers are doing better, too.

Most consumers are buying smaller, more fuel efficient vehicles under the program, according to a list of the top-10 selling cars released by the National Highway Traffic Safety Administration.

That includes Honda Civics, Toyota Corollas and Dodge Calibers. The Toyota Prius hybrid, which gets 46 miles per gallon according to EPA estimates, is the fourth-best-selling car. There is one SUV on the list, the Ford Escape, which also comes in a hybrid model that can get up to 32 miles per gallon.

___

Associated Press writers Stephen Manning and Joan Lowy in Washington and Tom Krisher in Detroit contributed to this report.

On the Net: Car Allowance Rebate System: http://www.cars.gov



http://news.yahoo.com/s/ap/20090804/ap_on_go_co/us_cash_for_clunkers

[Jolie Rouge]

They should fix em' up and donate them maybe.

News report here states that theyare required to reove and destroy the engine; the rest is broken down for parts then crushed. They were breaking down some vehichles that were in good condition, the ownerof the junk yard being interviewed said it was a waste, but required by the law.

[Jolie Rouge]

Did anyone here realise this; by simply appling for the Cash for Clunkers program you give access to all personal, public and private info to the goverment an whomever they see fit to share it with.. for whatever reason they see fit.


This application provides access to the DoT CARS system. When logged on to the CARS system, your computer is considered a Federal computer system and is the property of the U.S. government…

Any or all uses of this system and all files on this system may be intercepted, monitored, recorded, copied, audited, inspected, and disclosed to authorized CARS, DoT, and law enforcement personnel, as well as authorized officials of other agencies, both domestic and foreign.

US Government “Cash for Clunkers” disclaimer 2009




Roll call vote: Senate rejects Cash-for-Clunkers aid to charities and poor

By Michelle Malkin • August 6, 2009 08:19 PM
http://michellemalkin.com/2009/08/06/roll-call-vote-senate-rejects-cash-for-clunkers-aid-to-charities-and-poor/

Thought you be interested in this roll call vote on Sen. Tom Coburn’s proposal to allow traded-in Cash-for-Clunkers cars to be used to assist charities and poor families.

Here’s the text of the proposal: http://thomas.loc.gov/cgi-bin/query/F?r111:1:./temp/~r111VdlCB5:e0:


SA 2304. Mr. COBURN submitted an amendment intended to be proposed by him to the bill H.R. 3435, making supplemental appropriations for fiscal year 2009 for the Consumer Assistance to Recycle and Save Program; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SECTION __X. ASSISTANCE TO CHARITIES AND FAMILIES IN NEED.

Section 1302 of the Supplemental Appropriations Act, 2009 (Public Law 111-32; 123 Stat. 1909; 49 U.S.C. 32901 note) is amended–

(1) in subsection (a)(2)(B), by inserting “or for donation to a charity”; and

(2) in subsection (c)(2)–

(A) in subparagraph (A), strike “For each” and insert “Except as provided in subparagraph (C), for each”;

(B) by redesignating subparagraph (C) as subparagraph (D); and

(C) by inserting after paragraph (B) the following:

“(C) DONATION TO CHARITY.–For each eligible trade-in vehicle surrendered to a dealer under the Program, the dealer may dispose of such vehicle by donating such vehicle to–

“(i) an organization that–

“(I) is described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code, including educational institutions, health care providers, and housing assistance providers described in such section; and

“(II) certifies to the Secretary that the donated vehicle will be used by the organization to further its exempt purpose or function, including to provide transportation of individuals for health care services, education, employment, general use, or other purpose relating to the provision of assistance to those in need, including sales to raise financial support for the organization; or

“(ii) a family that does not have sufficient income to afford, but can demonstrate a need for, an automobile.”.


Who could be against such an amendment? 56 Senators who torpedoed Sen. Coburn’s proposal. Here’s the breakdown: http://senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=111&session=1&vote=00266



Meanwhile: Senate clears $2 billion “clunkers” extension.
http://news.yahoo.com/s/nm/20090807/bs_nm/us_autos_clunkers_senate;_ylt=AhMZxhCwuXijgTCoNc3n IOms0NUE;_ylu=X3oDMTM2MzBtcTJmBGFzc2V0A25tLzIwMDkw ODA3L3VzX2F1dG9zX2NsdW5rZXJzX3NlbmF0ZQRjcG9zAzIEcG 9zAzYEcHQDaG9tZV9jb2tlBHNlYwN5bl90b3Bfc3RvcnkEc2xr A3NlbmF0ZWNsZWFycw--

From the angle of conserving and recycling—

I have always said that many people are naturally conservationsists and for recycling/reusing where possible…not just the fraud “greenies” we have making money of environmentalism today.

My parents (of the depression & WWII generation) are the best at taking care of their things and reusing even the least little nail or screw if need be.
They know how to conserve and reuse for their own good and the good of our land.

I say all of that because if you are a truly into conserving, reuse, and not wasting what you have, you would be all for reissuing these “clunkers” to charity groups so that can use them in whatever way they see fit.

But every NO vote (except one R and one I) to Coburn’s amendment is a Democrat….you know, the one’s for recycling and saving the environment.

Clearly shows that conserving is just a way to get power for them and not truly about conserving at all. They are not consistent on the issue unless it brings them power in some way. Also shows how cold-hearted they are towards charity in this country.

They think they can do better.

This is just one more thing that makes me sick about our government this week! (& every week since January)

Oh…thanks to Tom Coburn for trying and for outing the hypocrites in the bunch!

They’re destroying some perfectly good vehicles that could be a boon to some poor family.

[shadowcats]

but for most its it s something they wount qualify for reguardless . its a shame that they are destroying the cars instead of giving them to others who could really use them,

[Jolie Rouge]

Notary turns auto executioner
By STEVEN WARD - Advocate staff writer
Published: Aug 17, 2009

http://media.2theadvocate.com/images/clunker_081709.JPG


DENHAM SPRINGS — Notary Randy Owens mainly does paperwork for the Baton Rouge-based All Star Automotive Group dealerships. On Thursday, Owens was a killer. A truck killer.

Ever since the federal government’s multibillion-dollar Car Allowance Rebate System, or CARS program, also known as Cash for Clunkers, started in late July, Owens has been All Star Automotive’s go-to guy for disabling the engines of clunkers. Owens drove to All Star Dodge in Livingston Parish on Thursday to put a green 1996 Chevrolet Silverado pickup out of its misery by literally switching liquids.

Actually, Owens and All Star Dodge and All Star Ford General Manager Buddy Wells said the truck in question, with 240,316 miles on it, could run until the mileage hits 300,000 or 350,000. But the truck’s owner, a Baton Rouge man in his 50s who drove the truck to and from his job at a plant in Ascension Parish, decided to trade it in for $4,500 that went toward a brand-new, more fuel-efficient truck.

Wells said the Silverado is one of 21 clunkers at his All Star Ford and All Star Dodge lots. Owens, whose official title is fleet service and collision center consultant, said Thursday’s truck execution was his 21st since the CARS program started.

Wells climbed into the truck, parked in the back lot with his other clunkers, and started the engine. Then Wells drove it to one of the All Star Dodge service bays where oil technician Will Cavaness drained the truck of its life blood, oil. After that, the truck was driven to a spot where it can be easily towed after the deed is done.

Then All Star Dodge employees brought out a large container with a crystal-clear liquid that looked as thick as cane syrup. On the container, it actually states, “motor killer.”
The liquid is sodium silicate, the federally mandated substance car dealers are required to pour into the engine to disable it. The fatal amount is two quarts; Wells called the sodium silicate “liquid glass.”

While Cavaness held a funnel in the oil opening of the V-8 engine, Owens poured the liquid inside. Then Owens climbed into the driver’s seat, with the car door open, and started the engine. Owens pushed his foot down hard on the gas pedal, running the engine as harshly as he could. “I try to keep it at 2000 rpms,” Owens yelled out of the truck.

When asked how he felt, Owens said, “I’m watching a good engine die.” Owens shook his head and looked at his watch while the engine purr turned into a slower, growling sound. “There’s going to be one less hot rod,” Owens said, smiling to Wells who was watching the event from a few feet away.

The “check engine” light popped on after four minutes.

The engine sounded ruffled but it was still running five minutes later.

“It’s fighting. It’s fighting,” Owens said.

Owens kept revving the engine.

Then, about seven minutes into the process, the engine made a loud and ugly knocking noise. The noise and the burning stench in the air disappeared soon after. The engine was dead. “She’s a goner,” Owens said.

Owens tried to start the engine three times. It was still dead.

Owens climbed out of the truck, filled out some paperwork and put a sticker on the engine. “This engine is from a vehicle that is part of the Car Allowance Rebate System. It has significant internal damage caused by operating the engine with a sodium silicate solution instead of oil,” the sticker states.

Owens said the wrecking service All Star Automotive uses tows the clunkers away to a service junkyard in Baton Rouge, Pull-A-Part on Greenwell Springs Road. All Star Automotive, which has about 200 clunkers at all eight of its dealerships in the greater Baton Rouge area, has a contract with Pull-A-Part. Once there, the parts that can be sold will be sold and then the service yard will crush the clunkers, Owens said.

Because of federal rules, the junkyards have 180 days from receipt of the clunkers to crush or shred the vehicles. Officials at Pull-A-Part in Baton Rouge could not be reached for comment. Because the program began at the end of July, it’s too soon for any of the clunkers to be crushed yet, said Ken Ross, manager of the LKQ Service Yard on La. 415 in Port Allen.

Ross said his yard has a contract to buy clunkers from Bryan Harris Chevrolet in Baton Rouge. There are 12 clunkers at the Port Allen yard and Ross said he is expecting another 25 to come in during the next two weeks. Customers have been visiting LKQ to pull the parts off the clunkers they want, Ross said.

Crushing a clunker, Ross said, will only take about five minutes.

Wells said he has definitely seen his business increase since the CARS program began.
“I haven’t had my new inventory this low since the 1980s,” Wells said.


http://www.2theadvocate.com/news/53398372.html

[Jolie Rouge]

A Must See Cash For Clunkers

http://www.youtube.com/watch?v=mqfuZ7hiap0


Administration plans to wind down clunkers program
Ken Thomas And Dan Strumpf, Associated Press Writers
1 hr 7 mins ago

WASHINGTON – The Obama administration is developing plans to wind down the popular Cash for Clunkers program and could announce by Friday when the incentives will no longer be available.

Transportation Secretary Ray LaHood said Wednesday the department would announce within 48 hours how it intends to discontinue the program that offers car buyers rebates of $3,500 or $4,500 for trading in older vehicles for new, more fuel-efficient models. Department officials met with car dealer trade groups on Wednesday to discuss how the program will eventually end and respond to complaints over a backlog of rebate payments to dealers.

Through early Wednesday, auto dealers have made deals worth $1.81 billion and are on pace to exhaust the program's $3 billion in funds in early September. The incentives have generated more than 435,000 vehicle sales but dealers want a clear plan on when the rebates will no longer be available so they don't end up on the hook for any of the incentives.

"We want to make sure that dealers know when we're getting close" to running out of the money that was allocated for the program, LaHood told reporters. LaHood said he recognized that "dealers are frustrated. They're going to get their money."

On Thursday, General Motors Co. said it would begin providing cash advances to its dealers to help cover any cash shortfalls related to the program. The automaker said it will provide the advances for up to 30 days for dealers who have already completed a sale and they will be available as long as the program remains in effect.

The National Automobile Dealers Association said its trade group met with Transportation officials to discuss dealer concerns about reimbursement delays and ways of fixing the problems. NADA spokesman Charles Cyrill said the association "stressed the importance of addressing — as soon as possible — how the program will end, including the possible suspension of the program."

Dealers have complained of delays in getting their reimbursements approved, causing a cash crunch at their dealerships. Dealers typically borrow money to put new cars on their lots and must repay those loans within a few days of a sale.

"We do not know how many deals are in the pipeline. We don't know how many dollars are left in the program at this very moment," said Ted Smith, president of the Florida Automobile Dealers Association. "That's fundamental to the health of the dealerships that are participating. If you run out of money before you run out of deals, that's not a good situation."

Some dealers are no longer participating in the Clunker program. The Greater New York Automobile Dealers Association, which represents dealerships in the New York metro area, said about half its 425 members had left the program because they cannot afford to offer more rebates.

Melanie Bible, spokeswoman for the Pennsylvania Automotive Association, also said about half of the state's 950 dealerships have stopped cutting new Cash for Clunkers deals. She said the figure was anecdotal because no formal survey of dealers had been conducted.

The financial arms of several automakers have begun offering help to cash-strapped dealerships, in some cases by floating loans to help cover clunker-related shortfalls. Toyota Financial Services is offering loans to dealers for up to 60 days to cover the lag between a dealership's payment and its reimbursement. The financial-services arms of Honda Motor Co., Nissan Motor Co., Ford Motor Co. and other automakers are offering similar programs.

The government's online reimbursement system was flooded with reimbursement requests shortly after the program began in late July, overwhelming the computer system and staff set up to process the deals. That led to big delays for dealers trying to file the paperwork they needed to get paid back for the rebates.

LaHood said some of the submitted paperwork has been incomplete or inaccurate, leading to delays. He acknowledged the Transportation Department did not have enough people to process the paperwork but said DOT was ramping up staff.

DOT said earlier this week it was tripling its work force to handle the rebates and expected to have 1,100 workers dealing with the paperwork by the end of the week.

Michelle Primm, managing partner of a four-franchise dealership in Cuyahoga Falls, Ohio, said her store has stopped making deliveries on clunkers purchases until the sales are approved by the federal government. Primm's dealership has made 31 clunkers deals since the program was launched last month, but has only been paid for 3.

"I've got payroll and I've got taxes to pay and all those things," she said. "We're small."

http://news.yahoo.com/s/ap/20090820/ap_on_bi_ge/us_cash_for_clunkers;_ylt=Au_MqGZ3HMOeeQqffay4eZlb bBAF;_ylu=X3oDMTJudjFwZG50BGFzc2V0A2FwLzIwMDkwODIw L3VzX2Nhc2hfZm9yX2NsdW5rZXJzBGNwb3MDNgRwb3MDNgRzZW MDeW5fdG9wX3N0b3JpZXMEc2xrA3doaXRlaG91c2V0bw--

[Jolie Rouge]

A disaster from which Washington will learn absolutely nothing: http://freep.com/article/99999999/BUSINESS01/90730090&template=theme&theme=CASH_FOR_CLUNKERS


Transportation Secretary Ray LaHood assured car dealers Wednesday that they will be reimbursed for sales made under the cash-for-clunkers program and said the department would soon offer plans to wind down the popular car incentives.

LaHood said the department will announce by Friday how it intends to discontinue the program that offers car buyers rebates of $3,500 to $4,500 for trading in older vehicles and buying new, more fuel-efficient models. Department officials met with car dealer trade groups Wednesday to discuss complaints over a backlog of rebate payments to dealers and how the program will eventually end.

“I know dealers are frustrated. They’re going to get their money,” LaHood told news reporters.


And where is the money coming from? Y-O-U. GM is providing cash advances to dealers waiting for their C4C reimbursements. Via Autoblog: http://www.autoblog.com/2009/08/20/gm-to-reimburse-dealers-until-cash-for-clunkers-rebates-arrive/


According to GM, that should give each dealer enough liquidity to keep operating while waiting for the government to cut a check. Of course, since GM accepted billions of dollars in federal loans to avoid bankruptcy and then, after entering Chapter 11 bankruptcy anyway, emerged as partly owned by the U.S. government, the money’s really all coming from the place. It just seems that GM has a better accounting department than the U.S. Treasury.

Cash for Clunkers may be ending — for now. But I guarantee you, the architects of this auto entitlement subsidy will be back. The redistributionist impulse is incurable.

And this is how the government defines “success” ?

It just makes the thought of letting the government run a large slice of the economy and our lives via “health care reform” more and more absurd.

[Jolie Rouge]

Cash for Clunkers program heads into final day
Emily Fredrix, Ap Business Writer
2 hrs 6 mins ago

It was a race to the finish for dealers and customers alike as the government's Cash for Clunkers program headed into its final lap on Monday.

Over the weekend, car dealers across the country watched their lots grow empty as crowds rushed to trade in gas guzzlers after the government said that the $3 billion rebate program would end at 8 p.m. EDT Monday, two weeks earlier than expected.

Transportation Secretary Ray LaHood, speaking to reporters in Norristown, Pa., called the program an unprecedented success and a boon for car dealers, automakers, scrap yards and financial institutions.

"Once the program ends at 8 o'clock there will be 700,000 to 800,000 cars that have been sold, most of them fuel efficient," replacing gas-guzzling cars and trucks, LaHood said.

Transportation officials said through early Monday, dealers had submitted 625,000 vouchers totaling $2.58 billion and expected to work up to the deadline to submit the proper paperwork.

Adding to the urgency, some dealers said they would stop Cash for Clunkers sales even earlier to make sure the government reimbursed them for the rebates — or because they didn't have enough eligible cars left.

"We thought about it a couple weeks ago," said Annette Palmer, 51, at Town and Country Honda in Berlin, Vt., on Saturday with her husband. They hoped to trade in a 1999 Jeep Grand Cherokee for a Honda CR-V.

"We kind of dragged our feet. Then we heard it was closing and we picked up our feet and ran," she said.

Though short of some new models, such as the Ford Focus, Honda Civic, Toyota Corolla and Nissan Altima, many dealers were still selling as many cars as they could before Monday night's deadline.

Standing outside one of his Hyundai dealerships in Appleton, Wis., John Bergstrom said customers traded in 100 clunkers throughout his fleet of 20 dealerships on Saturday and 100 the day before. They were his two biggest sales days during the clunkers program.

"That's about as good as it gets," Bergstrom said. "It's going out with a bang."

In all, Bergstrom said his dealerships — whose brands include Ford, GM and Toyota — sold 800 cars during the program, boosting sales 30 percent. He had to bring in extra staff to deal with the paperwork, but the sales were worth the hassle, Bergstrom said.

Cash for Clunkers has been wildly successful in spurring new-car sales and getting gas-guzzling models off the road, though some energy experts have said the pollution reduction is too small to be cost-effective. Customers receive rebates of between $3,500 and $4,500, depending on the improvement in fuel efficiency from their old vehicle to their new one. As of early Friday, nearly half a million cars had been sold through the program.

But the new sales left many dealers worried about not being reimbursed by the government. As of Friday, dealers had been reimbursed for just a small fraction of the billions in sales.

Some dealers chose to stop participating over the weekend so they could have enough time to process and file the paperwork, including AutoNation Inc., the nation's largest auto dealership chain.

Martin Main Line Honda in the Philadelphia suburb of Ardmore stopped its Cash for Clunkers sales at noon on Saturday. But by late afternoon there were still groups of people wandering the lot.

General sales manager Michael Freeman said the program had been "overwhelming," with 115 clunker sales and big surges in customer traffic at the start and now at the end. He's aiming to get the final stack of paperwork filed before Monday's deadline.

"I have people upstairs, that's all they're doing — paperwork," he said. "The backlog is a nightmare, and it's starting to be a nightmare at the end."

http://news.yahoo.com/s/ap/20090824/ap_on_bi_ge/us_clunkers_final_weekend;_ylt=AlRz5BDd2MmLe2bj6El Vsq5H2ocA;_ylu=X3oDMTJzZ3JjbzkwBGFzc2V0A2FwLzIwMDk wODI0L3VzX2NsdW5rZXJzX2ZpbmFsX3dlZWtlbmQEY3BvcwMzB HBvcwMzBHNlYwN5bl90b3Bfc3RvcmllcwRzbGsDY2FzaGZvcmN sdW5r

[ElleGee]

Yay!!!

I was getting tired of the car commercial after car commercial hawking this program... I counted 12 in one hour. That's a bit excessive..

[Jolie Rouge]

LaHood: Gov't paid dealers $1.2B for 'Clunkers'
Ken Thomas, Associated Press Writer
1 hr 16 mins ago

WASHINGTON – Transportation Secretary Ray LaHood says the government has approved $1.22 billion in reimbursements to car dealers for sales under the Cash for Clunkers program.

LaHood said Thursday the government is on track to pay eligible dealers by a Sept. 30 deadline. More than 40 percent of the applications from dealers have been paid.

The rebates led to more than 690,000 new car sales at a taxpayer cost of $2.88 billion. Auto dealers have said the Obama administration has been slow to pay them for the car incentives, which ended on Aug. 24.

http://news.yahoo.com/s/ap/20090910/ap_on_re_us/us_cash_for_clunkers

[Jolie Rouge]

Cash for Clunkers’ failure: minorities, poor people hardest hit.
Or: Why Johnny Can't Drive.
Posted by Moe Lane Monday, November 7th at 10:30AM EST

Washington Post’s Ezra Klein’s substitute writer Brad Plumer got the unenviable job of having to admit that the government’s infamous Cash-for-Clunkers stealth auto dealership bailout – in which people traded in still-useable cars in exchange for trade-in money for a new car – didn’t particularly stimulate the economy, didn’t improve US car manufacturer’s market share, and “increased average fuel economy in the United States by just 0.65 miles per gallon.” The trigger event for this admission was this Resources For the Future report that is fairly damning, in its somewhat dry and equation-laden way: of course, we on the Right were all yelling about this issue right from the start, but it’s still nice to see some math backing us up.

Still, Klein’s substitute doesn’t consider another economic factor: what happened as a result of taking used cars off of the market. You see, there’s a considerable demand for almost worn-out cars: poor people, young people, and/or urban minorities can maintain them well enough to be cost effective – if the price is low enough. And what happens, class, when demand remains the same but the supply decreases?

That’s right: prices go up. http://content.usatoday.com/communities/driveon/post/2011/01/as-2011-begins-used-car-prices-are-skyrocketing-/1


It’s not unusual for price tags to be up $3,000 in some product segments in the last five years.

And the classic “beater” – a high-mileage, $1,500 used car that can handily take you around town on your errands – is fast becoming a thing of the past, according to some auction houses.

That article indicated that there had been a six percent increase in 2010 on used car prices overall. For Democratic legislators – and other people slow of brain – that increase represents a genuine loss of buying potential among poor, minority, and young adult voters. In other words, precisely the groups that Democrats were supposedly trying to help by ‘stimulating’ the economy. And, as noted above: all of this was pointed out at the time, of course.

To sum up: I know that the temptation is strong to look at the people most affected by this, note that they belong to groups that are widely considered to be disproportionately Democrat-leaning, mutter “Elections have consequences,” and leave it at that. In fact, that was my first reaction. But these folks are still American citizens, and it’s not actually fair to let the Democrats get away with making them poorer. So think of this as an opportunity to do some outreach and turn all of this into a teachable moment. After all, civic improvement is everyone’s responsibility…

http://www.redstate.com/moe_lane/2011/11/07/cash-for-clunkers-failure-minorities-poor-people-hardest-hit/

comments

Poor and minorities don’t give big bucks to presidential campaigns, unions do.

...

This is not an unintended consequence. Democrats don’t care if poor urban minorities have cars. In fact, they would prefer that they be forced to use government-subsidized public transit, thereby putting one more area of their life in the “dependent-on-government” category. This provides just one more reason to lock them into voting Democrat (“Republicans are going to cut funding for vital public transportation services”)

...

Not only that, public transportation leaves us vulnerable to terrorism. Terrorists in Israel, Europe, and other places, including the United States, focus on trains and buses. Why? Because you can kill a lot of people with one bomb. Try throwing a grenade at a freeway with cars on it, even during rush hour. You might not kill anyone. But set off the same grenade in a train or a bus: you’ll kill at least a half dozen and leave many others bloodied and maimed for the pictures that you’ll need to promote whatever terrorist cause you’re sponsoring.

Public transportation is yet another pay phone solution in a smart phone economy. It benefits unionized government employees but leaves the most vulnerable in our society dependent on government and vulnerable to terrorists.