Sorry I'm late responding to this - had a new knee installed and haven't
been computer friendly for a while. Knee is healing nicely BTW.
re the Cash for Clunkers (CFC).
There's a few problems no one has mentioned -
These are from the Car & Driver website
"Five Reasons "Cash for Clunkers" is a Joke - Car News
Why Cash for Clunkers is more a political maneuver than substantive help for
the U.S. auto industry-or the environment.
BY STEVE SILER
June 2009
With news that Congress has passed its ballyhooed $1 billion "Cash for
Clunkers" bill, we feel compelled to voice our skepticism about the program.
Here's the bill in a nutshell: Buyers of new vehicles between July 1 and
November 1 will be given a voucher for $3500 if they forfeit a post-1984 car
or truck that has been registered for at least one year and has a combined
fuel economy rating at least 4 mpg lower than their new vehicle. The voucher
grows to $4500 if the increase in fuel economy is 10 mpg or higher. The old
car or truck is then crushed and recycled.
Here are five reasons we don't think this program is worth the time it took
to draft it, let alone a billion dollars:
1) The voucher replaces the trade-in deal you might otherwise get from the
dealership; it's not in addition to the car's private sale or trade-in
value. In other words, if you're trading in a car that's worth $3000, your
net gain is only $500. Although if your car is worth $100, CFC couldn't come
at a better time.
2) We're not sure how many folks driving cars worth $3500 or less are in the
market for a new car in the first place. Sure, there's the occasional
fresh-out-of-college new-hire (we're not sure who's hiring right now, but we'll
play make-believe) that might still be ready to move from a Dodge Omni to a
shiny new Honda Insight, but people driving cheap old beaters are probably
doing so because they can't afford a new car. And $3500 doesn't go far when
the average transaction price of new cars hovers around $24K. The vouchers
don't apply toward the purchase of used cars, for which the majority of old
beaters are traded in.
3) People driving large, gas-gulping old cars and trucks often do so because
they need the utility those vehicles provide. Old station wagons, for
example, have few modern counterparts that are as versatile while achieving
better fuel economy. Ditto pickups, which have gotten bigger and more
capable but not much more fuel-efficient. And if the government thinks that
someone is going to step out of a 1994 Dodge Ram into a Honda Fit, they need
to get out of D.C. a little more often.
4) Naturally, we have some reservations about any bill designed to
facilitate wiping out-we're sorry, recycling-any automotive species. And let's
face it, while there are a lot of bona fide clunkers out there, we're afraid
that a bunch of future classics will get caught in this roundup. We propose,
then, that a certified auto enthusiast (paid, of course) be placed at all
certified CFC dealerships to screen the cars that are brought in, returning
the cool cars-including anything with T-tops-to the streets.
5) Besides cleansing the U.S. of gas-guzzling pigs, the other supposed
benefit of the CFC program is to provide a short-term boost to the starving
auto business. However, we hope these legislators don't expect it to
meaningfully help the domestic automakers. Many of the automobiles with
fuel-economy ratings high enough to qualify for the vouchers come from Japan
and Korea.
On the bright side, the cost to taxpayers will be minimal when no one
actually participates."
Hold on, it's gonna be a bumpy ride. Another billion in spending.....
still only 1/1000th of a trillion....
LarryT
91 300D (Clunker? at 30mpg's?) ;-/
"How come the proposed
'univ health care'
excludes congress?"
----- Original Message -----
From: "Rich Thomas" <richthomas79td...@constructivity.net>
To: "Mercedes Discussion List" <mercedes@okiebenz.com>
Sent: Wednesday, June 10, 2009 1:09 PM
Subject: [MBZ] Cash for clunkers
Apparently our government is now going to be giving out coupons if you
trade in your old "clunker" or "guzzler" on a new vehicle that gets better
fuel economy. Up to $4500. Trade-ins must go to the crusher.
So, looks like buying that clapped out old Benz for a few hundred bucks
could get you a good start on a new one.
Is the list mom now a coupon millionaire?
--R
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