Thus, if you are in the market for a new car with great fuel efficiency and have an older model to trade-in with a value under $3500 or $4500, then Cash for Clunkers is the right program for you.
Jeez. Here we were thinking that the auto companies would come out with good numbers today, but that they’d need a big asterisk due to Cash-for-Clunkers.
Is Cash for Clunkers Our Economic Destiny? - Rick …
The more important news this morning is the personal income and outlays. Personal incomes were flat for the month and fell 2.4% year over year. Consumer spending was up 0.2% for the month and 1.1% year over year. It’s nice to see that people are making less and spending more. All joking aside, the boost in spending was due almost entirely to cash for clunkers which we all know is about the most fiscally irresponsible program this government has ever put together. As I mentioned a few weeks ago, this program has the potential to be highly destructive. Taking out a loan from China to finance a program that encourages consumers to take out a loan to purchase a depreciating asset they likely don’t need….The effect on retail sales should be large, but the government just wants to see the near-term boost in GDP.
What can a technologist do about climate change
Cash for clunkers requires that trade-ins be scrapped, whether they are fully depreciated or not. How is destroying something good for the nation?
People say “this is a Manhattan Project, this an Apollo Project”
The wildly popular "Cash for Clunkers" program saw motor vehicle sales surge 2.8 percent, but broad declines in other categories pulled overall sales lower, paced by a 2.1 percent decline in sales at home building material and garden equipment stores.
Sorry, those are science projects
Mixed bag of data this morning depending on how you want to interpret things. Retail sales were mixed with discounters performing well and high end retailers performing poorly. The U.S. consumer continues to keep spending under wraps and is very price conscious when they do buy goods and other items. This morning’s retail sales data was another sign that the cash for clunkers is going to detract from sales for months to come. This is by far the most worrisome component of anyone’s v-shaped recovery thesis. The U.S. consumer is simply not coming back as fast as many would like.
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The rebate offered by the Cash for Clunkers program is either $3500 or $4500 depending on the fuel efficiency of the new model. If the new vehicle being purchased has a fuel efficiency of 5 MPG more than the trade-in vehicle, the larger rebate can be obtained. In addition, by electing to use the Cash for Clunkers program, the buyer is no longer in a position to negotiate a trade-in value for their older vehicle and has to accept the fixed rebate amount of either $3500 or $4500.
Dave Hogg's Blog | This One's Personal
The Cash for Clunkers program, also known as CARS, was originally only funded for $1 billion, but after the unexpected consumer response to the program, $2 billion in additional funds was passed by Congress. It is expected that these funds will be essentially depleted by the end of the program. Auto manufacturers and consumers alike have seen the benefits of this program, with Ford Motor Company announcing plans to step up production in response to extremely brisk sales of fuel-efficient cars in the first two weeks of August.