Cash for clunkers...the final installment perhaps
 

WASHINGTON (AP) -- The White House said Thursday it was reviewing what has turned out to be a wildly popular "cash for clunkers" program amid concerns the $1 billion budget for rebates for new auto purchases may have been exhausted in only a week.

Transportation Department officials called lawmakers' offices 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 officials there were assessing their options.

"We are working tonight to assess the situation facing what is obviously an incredibly popular program," White House press secretary Robert Gibbs said of the Car Allowance Rebate System. "Auto dealers and consumers should have confidence that all valid CARS transactions that have taken place to date will be honored."

Gibbs said the administration was "evaluating all options" to keep the program funded.

A Transportation Department official said the department was working with Congress and the White House to keep the program going. The administration officials spoke on condition of anonymity because they were not authorized to speak publicly about the discussions.

The CARS program offers owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle.

Congress last month approved the program to boost auto sales and remove some inefficient cars and trucks from the roads. The program kicked off last Friday and was heavily publicized by car companies and auto dealers

Through late Wednesday, 22,782 vehicles had been purchased through the program and nearly $96 million had been spent. But dealers raised concerns about large backlogs in the processing of the deals in the government system, prompting talk of a possible suspension.

A survey of 2,000 dealers by the National Automobile Dealers Association found about 25,000 deals had not yet been approved by NHTSA, or nearly 13 trades per store. It raised concerns that with about 23,000 dealers taking part in the program, auto dealers may already have surpassed the 250,000 vehicle sales funded by the $1 billion program.

"There's a significant backlog of 'cash for clunkers' deals that make us question how much funding is still available in the program," said Bailey Wood, a spokesman for the dealers association.

Alan Helfman, general manager of River Oaks Chrysler Jeep in Houston, said he was worried that the government wouldn't pay for some of the clunker deals his dealership has signed because they aren't far enough along in the process.

His dealership has done paperwork on about 20 sales under the clunker program, but in some cases the titles haven't been obtained yet or the vehicles aren't yet on his lot.

"There's no doubt I'm going to get hammered on a deal or two," Helfman said.

The clunkers program was set up to boost U.S. auto sales and help struggling automakers through the worst sales slump in more than a quarter-century. Sales for the first half of the year were down 35 percent from the same period in 2008, and analysts are predicting only a modest recovery during the second half of the year.

So far this year, sales are running under an annual rate of 10 million light vehicles, but as recently as 2007, automakers sold more than 16 million cars and light trucks in the United States.

Even before the suspension, some in Congress were seeking more money for the auto sales stimulus. Rep. Candice Miller, R-Mich., wrote in a letter to House leaders on Wednesday requesting additional funding for the program.

"This is simply the most stimulative $1 billion the federal government has spent during the entire economic downturn," Miller said Thursday. "The federal government must come up with more money, immediately, to keep this program going."

Michigan lawmakers planned to meet on Friday to discuss the program.

Brendan Daly, a spokesman for House Speaker Nancy Pelosi, D-Calif., said they would work with "the congressional sponsors and the administration to quickly review the results of the initiative."

General Motors Co. spokesman Greg Martin said Thursday the automaker hopes "there's a will and way to keep the CARS program going a little bit longer."

Re: Cash for clunkers...the final installment perhaps
 

Not so fast...

http://www.autoblog.com/2009/07/31/r...through-today/

Supposedly they are going to try to find more money. As if money even matters anymore.

If I were the government, I would have $9,000,000,000,000,000,000.00, just for the effort of writing the number down in the completely fictitious ledger that says I can spend that much, if I want to.

Re: Cash for clunkers...the final installment perhaps
 

And here is the list of eligible vehicles.


We're in there... 1992-1997s :mad:

http://www.edmunds.com/cash-for-clun...-vehicles.html


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Re: Cash for clunkers...the final installment perhaps
 

I am actually pleased that they ran through the first billion so quickly (a week, as it?) I'd rather not see it extended, but how long can they keep it going if it's costing (us taxpayers, btw) a billion a week? The sooner they put this to rest, the fewer SVX's will be "killed".

Have you read the procedure for "killing" the engine? (They use the euphemism "disablement".) Makes me cry to think they may be doing this to one of our beloved cars just for money. (And not much more than you would get for a trade, in my opinion.)

Here is a link to the "disablement" procedure. Anyone who does this WILLINGLY to their car is MUCH worse (imho) than someone who ACCIDENTALLY totals one.


How will you spend those "thirty pieces of silver"?

Re: Cash for clunkers...the final installment perhaps
 

For those of you who can't open a PDF file...

How To Use Sodium Silicate
Engine Disablement Procedures for the CARS Program

Taken from Page 127 in the NHTSA Final Rule

THIS PROCEDURE IS NOT TO BE USED BY THE VEHICLE OWNER

THESE STEPS ARE FOR PARTICPATING CARS DEALERS ONLY



Perform the following procedure to disable the vehicle engine.

1. Obtain solution of 40% sodium silicate/60% water. (The Sodium Silicate (SiO2/Na2O) must have a weight ratio of 3.0 or greater.)

2. Drain engine oil for environmentally appropriate disposal.

3. Install the oil drain plug.

4. Since the procedure is intended to render the engine inoperative, drive or move the vehicle to the desired area for disablement.

5. Pour enough solution in the engine through the oil fill for the oil pump to circulate the solution throughout the engine. Start by adding 2 quarts of the solution, which should be sufficient in most cases.

CAUTION: Wear goggles and gloves. Appropriate protective clothing should be worn to prevent silicate solution from coming into contact with the skin.

6. Replace the oil fill cap.

7. Start the engine.

8. Run engine at approximately 2000 rpm (for safety reasons do not operate at high rpm) until the engine stops. (Typically the engine will operate for 3 to 7 minutes. As the solution starts to affect engine operation, the operator will have to apply more throttle to keep the engine at 2000 rpm.)

9. Allow the engine to cool for at least 1 hour.

10. With the battery at full charge or with auxiliary power to provide the power of a fully charged battery, attempt to start the engine.

11. If the engine will not operate at idle, the procedure is complete.

12. If the engine will operate at idle, repeat steps 7 through 11 until the engine will no longer idle.

13. Attach a label to the engine that legibly states the following:

This engine is from a vehicle that is part of the Car Allowance Rebate System (CARS). It has significant internal damage caused by operating the engine with a sodium silicate solution (liquid glass) instead of oil.
14. File this document in the file for the new vehicle purchase.

I could never do this to ANY running car. People are just sick in the head. And like lady said, it's costing us taxpayers.:mad:

Re: Cash for clunkers...the final installment perhaps
 

Yes, that's a twin turbo S80. This all makes me pretty sick.

Re: Cash for clunkers...the final installment perhaps
 

I really don't get how putting more people in debt is a good thing? Sure we'll give you 4500 dollars towards your 15k+ debt your going to accumulate. Not to mention the debt added to the US debt. I just don't see how taking a perfectly good car and trashing it makes sense.

Re: Cash for clunkers...the final installment perhaps
 

Those guys in the video look like they would enjoy tying cats into burlap bags and then throwing them into the river to hear them scream. :mad:

You can hear the car crying. :(

Re: Cash for clunkers...the final installment perhaps
 

Yes they do. :( That was disturbing... I read on one of the motorcycle forums that they were thinking about putting motorcycles in the mix. Not to destroy, but you could get money towards a motorcycle rather than a new car.

Re: Cash for clunkers...the final installment perhaps
 

Let me see if I have this right...

The government gives me $3500 to buy a car which gets more than 3 mpg than the one I have...

If my old car only got 20mpg, I would use 50 gallons of gas for every 1000 miles I drive.
If my new car gets 25 mpg, I use 40 gallons of gas for the same 1000 miles.

Saving 10 gallons of gas every 1000 miles (at say, $3.50/gallon) is $35.00.

Assuming the average annual mileage is 15,000 miles a year, I am saving a whopping $525.00 every year! ;)

But to save this money, I have to go into debt for at least $20,000 for a new car. This car (after the $3,500 allowance), plus the addition of sales tax, registration, etc. is still an $18,000 debt.

$18,000, financed at about 5.5%, is $344.00 per month for 60 months

$344.00 x 12 months = $4128.00 a year that I have to spend to "save" that $525.00. And that doesn't include the cost of the gas I have to put in it.

NEW CAR: $4128.00/year plus $2100.00/year in gas (600 gallons/year at $3.50) = $6288. Divided by 12 months is $524.00 a month to drive the new car.


OLD CAR: $2625.00/year in gas (750 gallons/year at $3.50) divided by 12 months, is $218.00 a month to keep what I have.

Even counting unexpected mintenence on the older car, I am still well ahead financially. Or am I missing something hers and am looking at this all wrong?

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Re: Cash for clunkers...the final installment perhaps
 

Watching this video makes me sick, is like watching an abortion.. :mad: S***!!

Re: Cash for clunkers...the final installment perhaps
 

I agree with you...

Right! I hate this.

Re: Cash for clunkers...the final installment perhaps
 

I can't see what is in the pic (I'm at work) but if it is the video I think it is please explain to me how that car is worth less then 3500/4500. I know you deal with these types of cars so tell me what that thing is really worth.

Like I said if it is the car I think it is I would have bought it for 3500 cause that is a damn nice ride.

Re: Cash for clunkers...the final installment perhaps
 

10 characters.

Re: Cash for clunkers...the final installment perhaps
 

so is the first gen legacy turbo, so sad
2 of the best cars subaru ever made