The problem is that participating car dealers are currently on the hook for the trade-ins that they made in good faith, but have yet to see any of the deals signed off on by the National Highway Traffic Safety Administration. There are problems with the online system, you see.
Of course there are. It’s a government program, remember?
[Minnesota Auto Dealers Association vice president Scott] Lambert said the government has created a program that’s “so big and cumbersome that it can’t find a way to accept anything. We’re sending in good, reliable deals.”
It’s nerve-racking for the dealers, he said, because they have given the customer $4,500 and now the dealers need to be reimbursed.
Note that the program started on July 1, they only published the actual rules Friday, and they’re still working out how to get the dealers their money. If you’re shrugging over that, consider this: what’s essentially happening here is that car dealerships are giving $4,500 interest-free, unguaranteed loans to the federal government… and the determination of whether or not those loans get paid off is more or less going to be at the discretion of mid-level bureaucrats at the NHTSA. Even if they do repay every loan, it’s apparently going to take time for the system to smooth out; it’s an open question whether it’ll straighten out before the official end of the program in November. And the car dealerships - the only producers of goods in this particular equation, and the ones that the government is ostensibly trying to help - get all the headaches.
I can’t improve on Glenn Reynold’s response to this: “Don’t worry, though — I’m sure they’ll do a better job with your prostate.” Says it all, really.
Moe Lane
Crossposted to Moe Lane.

And it might need more money
djemi Thursday, July 30th at 9:40AM EDT (link)I was listening to 1240 Am up here in Michigan this morning and I heard Mark Schauer (D 07) say that this joke for a program may need more money because of demand.
I would say that if I was a Ford dealership I wouldn’t be trying to use this clunkers deal, given what’s essentially happening here is that car dealerships are giving $4,500 interest-free, unguaranteed loans to the federal government… and the determination of whether or not those loans get paid off is more or less going to be at the discretion of mid-level bureaucrats at the NHTSA, just saying.
“If I can’t shoot rabbits,then I can’t shoot fascist”
“With age, comes Wisdom, but only if you are paying Attention, son” my ‘Old Man’
RS Help files (h/t JLenardDetroit) Grassroots in Michigan
Moes Strategy
I think I heard that they might get 250,000 cars
izoneguy Thursday, July 30th at 9:51AM EDT (link)I think I heard that they might get 250,000 cars as trade in for the “Cash for Clunkers”. This is what happens when you roll at an ill-conceived program to “help” people. Actually Obama thought it would help his GM & Chrysler brands flagging sales.
You know in this program they pour a silicate into the engine and then run it until it seizes up. Now that silicate gets buried in a landfill because they crush the cars. I wonder why the eco-nazis did not get this program stopped?
Now imagine a National Health Care system 100 times as screwed up as this tiny program????
“When the government fears the people, there is liberty. When the people fear the government, there is tyranny.”
Thomas Jefferson
It orginally was a good idea
Richard Mullins Thursday, July 30th at 10:39AM EDT (link)here in Texas but O is trying to twist it to make it’s own. That a funny way of trying to get more votes.
For more on my views, go my wordpress site:
http://rpmullins.wordpress.com
For more on Happy jet airlines, go here:
http://happyjetairlines.wordpress.com
For a good dose of satire go here:
http://thesquash.wordpress.com
For more of I like to do a lot:
http://www.flickr.com/photos/42008626@N03
It just keeps getting better
abbynormal Thursday, July 30th at 9:55AM EDT (link)This administration is its own worst enemy.
“Therefore, we must control men in order to force them to be free.”
Professor Pritchett
Ayn Rand’s Atlas Shrugged
Is this why Libs call themselves progressive?
johnt Thursday, July 30th at 9:59AM EDT (link)Face it, the country is in the hands of crazies.
If government jobs or raises were on the line, if job security were a sometimes thing, perhaps there would be improvement. People have been known to respond to both rewards and fear. As it is, just show up, anything else you do is gravy.
I see a screwing in the future of a lot of car dealers. That’s what government does best. That and forgetting that the screwing took place.
“a man’s admiration for absolute government is proportinate to the contempt he feels for those around him”. Tocqueville
This is yet another vote I have to question Eric Cantor
Scope Thursday, July 30th at 10:27AM EDT (link)on. He supported and voted for this mess. Another 3-4 billion down the drain.
I heard on Beck this morning that the clunkers are being sent to New Mexico, being cut into fist sized pieces, and shipped to CHINA.
This is yet another vote I have to question Eric Cantor
Scope Thursday, July 30th at 10:27AM EDT (link)on. He supported and voted for this mess. Another 3-4 billion down the drain.
I heard on Beck this morning that the clunkers are being sent to New Mexico, being cut into fist sized pieces, and shipped to CHINA.
Maybe it's just car dealer SOP but
popdaddy Thursday, July 30th at 12:22PM EDT (link)the ads in the Austin area hype the $4500 trade-in from the Federal Government while promoting Jeep Cherokee, pick ups and suv’s. Maybe it’s just Texas where few are going to buy an Obamacar.
$4500 is an increse from the original $3500
Richard Mullins Thursday, July 30th at 11:32PM EDT (link)That’s the way it worked here in Texas and it only had it working in certain counties(I know Bexar wasn’t one of them). It’s morphed into a buy American(Bah, union) car.
For more on my views, go my wordpress site:
http://rpmullins.wordpress.com
For more on Happy jet airlines, go here:
http://happyjetairlines.wordpress.com
For a good dose of satire go here:
http://thesquash.wordpress.com
For more of I like to do a lot:
http://www.flickr.com/photos/42008626@N03
Cash for clunkers
ZZMike Thursday, July 30th at 12:31PM EDT (link)Today it’s “trade in your old car for a nice new one”.
Tomorrow it’l be “turn in your old car. peroid”. Easy to do - just stop registering pre-1990 cars or those that don’t pass the ever-tightening smog checks.
good point
Lisa in Maryland Thursday, July 30th at 11:06PM EDT (link)i think that is what the end game is. They don’t really care about the environment, its about control of the masses. Cash for clunkers –what a crock–koolaid lollipops for suckers is what it is.
Anti Tax and Spend Loud Mouth Lost in Liberal Land
I've suspected that for a while now
tanstaafl1019 Friday, July 31st at 4:47PM EDT (link)It starts with the $4,500, which of course really only helps people who were going to buy a new car anyway. My 12-year-old Explorer, which I planned to drive until it falls apart around me, is paid for–and I have no plans to go into the kind of debt it would take to buy a new car, $4,500 or no.
So then people like me will be offered better incentives. When we don’t take those, they’ll institute emissions testing. You’ll either have to bring your car up to standards or junk it.
And then, for the people who still don’t give up their beaters, a government repo man will come and take it, leaving in its place a tin can “Smart Car.”
The two highest achievements of the human mind are the twin concepts of “loyalty” and “duty.” Whenever these twin concepts fall into disrepute—get out of there fast! You may possibly save yourself, but it is too late to save that society. It is doomed.
Be wary of strong drink. It can make you shoot at tax collectors–and miss.
I think you are on to something
Lisa in Maryland Thursday, August 6th at 5:35AM EDT (link)I think this goofy congress and the President would think they were totally in their rights to do that. Us stupid peasants need to be put in our place according to them. I hope you get to keep your truck.
Anti Tax and Spend Loud Mouth Lost in Liberal Land
Clunkers
snowshooze Sunday, August 9th at 3:27PM EDT (link)What a mess.
The imported cars are doing great!
The guys that could afford new anyhow are doing great!
My old ‘93 Ford just died, but I can’t afford new…so no Clunker $ for me, and think of my Neighbors who are still in ’70s rigs…what will the program do for them? It isn’t that they don’t want a newer vehicle, they just know they cannot afford one.
And think of the US Auto Worker….Hyundai is supposed to be a big winner…how about Detroit??
This program helps out everyone who didn’t need any help.
But our people, and the lower middle class on down…
Awwww…who cares about them anyhow…
Don’t you think a Domestic Purchase should have been mandatory?
And if it would have extended to used car purchases, possibly we could really have come out with something. Get some of those REAL Clunkers off the road…Help the guy with kids upgrade into the ’80s
It is just another fiasco. The whole program is a Publicity Stunt, I severely hope it blows up.
Alaska Mark
I'd Love To See What Cars Americans Actually End Up Buying
DavidSage Thursday, July 30th at 12:58PM EDT (link)The main point of this legislation was to prop up Obama’s new car companies, and give a sop to the struggling UAW. If the Democrats thought they could get away with it, they would have made the program exclusionary to car companies that only used UAW labor. It had nothing to do with environmental concerns.
I’d love to see the data when this program is over, and see what cars Americans bought for their trade ins. I’m betting Americans passed over the Obama Motor companies (Chrysler and GM) and instead bought brands like Toyota, Honda, and Nissan etc.
GM/Chrysler NO WAY!
Jacquie Thursday, July 30th at 5:37PM EDT (link)I bought a Nissan, and the Nissan Dealer said they had over 50 people taking advantage of the Cash for Clunkers program.
In the past I had always bought Chryslers, no more!
My next car
JustLeaveMeAlone Thursday, July 30th at 11:44PM EDT (link)(as soon as I can afford one) will be a USA-made, non-UAW made vehicle. Toyota or Nissan, probably.
And I’ll pay cash to keep the banks from profiting from me, as well.
“To compel a man to subsidize with his taxes the propagation of ideas which he disbelieves and abhors is sinful and tyrannical.” Thomas Jefferson
I actually took advantage of this
mangrilla Thursday, July 30th at 1:40PM EDT (link)on Saturday, and my dealer seemed pretty pleased about the whole deal. They seemed to be satisfied with how everything was working out, aside from the additional paperwork. I’d say six cars were sold in the few hours I was on the lot, and for a small, rural dealership that ain’t bad.
And in my case, at least, the bill worked as intended. I turned in a GMC that got around 16 mpg and got a Ford with about double that and saved a boatload of money. I’m happy, my dealer’s happy, so for now I’ll reserve any negative judgment on the bill. When we start hearing of people who followed the rules (which seemed fairly straightforward) not being reimbursed, then the fire and brimstone will come.
Until then, gotta love that new car smell…
I claimed that the Bush administration had encouraged things like this:
- but I refused to give examples, when pressed.
I'm happy that my tax dollars bought you a nice car. Not! nt
Vegas_Rick Thursday, July 30th at 6:04PM EDT (link)“Nothing in this world can take the place of persistence. Talent will not; nothing is more common than unsuccessful people with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan ‘press on’ has solved and always will solve the problems of the human race.” Calvin Coolidge.
5...nt
JadedByPolitics Thursday, July 30th at 10:41PM EDT (link)Whoever has his enemy at his mercy &
does not destroy him is his own enemy
Forgive me if I do not share your joy
JustLeaveMeAlone Thursday, July 30th at 11:41PM EDT (link)I could use a new car myself right now, but first the IRS is “asking” for the next $20K I make, no doubt to help pay for yours. You’re welcome.
What’s wrong with the car I have? Nothing that a $2,500 catalytic converter job won’t fix, so it can pass TX emissions inspection and get registration renewed. Until then, it sits. No bailouts here.
“To compel a man to subsidize with his taxes the propagation of ideas which he disbelieves and abhors is sinful and tyrannical.” Thomas Jefferson
JLMA
mom2oneson Friday, July 31st at 12:02AM EDT (link)That is awful. I hope you can get it inspected.
The bright spot is
JustLeaveMeAlone Friday, July 31st at 1:07PM EDT (link)that maybe it qualifies as a clunker now
Or a really big paperweight!
(Thanks, Mom — it’ll work out once I pay off the federales. They get their cut off the top, always!)
Texas has really strict emissions requirements, and I happen to own a car that’s extremely expensive to repair — and one known for catalytic converter issues. Had I known then what I know now….. oh well, live and learn!
“To compel a man to subsidize with his taxes the propagation of ideas which he disbelieves and abhors is sinful and tyrannical.” Thomas Jefferson
enjoy my tax dollars
Lisa in Maryland Thursday, August 6th at 5:40AM EDT (link)I guess I can’t blame you for taking advantage, but since I got laid off 3 years ago from my 90k/year job and have been working temp work for 10-12 per hour and my husband works 2 jobs so we can keep groceries on the table–forgive me if I don’t jump for joy. That was tax dollars that I could have used. Enjoy your new car smell.
Anti Tax and Spend Loud Mouth Lost in Liberal Land
Also, GM and Chrysler are giving $4500 on top of
smitty Thursday, July 30th at 2:13PM EDT (link)Also, GM and Chrysler are giving $4500 on top of the Cash for clunkers. There’s the govt subsidy of the brands we as taxpayers own. cute.
Ha, I just read about a guy in MN
Common_Cents Thursday, July 30th at 5:57PM EDT (link)who went into a dealership w/ checkbook in hand to buy a newer efficient hybrid vehicle and he couldn’t get it done. No wonder.
“Never interrupt your enemy when he’s making a mistake.” Napoleon - Well, unless he is ruining your country! Common Cents
A cult of personality arises when a country’s leader uses mass media to create a heroic public image, often through unquestioning flattery and praise.[1] Cults of personality are often found in dictatorships.
Oh, and negotiate your deal for cash first. No trade in. No clunker.
Common_Cents Thursday, July 30th at 5:59PM EDT (link)Then tell them you have a clunker.
Otherwise they’ll just play w/ your $4500 on the price just like any other trade-in.
I also read about solar panels prices going up because of higher government subsidies. Just like the rapid increase of college tuition rose with all the cheap/free/available money to finance it.
“Never interrupt your enemy when he’s making a mistake.” Napoleon - Well, unless he is ruining your country! Common Cents
A cult of personality arises when a country’s leader uses mass media to create a heroic public image, often through unquestioning flattery and praise.[1] Cults of personality are often found in dictatorships.
5 Clunker
mom2oneson Friday, July 31st at 7:49AM EDT (link)5 on both points.
oh :(
mom2oneson Friday, July 31st at 7:50AM EDT (link)5 Common, sorry!!! Where is my dr pepper
Car dealers should consider themselves fortunate
SoFiMil Thursday, July 30th at 7:07PM EDT (link)It could be worse. There could be a law *requiring* dealers to accept clunkers even if there is no government money to reimburse them.
http://www.suvstrategery.blogspot.com
Over
red4ever Thursday, July 30th at 7:22PM EDT (link)WTOP just announced breaking news that the program is being suspended. What happens to all those dealers who took the cars in this program? Just another way to drive politically suspect dealers out of business.
The hottest places in hell are reserved for those who, in times of great moral crisis, maintain their neutrality.
Dante
NBC Nightly News just had a glowing story on this Government program
SoFiMil Thursday, July 30th at 7:52PM EDT (link)I’m not sure if the MSM are just disregarding the facts or are completely ignorant of them.
http://www.suvstrategery.blogspot.com
Here's the info on the suspension
kdoc Thursday, July 30th at 8:21PM EDT (link)http://www.breitbart.com/article.php?id=D99P2U9G1&show_article=1
I think Barry was PO'ed that
izoneguy Thursday, July 30th at 10:03PM EDT (link)I think Barry was PO’ed that everyone was not flocking to GM & Chrysler. LOL -
Don’t trust the government to ever hold up their end of the bargain.
“When the government fears the people, there is liberty. When the people fear the government, there is tyranny.”
Thomas Jefferson
Republicans should pick this up and run with it...
JadedByPolitics Thursday, July 30th at 10:37PM EDT (link)If the idiots in Congress CANNOT run this little itty bitty 1 billion dollar program how in the heck do they think they can run Healthcare which will be 1 trillion dollars. I mean will healthcare reform RUN OUT OF MONEY? and when it does will the government just SHUT IT DOWN!!!
So many commercials running through my mind on this FAILURE again of another government run program!
Whoever has his enemy at his mercy &
does not destroy him is his own enemy
5! nt
Vegas_Rick Thursday, July 30th at 11:55PM EDT (link)“Nothing in this world can take the place of persistence. Talent will not; nothing is more common than unsuccessful people with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan ‘press on’ has solved and always will solve the problems of the human race.” Calvin Coolidge.
AP sources: Govt to suspend 'cash for clunkers'
djemi Thursday, July 30th at 11:33PM EDT (link)http://www.breitbart.com/article.php?id=D99P2U9G1&show_article=1
Now, it really is a very funny joke, instead of just a joke.
“If I can’t shoot rabbits,then I can’t shoot fascist”
“With age, comes Wisdom, but only if you are paying Attention, son” my ‘Old Man’
RS Help files (h/t JLenardDetroit) Grassroots in Michigan
Moes Strategy
The government giveth, the government taketh away.
TNJim Friday, July 31st at 1:43AM EDT (link)Always with much more taketh…
“No. You can’t” -Moe Lane
This is such a shame
Mario Friday, July 31st at 7:45AM EDT (link)I came up with the idea for this program last year as a way to avoid auto bailouts and as a more effective way of improving overall fleet fuel efficiency without doing something stupid like raising fuel efficiency standards. Naturally, the government only puts it in place after doing both of the above first, and then mismanages the program on top of it. I still stand by the idea, even if the Democrats are determined to prove that they can’t do anything right.
So we have YOU to thank for this program?
janis Friday, July 31st at 2:03PM EDT (link)Did you come up with the Porkulus bill, too? Or cap and trade?
Because we need to have a serious chat before you strike again.
Cash for clunkers
ZZMike Friday, July 31st at 12:06PM EDT (link)They ran that program so well, we can hardly wait for them to start runnng the country’s health care system.
Democrats back to basics, when something is broke throw money at it...
DONTREADONME Friday, July 31st at 1:48PM EDT (link)that is exactly what they just did
http://www.foxnews.com/politics/2009/07/31/democrats-house-plans-pass-billion-boost-cash-clunkers-program/
“The UN is right? you can’t be any more “un”; Than you are right now, the UN is undone, Another mushroom cloud, another smoking gun, The threat is real, the Locust King has come, Don’t tell me the truth; I don’t like what they’ve done, Just give me ammo for the United Abominations”-Megadeth
We need to teach them "ITS NOT THEIR MONEY!!"
nessa Friday, July 31st at 1:55PM EDT (link)nt
“If you love wealth more than liberty, the tranquility of servitude better than the animating contest of freedom, depart from us in peace. We ask not your counsel nor your arms. Crouch down and lick the hand that feeds you. May your chains rest lightly upon you and may posterity forget that you were our countrymen.”—Samuel Adams
Contributor to The Minority Report
Another $2 billion down the toilet
izoneguy Friday, July 31st at 1:57PM EDT (link)So $3 Billion for this brilliant government run debockle. That is $10 in taxes from every citizen in America. This is the great dis-connect in American society. That $4500 credit is paid for by 450 people giving over $10 each to the government. Now imagine what happens when $1.5 TRILLION is not enough for National Health Care?
Instead of $10 it will be $10,000 and then $100,000 from every citizen.
“When the government fears the people, there is liberty. When the people fear the government, there is tyranny.”
Thomas Jefferson
Cash for Clunkers: Victims of Their Own Success?
izoneguy Friday, July 31st at 3:07PM EDT (link)Cash for Clunkers: Victims of Their Own Success?
http://blog.heritage.org/2009/07/31/cash-for-clunkers-victims-of-their-own-success/
There’s a distinct difference between a successful government program and a good government program. In effect, cash for clunkers is a classic lesson in Economics 101: What Not to Do. It’s sadly reminiscent of Frederic Bastiat’s broken window fallacy, except that instead of breaking windows to “stimulate the economy,” we’re destroying perfectly good cars. Meanwhile, we’re asking consumers to purchase cars they might not be able to afford and incur more debt. While the program is ‘working’ in the sense that people are buying new cars, not only has the government had trouble dispersing the money, the program is full of unintended consequences, including dubious environmental benefits.
“When the government fears the people, there is liberty. When the people fear the government, there is tyranny.”
Thomas Jefferson
Traded in my Suburban
williemcbride Friday, July 31st at 5:03PM EDT (link)I traded in my Suburban last Friday. When I told my mechanic what I did, I thought he would be heartbroken since all the work he did on it probably put his kids thru college, but he actually sounded relieved.
Anyhow - regarding some of the horror stories, I think alot of it is confusion on part of the dealers and the sellers. I talked to alot of dealers when I was looking for a new vehicle - many of them were really not up to speed on the program. One of the reasons I chose the dealer I went with was he was following the program very closely.
When I went to sign all my paperwork I already had copies of my insurance policy and vehicle registration to prove coverage for the year. From talking to my dealer the past couple days, he said that many people have to scramble to get that documentation together.