This program didn’t last for a week. It has been stopped just as people were learning about it. The program was set up under President Obama’s direction to give the faltering new car industry an economic boost and to get those gas guzzlers off our roads.
It is almost comical. Just as people are learning about it, the program is canceled. We are given the consolation prize of Washington assuring us they are looking into funding more money for this to continue. Maybe they can have a weekend sale next time, or a happy hour special.
This program was slated to go until November , which is three months away. They did state that if the one billion was gone sooner the program would end. But just a few days? Did not any one do an estimate on what the figures might have looked like?
What happen? Although all the money is not gone, what is left is tied up in paper work for new car buyers who have applied through the dealerships. It is estimated that for every car dealership in the nation that is participating in this program there are 13 applications waiting for approval. Once those approvals go through, the money will be gone. So in reality, the money is gone. It has not changed hands yet, but it is spoken for.
This Cash for Clunkers program had set one billion dollars aside to offer the new car buying public a great trade in deal. The dealerships needed apply to offer this to their customers and over 80 % of them did.
Cars had to be with in the guidelines which were very specific. The car needed to have been manufactured after 1983 and in driving condition. It also had to have been on the road with one consecutive owner for one year prior to trading it in. This was to be documented by proof from the insurance company that it was actually insured for the year in question.
This program offered a two tier rebate, one for $ 4,500 and one for $ 3,500. The amount you would qualify for would have to do with the amount of miles per gallon you were saving by buying a new car. For a new car to qualify it would have to get at least 22 miles per gallon. and get at least 4 miles per gallon more than your old car. For mini vans, pick up trucks, and SUV ‘s the minimum mileage is at least 18 miles per gallon. and get 2 miles per gallon more than your old vehicle.
It held interest for many new car buyers and certainly for the dealerships. Did anyone do the math before doing offering this program? It originally was slated to go for four more months? Is this the kind of help we can expect from this administration? It sounds like someone does not know what they are doing.