By Kristina Wong

Aug 6, 2009 6:01pm

‘Clunkers’ Program Hits a Speed Bump

ABC News' Jonathan Karl reports: The effort to inject another two billion dollars into Cash for Clunkers has hit a potential road block in the Senate that could kill the bill.

Republiicans are throwing their support behind an amendment offered by Tom Harkin, D-Iowa, that would limit clunker rebates to individuals with annual incomes of 50 K or less. With Republican support the amendment stands a good chance of passing unless the majority of Democrats, who mostly favor the amendment, vote against it.

Why is that a problem?

If any amendment passes it means the House has to take up the bill again and the House, of course, has already adjourned for its August recess.

The Democratic leadership is now scrambling to get rank- and -fille Democratic senators to vote against an amendment almost all of them favor. It would be a very tough vote.

"It does seem to be out of character for Democrats to support allowing millionaires access to borrowed money to buy cars," said Don Stewart,  spokesnan for Senate Republican leader Mitch McConnell, R-Ky.

UPDATE:

Clunkers withstood the Harkin amendment without slowing down. Senators voted to table the Harkin amendment 65-32.

The "speed bump" turned into a largely party line vote. All Democrats voted in favor of tabling (essentially against Harkin's amendment. Nearly all Republicans voted against tabling (essentially for). Sens. Susan Collins, R-ME, and Olympia Snowe, R-ME, along with several other Republicans, voted with Democrats.

The bill is expected to come to a vote tonight.

UPDATE:

Senators voted 60 to 37 at 8:12 p.m. to give the Cash for Clunkers program an emergency $2 billion refill.

User Comments

Millionaires don’t have clunkers-are you kidding me!!!

Posted by: rita sipe | August 6, 2009, 6:11 pm 6:11 pm

It’s a bad idea, more sub prime temptation upon those who can least afford a car payment.
Clunkers was a stupid idea in the first place.

Posted by: wakeupmaggy | August 6, 2009, 6:12 pm 6:12 pm

These dems don’t have a clue!

Posted by: Kim | August 6, 2009, 6:13 pm 6:13 pm

wakeupmaggy – GREAT POINT – Why don’t we put Barney Frank in charge so he can tell us everything is pefectly fine – the BAM – GOVCO car loan bail out! Great Point!!!!!!!!!!!

Posted by: ken | August 6, 2009, 6:14 pm 6:14 pm

The only qualification is that the car being traded in gets less MPG than the car being purchased. i.e. trade in your 07 Suburan XL for a 2010 Lexus SUV Hybrid. Get trade-in plus an additional $4,500 from Uncle Sam!

Posted by: The Explainer | August 6, 2009, 6:15 pm 6:15 pm

youve got to be kidding me….soooo because i make 59k a yr (before the taxman cometh ofcourse) i would not be able to access this program…glad i dont need to anyway, as my 98 sube gets 24combined mpg according to the gov’t bigwigs. still, this looks ominously like someone is trying to kill this program before it gets extended.

Posted by: Ted | August 6, 2009, 6:16 pm 6:16 pm

in 6 months we’ll have repos for cash, then everyone making over 50G can bail everyone else out again, THE NEW AMERICAN WAY!!!!!!!

Posted by: mike | August 6, 2009, 6:16 pm 6:16 pm

I’m for anything that will kill “Cash for Clunkers” what good is it doing anyone? It’s not helping American industry as much as the import car-makers. I have nothing against imports, I’m just saying. It makes no sense. Anyway, I don’t think CARS was for the economy anyway, it’s an environmental thing more than an economy fix. Heck maybe I missed something and that was the idea all along.

Posted by: Fred | August 6, 2009, 6:16 pm 6:16 pm

What a circus. So why is the Government bribing people to turn in gas guzzlers? To get rid of low mileage cars? To induce new car sales? Does achievement of either goal depend on how “rich” the car buyer is?

Posted by: Joseph Lochert | August 6, 2009, 6:17 pm 6:17 pm

Rita,
Actually, the typical millionaire in the US does drive an older used car. Most of the people you see on the road with new BMWs, Mercedes, and Audis are not affluent; they just want to look like they are. I’m not saying all of the wealthy in this country drive clunkers, but there are a fair number who do. Just look at Sam Walton driving his old pickup truck until the day he died.

Posted by: Brian | August 6, 2009, 6:17 pm 6:17 pm

Well now, wait till the anointed one here’s about that. Get the promters ready boys cause the idiot can not talk unless someone writes down for him.

Posted by: Al | August 6, 2009, 6:17 pm 6:17 pm

No seriously, millionaires don’t have clunkers so this is a moot point. To qualify for this program you have to have owned and insured the vehicle for a year-how many people do you know with high incomes that drive cars with a trade-in value less than $4500? They don’t and therefore wouldn’t use this program anyway.

Posted by: Rita | August 6, 2009, 6:17 pm 6:17 pm

Rita, millionaires may not have clunkers, but who’s to say what a clunker is? I’ve seen several cars that have qualified that are better than what many folks own. The bigger issue here is how many people who earn less than $50k can afford to take on a new loan? Are we just setting ourselves up for another round of failed loans needing more bailing out?

Posted by: jojo | August 6, 2009, 6:17 pm 6:17 pm

I find it UNBELIEVEABLE that we ever had this program to begin with…Where is Al Gore on this program that damages the environment??? I was shocked to learn that the Cash for Clunkers program requires that every car BE COMPLETELY CRUSHED and no parts can be removed from it!! Useable Tires become trash…can’t save a seat or a bumper… must be crushed !! This is pure craziness and certainly not environmentally sound…next, we are going to see a bill to remove the toxic waste this program causes !

Posted by: Cynthia | August 6, 2009, 6:18 pm 6:18 pm

I don’t even know why we are trying to inject another $2,000,000,000 dollars into this program. It’s only hurting local car shops and used dealers. Is there really any net benefit to the environment? If there is, it’s only marginally recognizable. It’s just one of those liberal pet projects.
We’re just further subsidizing the auto industry. It’s not really helping the Big Three. No one wants to buy an American car. They’ll never be able to sell cars on their own. It will be a miracle if we ever get our tax dollars back. Vote out Obama and his foot soldiers! We will take back our country in 2010 and 2012!

Posted by: Atticus Antonio | August 6, 2009, 6:18 pm 6:18 pm

For each clunker, we borrow $4000 from China (that our kid will have to repay) to buy a car from Japan (thereby sending the $4000 over there). Does this make any sense? Why are we stimulating the Japanese economy with our taxes?

Posted by: Steve | August 6, 2009, 6:18 pm 6:18 pm

Millionaires don’t have clunkers-are you kidding me!!!
Posted by: rita sipe | Aug 6, 2009 6:11:54 PM
++++++++++++++++++++++++++++++++++
Are you kidding me? Millionaires are the ones driving clunkers, How do you think they became Millionares, by buying a “new” car every 5 years?

Posted by: Mike Jones | August 6, 2009, 6:18 pm 6:18 pm

What of the waste from destroying the clunkers? The videos of dealerships burning out the engines by removing all the oil and fluids and destroying them- how are we benefiting the environment by doing that?
Sure, they’re clunkers but do we have to destroy them in this fashion, throwing off even more toxins into the air? Are we recycling any of these parts?

Posted by: JBS | August 6, 2009, 6:19 pm 6:19 pm

Is this bill about helping the environment or helping the poor? Isn’t it about stimulating the economy too? If someone has a car that’s worth less than $3500 (or $4500 in some cases), wouldn’t you rather have them buy a new one, help the economy, and be done with it? Besides, all a limit of $50,000 is going to do is make the program less effective. I make more than $50,000 a year and am definitely not rich. I don’t own a home, and I work hundreds of hours of overtime each year. Why should I be excluded from this handout?

Posted by: jason | August 6, 2009, 6:19 pm 6:19 pm

2 years from now, We will have the Goverment bailing out the Car buyers, after all the Automotive companies are taking advantage of them.

Posted by: Mike Jones | August 6, 2009, 6:20 pm 6:20 pm

FIRST WE HAVE TO MAKE THEIR HOUSE PAYMENTS NOW WE ARE GOING TO HAVE TO MAKE THEIR CAR PAYMENTS. just 2 words KILL IT

Posted by: jake | August 6, 2009, 6:20 pm 6:20 pm

Dear Idiots in Congress,
If money is flying out the door too quickly (It is), reduce the payout per automobile.

Posted by: Bill | August 6, 2009, 6:21 pm 6:21 pm

Who ever wrote this article needs to invest in spell check/grammar check.

Posted by: Rob | August 6, 2009, 6:21 pm 6:21 pm

Maybe there a are a few out there driving clunkers, but I live in an affluent neighborhood and don’t know of anyone who would qualify. Most drive cars that either get more than 18 mpg or their car is worth more than $4500. If they are driving an old beater, than they want to and wouldn’t want to use the CARS program to buy a new car anyway.

Posted by: Rita | August 6, 2009, 6:22 pm 6:22 pm

The government does “give” anyone anything.
$4500 is money borrowed from China.
You and I are going to have to pay China back with interest for every “free” giveaway scheme these out-of-control Democrats come up with.
Do you have an extra $4500 sitting around to buy your neighbor a car? This is not the American way.
Why are we trading perfect good working cars and destroying them in exchange for new cars and 12-20k of new debt?
How is this going to benefit the economy?
Vote these radical socialists out of office.

Posted by: Active Principle | August 6, 2009, 6:23 pm 6:23 pm

I just saw on the news that because of the cutbacks and GM, etc. if the 2 billion went in now, people wouldn’t have a choice because there aren’t many American cars out there available. All the money will go to Toyota and Honda, and yes, some are built here too. My 13 year-old Chevy isn’t eligible because THEY say it still gets 24 mph, what it got when it was new. No way.

Posted by: Hoosier | August 6, 2009, 6:23 pm 6:23 pm

Isn’t the end goal to produce more gas efficient vehicles, not simply to waste taxpayers’ money?

Posted by: Scott | August 6, 2009, 6:24 pm 6:24 pm

I can’t wait until these clowns run my healthcare!

Posted by: Tom | August 6, 2009, 6:24 pm 6:24 pm

Mike,
That’s my point-if they drive a clunker, they will keep it cause they want to.

Posted by: Rita | August 6, 2009, 6:25 pm 6:25 pm

I guess this means I will be unable to trade in my 1987 Porsche 911 Turbo for a new Ford Focus

Posted by: Robert Ferraro | August 6, 2009, 6:25 pm 6:25 pm

If the rich can buy cars then why haven’t they?? The harkin admendment is stupid. It would KILL sales!!! The only way ANYONE will buy a new car is if they have money!!! The poor buy used – not new, and it does not make ANY sense to cap it…

Posted by: simpsonic | August 6, 2009, 6:27 pm 6:27 pm

Remember when we conservatives used to joke about the government buying cars for people? It’s come to pass.
I can’t wait to see how many people default on these auto loans, and then see the Democrats blaming the car companies.
I cannot wait.

Posted by: Gary | August 6, 2009, 6:27 pm 6:27 pm

ken – It doesn’t matter the condition of the car…it’s only the difference between MPG of each car. Rich people or more well off folk DEFINITELY have a lot of low MPG cars (think SUVs, big engine luxury sedans, etc) and use this opportunity to get a huge rebate on a new car. So the late model Expedition gets traded in for a brand new sedan or small SUV and they get the rebate. Sort of bugs me but I can’t blame them. Honestly, I’m not sure if I agree w/ the amendment or not.

Posted by: mike | August 6, 2009, 6:27 pm 6:27 pm

So does this mean we have to bring our tax forms to the dealership to get our clunker deal? They have sufficiently killed the program-it was already bogged down in paperwork, this should kill it for good!

Posted by: Rita | August 6, 2009, 6:28 pm 6:28 pm

The problem here is that we are still losing jobs than making new ones, money will NOT be spent anytime soon by consumers – who are figuring out they don’t need all that the MadMen tell us we do, and when it double dips, those with new cars will find they are being repoed when they lose their jobs. It’s a neat way of keeping people off the road in the long run. I expect a banning of anything that doesn’t get a chosen MPG here soon by Uncle Sam, so that only the elites will be driving. Does Washington REALLY think we buy all the “Clunker” ideas they put forth? Maybe we should all get $4,500 for just listening to it.

Posted by: Drew | August 6, 2009, 6:28 pm 6:28 pm

Don Stewart, “spokesnan” needs a spell check. (End of article)
Pay now or pay later… if people can’t afford the cars without this program, this is no different than “easy money” in the housing bubble – pushing forward demand from tomorrow to today. My advice is use the ‘cash for clunkers’ program via the poor saps using it. Wait about 8 months after all these cars get repo’d.. then go grab a deal.

Posted by: gweedo | August 6, 2009, 6:29 pm 6:29 pm

I would love to drive some of the “clunkers” people have turned in. Many of these vehicles are worth more than $4500 rebate. The morons taking advantage of the program are really just getting screwed.
Us poor folks can’t afford new vehicles even with the 4500 rebate. We cant afford the financing either.
If you own a $4500 large vehicle (which has probably been paid off for years) and it is getting you by, why would you then turn it in to by a tiny deathtrap and make expensive payments for several years? If I have a major repair come up every few months with no car payments, I am still way ahead moneywise. And if I lose my job (very possible with our depression) I will still have my car.

Posted by: Bob | August 6, 2009, 6:29 pm 6:29 pm

A completely disgusting program. Steal from one and give it to another for luxuries no less.
Cash for clunkers: It’s our form of representation.

Posted by: K | August 6, 2009, 6:29 pm 6:29 pm

If you make 60,000 dollars you don’t get to exchange a clunker?

Posted by: Hank | August 6, 2009, 6:29 pm 6:29 pm

Ken,
Let me EDUCATE you! The bill is for ANY vehicle that meets the MILEAGE definition!!!!!!! People are getting rid of their ’07 vehicles and getting BRAND NEW ONES!
Did YOU know that HUMMERS are on the list of RECOMMENDED buys? The list is from the government. It was on the Drudge report!!!!
You are SO uninformed, it is laughable!!

Posted by: Glubber | August 6, 2009, 6:30 pm 6:30 pm

Someone wrote: “I was shocked to learn that the Cash for Clunkers program requires that every car BE COMPLETELY CRUSHED and no parts can be removed from it!! ”
I am not suprised. The CARS program could have multiple purposes: 1) bribes for votes, 2) selling new vehicles.
By preventing the pre-owned vehicle from being sold for parts, this may be perceived as helping the special interest group, the automobile manufacturers, by eliminating a source of spare parts and competition.

Posted by: Lawrence | August 6, 2009, 6:30 pm 6:30 pm

I hope they kill this bill. I am in the car business, It kills the wholesales of cars and because they takes 250,000 out of the market which creates a inflation because used cars prices will sky rocket, it kills all the mechanics that would work on the older cars , it kills use car lots because there won’t be enough cars to sell, it kills detail shops, paint shops, most of the Clunkers would have resold over and over and now it kills smog shops it already has caused unemployment at the Auto autions because sales are off 35% they laid off 1/3of employees, and it kills sales of new cars in the bad months in oct nov dec jan and beyound because they would have bought in the next 6 months! For every government action to make people feel good, it destroys people business, it hurts the little guys who aucually work for a living! More unemployment when car dealers that would worked on some these cars lay off mechanics, in oct nov dec they will lay off sales people, Service writers, staff, lot boys, detail workers the list is endless. It kill state coffers because these cars could have been sold 2-3 times which is sales tax, and most new car warranties cover everything so the loose for three years parts revenue sales tax. this list could go on for pages the destruction people lives by government interventions. Yes New cars store love it but where will the be in three months no oner comes on the lot. 500,000 more cars off the road if they pass it, and another .5% unemployment!

Posted by: John Henry | August 6, 2009, 6:31 pm 6:31 pm

Does anyone ask “,,,,,,with $3,500.00 of taxpayers’ money and increasing gas mileage by 4 miles per gallon(18-22)how long will it take recover those $$$$?” Do the math at 12M, 15M, 20M per year at any cost per gallon. Same conditions at $4,500.00 and 28 miles per gallon improvrment.

Posted by: Ben Wood | August 6, 2009, 6:31 pm 6:31 pm

I don’t think it’s a ploy by Republicans to block the bill when the amendment was offered by … TOM HARKIN.

Posted by: Don | August 6, 2009, 6:31 pm 6:31 pm

Oh geez! I don’t buy new cars until mine are about to hit the junkyard because I don’t want the excess burden of a new car payment and the cost of insurance for a new car and we make a lot more than $50,000.
I think we are going to see a lot of repos in a few months.

Posted by: ljphoto | August 6, 2009, 6:32 pm 6:32 pm

Yeah, health care reform now. Let’s let these bumbling idiots get their hands sticky with something that matters more than ditching a used car. That makes perfect sense. It’s sure to be better than the Passport fiasco, Katrina, USPS, Amtrak, and Medicare.

Posted by: JohnS | August 6, 2009, 6:32 pm 6:32 pm

There is a list of cars for trade in. You can’t just trade any car in to get the rebate, it needs to be on the list

Posted by: col_kl1nk | August 6, 2009, 6:33 pm 6:33 pm

How long till we get a Government program to pay the payments for these vehicles when the buyers can’t afford to make them.
Wait aren’t we already doing that by bailing out the banks so they can lend money borrowed from China to consumers and then adding additional money borrowed from China to bail out GM and Chrysler then use more money borrowed from China to subsidize C4C trades in to the Dealerships that take them in.
So why should money borrowed from China also make the consumers payments?

Posted by: Mike Marsch | August 6, 2009, 6:33 pm 6:33 pm

This whole deal is un-Constitutional. Boycott the 16th Amendment.

Posted by: devan | August 6, 2009, 6:33 pm 6:33 pm

$50,000 isn’t a lot of money. Thus if you make $51,000 you can’t get a “cash for clunkers”? That’s is discriminatory.

Posted by: Sally | August 6, 2009, 6:33 pm 6:33 pm

I think the only solution is to send every member of congress looking for another job.

Posted by: nceeno | August 6, 2009, 6:35 pm 6:35 pm

Funny, I thought this was an environmental program designed to increase the fuel efficiency of the American fleet.
Turns out, it’s just another wealth transfer. Watch the pigs line up at the trough.
No thanks.

Posted by: YouDude60 | August 6, 2009, 6:35 pm 6:35 pm

should those making less the $50,000 be buying a car right now. They should put a cap on how much they can spend on a car then, maybe something used off the lot.

Posted by: beth | August 6, 2009, 6:35 pm 6:35 pm

The only people who can get the deal are people with money already.
Good Point Paul…I thought of this very thing the other day.

Posted by: James | August 6, 2009, 6:35 pm 6:35 pm

I wrote the original cash for clunkers program for the Senate in 1979. In a nutshell, it was a variable and increasing tax credit that increased based on the difference in mpg of the car traded and the car purchased. The minimum was $100 for a 1 mpg difference, to $9000 for a 30 mpg difference. Foreign made cars only partially participated in the plan. There was much more, but that is the basics. The problem with this plan is there is no incentive for the purchaser to greatly increase their mileage, and no incentive for the mfg to increase theirs. With the variable credit, there is an incentive on both sides.

Posted by: Howard | August 6, 2009, 6:36 pm 6:36 pm

Hey on the upside. There sill likely be a lot of decent used repos on the market for people like me in a few months.

Posted by: ljphoto | August 6, 2009, 6:36 pm 6:36 pm

So the Republicans are balking not because it’s a socialist wealth-redistribution ploy, but because rich people might benefit from it.
Now I remember why I stopped voting Republican. They’re basically just Democrats anymore.

Posted by: Larry | August 6, 2009, 6:37 pm 6:37 pm

“The only qualification is that the car being traded in gets less MPG than the car being purchased. i.e. trade in your 07 Suburan XL for a 2010 Lexus SUV Hybrid. Get trade-in plus an additional $4,500 from Uncle Sam!”
It doesn’t work that way at all.
Your clunker has to get 18 MPG or less combined AND the new car has to better the clunkers MPG by at least 3 MPG (or is it 4 MPG?) for the $3500 credit and by 10 MPG or more for the $4500 credit.
You don’t get trade in value from the dealer PLUS the cash-for-clunker credit. You get the cash-for-clunker rebate OR you can trade in your clunker. If the trade in is worth more than $4500 then you trade in the car. It’s simple, other than the government is unable to run the program.
The new car can’t have a value of more than $45,000, so that rules out almost the entire Lexus SUV line.

Posted by: altidude | August 6, 2009, 6:37 pm 6:37 pm

Lets make a list of things government does well.
1. War
2.

Posted by: Top GO | August 6, 2009, 6:37 pm 6:37 pm

Yawn! Off to send my Congressman and Senator a love note expressing my disapproval. They are both democrats so I am sure clip art will be involved.

Posted by: Charlie | August 6, 2009, 6:38 pm 6:38 pm

In LA inner city there is a very low % of insured cars. Hard to know how these are getting accepted as clunkers unless the language of the bill prohibits anyone from the outside looking at the documents.
Second point is that according to a large wrecking yard everything other than the block and possibly the head can be recycled. This man ran a large pick your part operation and was accumulating hundreds of clunkers.

Posted by: fly4vino | August 6, 2009, 6:39 pm 6:39 pm

Ok – let me get this straight.
So far, there’s been $1,000,000,000 alloted for the “clunker” program and there have been 23,000 cars put through it. Now they’re out of out of money.
My math isn’t all that great, but as far as I can figure, this comes out to $43,000 per vehicle.
Figured another way – $1,000,000,000 divided up at $4,500 per car would mean that 222,222 cars could theoretically enter the program.
Where’s all this money going?

Posted by: JimC | August 6, 2009, 6:41 pm 6:41 pm

60,000 a year gets you no where in California. This is a stupid limitation. So all these people who don’t make money are going to buy new cars they can’t afford? Time to start a repo business.

Posted by: THIS IS BS | August 6, 2009, 6:41 pm 6:41 pm

“My friend and his wife make $ 110,000 between them and own their home outright (No mortgage!)and they just bought a new truck using the stimulus $4,500 dollar rebate!… they are very responsible and hard working people, very good with their money, but still, don’t think they should get $4,500 bucks on the taxpayer!”
Guess what? Your friends ARE the taxpayer! Look at it as they got some of the money back that they paid into the system in 2008. It’s their money, not the government’s money.

Posted by: altidude | August 6, 2009, 6:41 pm 6:41 pm

This program, which I think is a collosal waste of money paid by the taxpayers DUH, should only be targeted to those people who cannot afford to buy a car, if at all. The “compassionate” democrats can’t stand it when the error of their ways is pointed out by one of their own. The question asked this afternoon was simply this, “Should the President be able to go down and get a $4,500 rebate?” Who does that help? What I heard him state was a $50K for single and $75K family should get $8,000. That way someone that could really use the help could get 1/2 off a $16,000 car. Personally, I’d love to have that, but I was stupid and bought a new PT last year with cash money I saved. My first new car and I’m 56 years old. So, if the stupid government is going to give away your money to the company we have already bailed out, shouldn’t it at least be beneficial for those who work, need a car and can’t afford one? Now, if they would quit destroying perfectly good cars and give them to people that can’t buy one and need one, well I’d even feel better about getting soaked twice by the same scam.

Posted by: MotherRedDog | August 6, 2009, 6:42 pm 6:42 pm

And to the person saying that the dealers pay trade-in value plus the government incentive. Yes this is true, but the engines must be destroyed, which seriously impacts any trade in value.

Posted by: Captain Howdy | August 6, 2009, 6:42 pm 6:42 pm

The Dems are total idiots.. limit the program to low income people who can’t afford to buy a new car.. so they will default on the loan and we will bail them out again..

Posted by: Johan | August 6, 2009, 6:43 pm 6:43 pm

Another stupid ploy. The reason cash for clunkers was in-acted was to get anybody who can afford to buy a car to get off their wallets and buy a car to support the industry. This was never suppose to be a welfare hand out. Stupid stupid stupid.

Posted by: kevin | August 6, 2009, 6:44 pm 6:44 pm

I never thought I would say it.. Obama is wrost than GWB.. I should have voted for McCain.

Posted by: Amy | August 6, 2009, 6:45 pm 6:45 pm

Millionaires don’t have clunkers-are you kidding me!!!
Posted by: rita sipe | Aug 6, 2009 6:11:54 PM
Rita as Mike points out, I’ve been out of college 29 years and I’ve owned 3 cars in that time. That $4500 is MY tax money.

Posted by: Jim | August 6, 2009, 6:46 pm 6:46 pm

McMansions, version 2.0.
Can’t wait to see everyone with their hybrid SUVs paid for by the US taxpayers start getting repo’d.
And we’ll be told we have to bail out GMAC and the other auto financers.

Posted by: Jim | August 6, 2009, 6:48 pm 6:48 pm

Well my refrigerator is kind of clunky and I’d like it replaced. How about “Financing for Fridges”? “Dollars for Dishwashers?” “Allocations for Air conditioners”? “Monies for Microwaves”? Shall I go on? Where does this lunacy end? Do people really think the government has money to give away??? Hellooooo, anyone out there remember that it’s not their money, it’s OURS?????

Posted by: Linda | August 6, 2009, 6:48 pm 6:48 pm

This is the same government that you want to run your healthcare. Just imagine…in the middle of an operation, the govt. changes it’s mind and they just sew you up, because, well, you’re not the right race, religion, gender or whatever…BECAUSE THEY CAN’T GET THEIR ACT TOGETHER.

Posted by: RightLane1111 | August 6, 2009, 6:48 pm 6:48 pm

Democrats hate anything American, especially American cars. The Cash 4 Clunkers program gives them an excuse to shred American cars while allowing drivers to use taxpayer dollars to buy foreign replacements!

Posted by: Ron Smith | August 6, 2009, 6:49 pm 6:49 pm

“I don’t make jokes. I just watch the government and report the facts.” Will Rogers

Posted by: Stand Firm | August 6, 2009, 6:50 pm 6:50 pm

“And to the person saying that the dealers pay trade-in value plus the government incentive. Yes this is true, but the engines must be destroyed, which seriously impacts any trade in value.”
That is absolutely not true. We just bought a car through the program and I thought the same thing. The dealer set us straight.
The clunker will be scrapped so there is no incentive for the dealer to give you anything at all for the car in addition to the CARS credit because the dealer can’t sell the trade at retail or wholesale. They may TELL you they’re giving you something more for the trade but they’re just tweaking numbers to make you feel good, as car sales people tend to do.

Posted by: altidude | August 6, 2009, 6:51 pm 6:51 pm

I’m rich and I have a 93 Dodge minvan clunker. Guess why I have money….don’t waste it on new cars!

Posted by: mike | August 6, 2009, 6:51 pm 6:51 pm

The Democrats are beclowning themselves once again with this idiotic program.

Posted by: RickS | August 6, 2009, 6:52 pm 6:52 pm

Both my fiance and I earn six figures and we each have a car that would trade in for less than 4500! easily. People who work hard and save money often have older cars that have depreciated but still work just fine!

Posted by: Monique | August 6, 2009, 6:53 pm 6:53 pm

The Democrats and the Obama Adminstration are out of control. I am not a Republican but I will vote that way in the future because these clows are idiots.

Posted by: Jerry Brown | August 6, 2009, 6:55 pm 6:55 pm

Either way, this program is devastating to low-income families. Thanks to the CARS program’s requirement that all redeemed cars must be destroyed, there tens of thousands of drivable cars never will be available for purchase by a young teenage driver or a low-income family who just needs something to get them to work. Great job, Obama. I knew you had it in you to screw the Lower Class and dupe them into thanking you for it!

Posted by: Joseph | August 6, 2009, 6:55 pm 6:55 pm

So @ $50,000 you are considered “rich”?
Who cares of if those who can afford a new car get the rebate? They are the ones supplying the tax money that the government is handing out! I say, let them recoup what they can before the government gives it all away!

Posted by: Lori | August 6, 2009, 6:56 pm 6:56 pm

seriously, my husband and I both make well over $100k per year and we both drive 1998 Expeditions and have a 1995 T-100 for our son. Why? Because they are PAID FOR!!! I can’t stand this concept that if you make a lot of money you waste it on a depreciating asset like a car.

Posted by: elaine | August 6, 2009, 6:56 pm 6:56 pm

Boy am I glad I got my car clunked early!
I waited all summer to see if that program hit, and sealed the deal. I am not rich, nor poor, just a middle of the road guy supporting a family and working my tail off. Needed a new car anyway this year or next. Timing was perfect, so is my credit, strike while the iron is hot.

Posted by: clunked out | August 6, 2009, 6:56 pm 6:56 pm

Only in America would government pay $4500 for a car worth $1000. We then destroy it instead of receycling it like a normal free markey would. We borrower the money from China to buy cars from Japan and Korea. Yatsu Yamamoto and Nyguen Nyguen thank you.

Posted by: wake up | August 6, 2009, 6:57 pm 6:57 pm

I am a millionaire and I drive a 92 Subaru Legacy Wagon with 192,000 miles — bought it new. To young people: drive a clunker, maybe you can retire at 52 years of age like I did (cheap car and great mileage for 17 years, it adds up).
Of course my car doesn’t qualify for this program because it gets 29 mpg highway. So, let’s reward those who have made bad decisions, not those who bought a good vehicle to start with.
Lunacy!

Posted by: Stand Firm | August 6, 2009, 6:58 pm 6:58 pm

None of the listed cars in the “clunker” program are true clunkers.
I have a ’66 chrysler Newport with
168,000 miles, a 383 V-8 that I would
estimate gets about 12-15 mpg if that.

Posted by: Greg | August 6, 2009, 6:58 pm 6:58 pm

Obama now defines “Rich” as making over $50,000.00 per year. The Federal Poverty Level for a family of four is $22,050.00 per year. This means that ALL the people who are in between are now Middle Class and will be targeted by the Obama Administration for an increase in Taxes to pay for his Multi-Trillion Dollar deficits. Congratulations, SUCKERS!!!

Posted by: ETEE | August 6, 2009, 6:59 pm 6:59 pm

The program is good because it greases the wheels of the economy.
Dealers sell cars, so they need to replenish their stock through auto manufacturers. Manufacturing ensures current jobs stay safe and adds potential for new jobs to be created.
Consumers provide money to dealers which funds future manufacturing and r&d.
Scrap yards can sell anything on the car except the engine and parts related to the drive train. The idea is to keep these cars from getting back on the road.
Drivers who take advantage of the program save money on gas, allowing them to put more money into the economy in other ways that make their lives better.

Posted by: Keith | August 6, 2009, 7:00 pm 7:00 pm

Our elected ones are useless…..what a joke they are. We need a third party.

Posted by: richard | August 6, 2009, 7:00 pm 7:00 pm

Millionaires drive Ford F150 pickups.Hey,Ford didn’t need a bailout.

Posted by: harg | August 6, 2009, 7:01 pm 7:01 pm

What happends to the car industry when this program ends??? Can you say “HUGE SALES SLUMP”?…which will again paralyze the auto industry…Another brilliant government “I JUST WANT TO HELP YOU” moment.

Posted by: Dave | August 6, 2009, 7:01 pm 7:01 pm

Rich people drive old Bimmers, Mercedes, Chevys and Buicks. Rich people don’t have to impress politicians, simply buy them.

Posted by: punkdolphin | August 6, 2009, 7:01 pm 7:01 pm

making over $50,000 does not make one a millionaire………..government idiots

Posted by: richard | August 6, 2009, 7:02 pm 7:02 pm

Finally the Republicans are using their heads!!!! It may be too late but let’s all believe and work for it not to be so!!! I refuse to hope…hope is for suckers who sit around and wait and “hope” for the government to improve their lives….now that is a joke!!

Posted by: Shockedandappalled | August 6, 2009, 7:03 pm 7:03 pm

The Republicans have no say on this procedurally – the Dems have 60 votes, os they can pass whatever they want. This is all about stopping the clunker deal to give the Dems a black eye politically.
If they pass the amendment – the deal to keep the program alive is dead. Imagine the news – “They can’t even extend the program ’cause they want to limit who can get the cars”. Win for Republicans.
If the amendment fails – The Republicans can say “we’re trying to reign in spending & make this deal available to more Americans who DESERVE it. The Dems want their fat-cat buddies to be able to get their rebates.” Win for Republicans.
Folks in the White House must be livid. They are the new “gang who couldn’t shoot straight”.

Posted by: Chuckles | August 6, 2009, 7:03 pm 7:03 pm

Actually, millionaires DO have clunkers. Billionaires even. Take Sam Walton for instance, who would be the wealthiest man in the world if he hadn’t died. Read The Millionaire Next Door by Thomas J. Stanley and William D. Danko. That thinking behind driving a clunker as opposed to getting a new car all the time is exactly why millionaires are millionaires.
I’d say one should have to have ABOVE $50,000/year to use this program. Unless you have $1M+ of net worth, there is no reason to buy a new car. You do get $4500 in confiscated money for buying a new car– a new car that will depreciate well over $4500 in value. Mathematics calls that a net loss. Plus, since the dealer knows you’re getting that money, the dealer can charge you that much more.
It’s a great move by the government though. Buy a car company and then use tax law to increase sales. If I could control tax law, I could pretty much build up a business in anything.
If this deal could be used to buy used cars, then at least it wouldn’t be completely unconstitutional and stupid. It would only be the former.

Posted by: Ethan Garofolo | August 6, 2009, 7:03 pm 7:03 pm

So someone who makes 45k is going to be helped to buy a car costing 16k. Nice. Didn’t we already do that with the housing?

Posted by: MikeyMike | August 6, 2009, 7:05 pm 7:05 pm

Yea…Another redistribution of wealth. Taxpayers “loan” the government 2 billion of money we don’t have to pay for cars that were already paid off. Then the owners go into more debt with the banks that the taxpayers will also have to bail out.
And the nice part? Printing money leads to inflation…we all get taxed in the end. How stupid are these guys????

Posted by: mark | August 6, 2009, 7:06 pm 7:06 pm

What about donations to charities?

Posted by: gonzales27 | August 6, 2009, 7:08 pm 7:08 pm

What did the American people get in trade for buying the elite leaders three new jets? They make a ton of money off salary, books & bribes and get all kinds of stuff for free. They have no limits, why shouldn’t us regular peeps get to rob the children and the unborn also?

Posted by: Lazlar | August 6, 2009, 7:10 pm 7:10 pm

The average person can generate 75W of power over an 8 hour period. Stop wasting money on cars and get everyone taking government assistance to ride a pedal powered generator 8 hours a day. Just the 34million on food stamps could generate 2.5GW an hour for the 8 hours they pedal. It’s green energy, It’s healthy for people on government assitance, and the taxpayer will get something back for their taxes -> free/reduced cost electricity. It’s a win-win-win.

Posted by: rcj | August 6, 2009, 7:10 pm 7:10 pm

It is MPG, must own car at least a year and have it insured at least a year. Please get requirements correct – 5 mpg combined better than last car for 4500 rebate – 4 mpg better for 3500 however there are some weird twists – you have to take each car individually.

Posted by: Chris | August 6, 2009, 7:10 pm 7:10 pm

Yeah, right, because people with incomes under 50K really should be taking on more debt in this day and age. Now my tax dollars are buying new-cars-for-welfare.

Posted by: Stacy | August 6, 2009, 7:13 pm 7:13 pm

Dang, I didn’t know I was a millionaire if I made over 50K.

Posted by: marvin | August 6, 2009, 7:14 pm 7:14 pm

effectively a tax increase to people between 50 and 250 k.

Posted by: Captain Steve | August 6, 2009, 7:15 pm 7:15 pm

If you are making less than $50K chances are you can’t afford a new car without borrowing a significant portion of debt which created this mess to begin with.

Posted by: Luke | August 6, 2009, 7:15 pm 7:15 pm

Too late!
I just took delivery of my new Ford yesterday!
I made $232,000 last year, but if you want the car back, you’re going to have to come and pull it out of my cold dead hands…

Posted by: BeeVee in LA | August 6, 2009, 7:16 pm 7:16 pm

As one of the villans who is 1% of the population that pays half of all taxes, I had no problem taking an old beater I keep at an remote airport for transportation when I fly there in one of my airplanes, and trading it in on a nice new shiny Ford Escape. I considered it a <1% tax rebate for last year's tax bill.
The clunker program is a monstrosity, using borrowed money from China to subsidize some small segment of the economy at the expense of all taxpayers. You can bet some lobbyist got a huge spif from some industry group of this boondoggle, and someone ought to look into the authors and creators of this program.
This isn't the gubment's job !

Posted by: Mike Wryly | August 6, 2009, 7:16 pm 7:16 pm

The estimate is that 250,000 “clunkers” will be destroyed as a result of the first $1B program. The average value of these “clunkers” to the poor or the 3rd world or the disabled would be at least $1000.
Thus we are destroying $250,000,000 in value that would otherwise would have found its way into the hands of the poor or disabled that can’t possibly afford a new car.
And the Democrats are suppose to be compassionate? They are suppose to care for the poor? Yea. Sure.
Way to go, Dems! The world is now a quarter of a billion dollars poorer. And by borrowing the money from overseas and paying it back with interest, all of us are even poorer still! Good job!
Soon you will have all of us begging for the scraps from your table and terrified we might offend you by pointing out the truth.

Posted by: Karl Q | August 6, 2009, 7:18 pm 7:18 pm

It was a DEMOCRAT AMENDMENT. So now this simple cash for clunkers idea requires you bring in YOUR TAX RETURN. Don’t you love the DEMS running your country?

Posted by: Chaucer22 | August 6, 2009, 7:19 pm 7:19 pm

If $50,000 makes me rich…where the heck is my butler…and jet plane…
And govt. want to run health care…really…really…they can’t even run a simple rebate program…

Posted by: Chris | August 6, 2009, 7:19 pm 7:19 pm

Isn’t there enough programs for the poor? Can’t the middle class have one program? Do the Democrats fear a teacher like me, making $51,000, might actually get a financial break? I accept that my kids can’t get the grants and so forth, and had to take loans, I accept that I had to pay for their health insurance, that I don’t quality for Earned income tax credit,but for once, can I NOT be classed as a millionaire? You know what I did with my Bush tax rebate to the rich in 2001? I bought my college bound daughter a computer! What an aristcrat am I!!

Posted by: mary | August 6, 2009, 7:21 pm 7:21 pm

The biggest mistake of the Cash For Clunkers bill was that fact that in the bill the is NOT a stipulation that it is only redeemable with the Big Three. I mean, after all, 2 of the 3 took bailouts, wouldn’t it make sense that if the Govt is itching to spend more money that they would funnel the potential buyers willing to trade their clunker in back to the Big Three? That’s just poor management IMHO. But, as much as I hate to say this, our beloved country has become one giant land mass of mismanagement. After all, that’s the whole reason why we are in this mess in the first place!

Posted by: Tom | August 6, 2009, 7:21 pm 7:21 pm

Not only is this a subsidy for the wealthy, because many of us cannot afford a new car even with a rebate, but the program throws away perfecly usable “cheap” vehicle. I know thousands of people who would love to have a 2 thousand dollar clunker to drive around. My daughter, for one.

Posted by: Tom Mac | August 6, 2009, 7:21 pm 7:21 pm

Put a stake in the heart of this already stupid idea – borrowing money we can’t repay to buy a new car most people who traded in a real clunker can’t afford anyway. This program needs an early retirement before real damage is done. Half the money is going to foreign car dealers. Only a Congress person could be surprised people lined up for $4500 and desperate dealers are no doubt taking full advantage of the gullible borrowers as well. This recession won’t end until we get a new Congress and a new President – buckle up folks!!

Posted by: Dennis in Ohio | August 6, 2009, 7:21 pm 7:21 pm

Who pays the income tax on the $4500?

Posted by: billb | August 6, 2009, 7:22 pm 7:22 pm

I just heard that the entire cash for clunkers program will save the amount of gas that american’s use in 4 hours…. so whats the point,you might as well driver bigger and safer cars

Posted by: Johan | August 6, 2009, 7:23 pm 7:23 pm

Why the hell does the American taxpayer have to pay $4500 to let their neighbors buy a new car? THE COUNTRY IS BROKE FOR GOD SAKES! Unemployment is high, people can’t pay their mortgages and we already bailed out GM and Chrysler. Not to mention the banks. Yeah so lets have people sign up for car loans. This country is nuts! Phew… okay I feel better now. Have a great weekend.

Posted by: MarkG | August 6, 2009, 7:24 pm 7:24 pm

So your telling me someone with an income of $30,000 a year is going to go out and buy a $24,000 car? Where are they going to get financing? If so are we going to have a long list of bank defaults in the car market the next 6 months?
The cars traded in for Cash for Clunkers are immediately destroyed.. So even if you are dirt poor, or your kids have just got their license.. you will have no chance of buying a car for under 7 grand.. And should you blow an engine on your 1995 model vehicle you won’t find any used parts.. You are stuck with a new engine..
And then kill business for the non-franchised car dealers who can’t participate in the cash for clunkers program. Absolutely silly.

Posted by: Greg | August 6, 2009, 7:24 pm 7:24 pm

Hey a $4500 rebate to take on a $10,000 to $35,000 loan that will take 3 years or more to pay off in the middle of the greatest unemployment period since the depresssion (caused by bad home loans!!!) Yeah where do I sign up! LOL
This is an amazing program. Just think about it. In one fell stroke you can: Increase your personal debt, lower your credit rating, dispose of all your disposable cash, raise your auto insurance rates, increase the national debt and deficit, and raise your tax bill. Just to go along with the infamous CRA, they should have called it the “Clunker Reinvestment Act”

Posted by: guesswhaturwrong | August 6, 2009, 7:25 pm 7:25 pm

I thought the point of the program was to get gas-hog cars off the road, not to help those that “make less than $50,000″ — a clunker is a clunker. The dems HAVE GOT TO STOP screwing the middle-class!

Posted by: JCBlvu | August 6, 2009, 7:25 pm 7:25 pm

When The CARS program “ran out of money”
There were around 27,000 deals done and another 25,000 pending. Do the math folks. That’s 52,000 deals and if you use the max$ of 4500 each you come up with $234 million. Where is the rest of the first 1 BILLION dollars?
Me thinks something is fishy here

Posted by: Dave | August 6, 2009, 7:26 pm 7:26 pm

Cash for Clunkers was/is a terrible in spite of its ‘success’.. It doesn’t encourage buying American cars keeping Americans working and it forces the consumer to buy a new car instead of the choice of something pre-owned which means paying more and having 5-6yrs of monthly payments. In addition when the program ends at some point, the drop off in car purchases will be very dramatic because the the consumer is now conditioned to expect a $4500 cut off the price of a car..

Posted by: Tyler | August 6, 2009, 7:27 pm 7:27 pm

Wait for the buyers to miss three months payments and then you can buy the repro.

Posted by: korean vet | August 6, 2009, 7:27 pm 7:27 pm

What a boon. Short term good for new car sales but what about next year. How many used car small business owners is the program going to run out of business? Not good for the environment at all when it takes more energy to manufacture a car than is saved. Throwing money at a situation doesn’t solve everything. The more the government meddles the more…..

Posted by: whatajoke | August 6, 2009, 7:27 pm 7:27 pm

This program is ridiculous.
All they are doing is shifting the demand from the next two years into two weeks. They are going to regret this in the future.
At least, when I actually want to buy a car they will be hurting and I will have a ton of wiggle room.
The demand for free money is unlimited, any congressman that thought this was a good idea is an idiot. Take some economics classes and think for five seconds.
You can’t eliminate debt by starting other expensive programs.

Posted by: Rassy | August 6, 2009, 7:28 pm 7:28 pm

Millionaires don’t have clunkers-are you kidding me!!!
Posted by: rita sipe | Aug 6, 2009 6:11:54 PM

Posted by: Timmeh | August 6, 2009, 7:28 pm 7:28 pm

Anyone only making $50,000 a year should not be buying brand new cars even if they pay cash. New cars are a complete waste of money. My wife and I earn more than three times that and I honestly dont think I can afford a new car not that I would buy one. Why on earth does someone waste so much money? That is why the poor stay poor. We have idiot politicians and the media pushing stupid ideas on the less fortunate until they can never get out of the hole they dig for themselves.

Posted by: Ford Lincoln Mercury | August 6, 2009, 7:28 pm 7:28 pm

Oh good, now everyone coming into the showroom I work in has to pass a means test? Do I insist everyone brings in a W-2??????? Just how, in the name of all that is holy, do I verify this? And BTW Senator Harkin, is there a means test for corn subsidies?

Posted by: Pat Ford | August 6, 2009, 7:29 pm 7:29 pm

The millionaire that is near and dear to me personally has a net worth in the tens of millions of dollars. He drives a 1997 base model Lexus, with over 150,000 miles on it. The horn is broken, and the air conditioning stops on any trip longer than 10 minutes. (It is 100 degrees here.) He refuses to sell the car until it stops running. He considered cash for clunkers, but the car did not qualify, since it gets decent gas mileage. (Of course his car is the model with the smaller engine. He did not want to spend too much money on gas.)
When Congress raises taxes on the rich again, and he has less money to spend, he will not put off buying a new car. He was not going to do that anyway. Instead, he will put off hiring and paying the salary of someone who was going to buy a car. And, as the unemployment rate approaches 10 percent, that is something worth thinking about.

Posted by: Ryan | August 6, 2009, 7:29 pm 7:29 pm

This program seems to prey on the people that do not need to take on any additional debt. The people that make less than 50k should most likely not take on debt for a new car. The car will likely depreciate almost the amount of the rebate as soon as they drive off the lot.
Unless they can pay cash and have a very secure financial position I would always advise people to buy a car that is a few years old and has depreciated a bit.
If only there was a recent precedent for the government pushing people into buying something on credit that they cant afford!
Do you think there will be a auto bubble that leads to a large percentage of people defaulting on these loans in a few months?
It also seems to get people into the mentality that we need to look out for how to get ours from the government. I am afraid that this will disrupt the normal market and cause people to make bad decisions, because they need to get their deal while they can.

Posted by: whee | August 6, 2009, 7:30 pm 7:30 pm

America is ridiculous. I can’t wait for it to go bankrupt.

Posted by: geoff | August 6, 2009, 7:31 pm 7:31 pm

“i.e. trade in your 07 Suburan XL for a 2010 Lexus SUV Hybrid. Get trade-in plus an additional $4,500 from Uncle Sam!”
Not so, you get no so called ‘trade-in’ the 3500 or 4500 is all you get. The dealers cannot resell the old car, the engine has to be ruined and it has to be destroyed.

Posted by: Johnathan | August 6, 2009, 7:32 pm 7:32 pm

Ken, you’re incorrect. You don’t get trade-in value plus the rebate. The cars are required to be disabled and scrapped, so why would the dealership any more than they could get for scrapping the car? Last time I checked (I’ve never
checked) scrap value isn’t usually enough to make getting rid of your 2008 Ford Expedition to take advantage of the CfC program.

Posted by: Charlie | August 6, 2009, 7:32 pm 7:32 pm

all these programs do is control everyone’s behavior. we’re all robots.

Posted by: barakobrian | August 6, 2009, 7:33 pm 7:33 pm

How confusing for democrats:
Cash for communism?

Posted by: karen | August 6, 2009, 7:34 pm 7:34 pm

We cannot afford the payments on a new car and we make over 50K. A few years ago in New Orleans and big cities the government offered $100 if citizens turned in a gun, then the guns were melted down and we were one step closer to gun control. Today, our old reliable cars are being “recycled” and destroyed. Where will we get parts for our old suburban? These new cars can’t even pass a bumper test, and we have to give up being safe as we drive down the road. This is no different from Cuba or communist governments.

Posted by: Susie Homemaker | August 6, 2009, 7:34 pm 7:34 pm

Everyone making over $50K should just stop working (and paying taxes) for the year at $49,999 out of spite. And then not buy the car anyway. The Japanese must be howling with laughter at us– along with everyone else by now– for Toyota/Honda/Nissan’s “corporate welfare” (as the left loves to call it in every OTHER case).

Posted by: PC the anti-PC | August 6, 2009, 7:36 pm 7:36 pm

Has SANITY left the planet ? My God…what have we become…. Conservatism is common sense defined…
Liberalism is common sense denied…

Posted by: The Right Side | August 6, 2009, 7:36 pm 7:36 pm

I’m shocked. How could anyone be so stupid? People with incomes of 50,000 or less are out shopping for a new car? Really? Is Congress really that absent from “reality”? I could see a cut off at 200,000. Atleast, that would cover the middle class who are employed and not on welfare; those who really deserve a break after “carrying” the country on their own backs. Here’s where I must turn my interest to something other than politics.

Posted by: uck | August 6, 2009, 7:37 pm 7:37 pm

I think the Republicans are actually brilliant on this one. Too bad it passed. This would have been a very simple lesson in economics for the Dems. If you limit the clunker cash to those earning under $50,000, you may have a hard time finding people who can actually afford a new car. Therefore, no stimulus to the economy. Larger wage earners with cash burning in their pockets keep the economy moving. Unfortunately that’s the way it works.

Posted by: conversefive | August 6, 2009, 7:39 pm 7:39 pm

I drive a clunker and i’m keeping it! What a mess we have with this crazy administration at the helm.

Posted by: John Collins | August 6, 2009, 7:40 pm 7:40 pm

This program will be an even bigger joke if this amendment is included. So, only broke people will qualify for the program…should they be buying new cars to begin with?

Posted by: Mark D | August 6, 2009, 7:41 pm 7:41 pm

The amendment was presented because most of the people turning in cars are making more than that, they are the only ones that can commit to another loan payment at this time. The republicans knew this would be a speed bump and personally, I wish it would have had a chance. I am not for any of this since I see every $4,500 to help some middle class or greater buy a car as coming out of my pocket. This is only accelerating a purchase that would have come in 1 or 2 years anyway. So now, in 1 or 2 years, fewer cars will be purchased. This whole thing is political now that people have discovered where to get something for free and the politicians have decided that giving away more of our money is something successful.

Posted by: hoosier8 | August 6, 2009, 7:42 pm 7:42 pm

The CARS program is a sham. I’ve been shopping for a new car for the past few months and since the ‘clunker’ program is in place there are no longer any deals to be made. For an instance — last month I was looking at a Chevy Traverse at a local dealership. I was able to talk the dealership down to $25K. I visited the same dealership two weeks ago and the price is now $28.5 with a ‘clunker’ rebate.

Posted by: mark | August 6, 2009, 7:43 pm 7:43 pm

I still wrestling with the idea of why I (with my tax money) should be buying anybody other than my family memnbers a car.

Posted by: Fred | August 6, 2009, 7:43 pm 7:43 pm

I say set the minimum income at $250,000 per year. These are the people who pay the bulk of the taxes. Our millionaire son and daughter-in-law have two clunkers; they don’t want their teenage kids riding around in non-clunkers! The $50,000 people can’t afford the new cars anyway.

Posted by: Dan Hermann | August 6, 2009, 7:43 pm 7:43 pm

Oh no a scarry thought!
What happens to the fuels tax once all these vehicles have greatly incresed gas mailage. The tax will be raised to meet the need of low revenues!

Posted by: svairo | August 6, 2009, 7:44 pm 7:44 pm

I wish Obama would have required the program be limited to the purchase of American Cars. We did just Buy GM. Now we are paying people to buy a HYUNDAI Obama has no business sense.

Posted by: Dennis D | August 6, 2009, 7:46 pm 7:46 pm

I’m nearing a million net worth, and I drive a 1997 200,000 miles Dodge Caravan.

Posted by: Millionaire | August 6, 2009, 7:46 pm 7:46 pm

So… someone who makes $50,001.00 is a millionaire?

Posted by: John Jacobson | August 6, 2009, 7:46 pm 7:46 pm

When will the Congress and Prez understand that ALL people paying taxes have the same rights under our constitution. To tax higher paid people more, to make them bail out everyone else, to take their businesses away from them is UNFAIR and UNCONSTITUTIONAL. In states where salaries are higher, but so is the cost of living, a salary under $50 K qualifies as “working poor” or at best, “lower middle class”. And yes, as someone commented above, this is going to snare those who were snared in the subprime mortgage loan mess. Then six or seven months from now, the repo man is going to be hard at work and so are we who have had to pay for bank, insurance, and auto bailouts already. Brilliant, Congress!

Posted by: Karen R | August 6, 2009, 7:46 pm 7:46 pm

No tax hikes for families making $250,000 or less. Now clunker money for those only making $50,000. One minute program is to stimulate car buying and help clear the inventory, now a program to help moderate income families buy a car. It’s coming – the middle class are going to get the shaft again.

Posted by: barrierislandbarry | August 6, 2009, 7:47 pm 7:47 pm

I picked up an old van last year at aution on a whim for $400, drove it around for a bit, thought about letting the kids at it with some spray paint and now it’s worth 10x that towards a new car! I jumped at the deal but wading thru the tricks and traps of the “car deals” took a few days to find the right deal. Hyundai Accent 3door with max 41mpg, A/C, automatic and with my precious clunker and some $$$ down financed $6k for the lenght of the bumper to bumper warrenty @ 4.5%.
I’m always curious about whether I will look back and think it was the best of the options we have in life….. ummmmmm.

Posted by: Marcus | August 6, 2009, 7:47 pm 7:47 pm

Guess that’s what happens when you rush legislation through without studying it.

Posted by: MoreSpeechlessEveryday | August 6, 2009, 7:48 pm 7:48 pm

Let’s take a step back and look at the facts. This program was never intended to help the poor. The poor cannot afford the payments on a new car. If they try, most of them will end up getting their new car repossessed and end up with no car.
What it will do is raise the prices of used cars (fewer to sell), and make it more expensive to repair used cars (parts will be harder to find).
This program was never intended to help the environment. Have you seen the videos of how they disable the engine. It creates more pollution than driving the car would create in years. Plus the energy used to scrap a usable car and build a new one far out ways any mileage savings on the new car.
There are more, but when you look at the facts you have to wonder who this program was designed to help. Foreign automakers, auto loans companies, foreign investors or auto unions? Those are the only ones that come to mind.
P.S. If you think helping the union = helping union members, well lets just say, their dues are still due at the end of the month.
P.P.S. This program doesn’t really help the rich either. They may be able to take advantage of the program, but they will see higher taxes and less capital because of this. I applaud the Republicans for trying to add this amendment. Anything that makes this program go away or become less usable is good for everyone (except the a fore mentioned people).

Posted by: Pat Brown | August 6, 2009, 7:50 pm 7:50 pm

It was only a matter of time. The program’s not really meant to get gas guzzlers off the road — it’s to placate those who vote a certain way!

Posted by: Brian W. | August 6, 2009, 7:51 pm 7:51 pm

Remember cash for guns? They destroyed them too. Crazy.

Posted by: barrierislandbarry | August 6, 2009, 7:51 pm 7:51 pm

It’s amazing how little most people understand about the population of this country who are truly wealthy. So many sit there and vilify a group of people they know absolutely nothing about, and their self-righteous ignorance is the primary reason why they will never achieve that demographic themselves.

Posted by: WK | August 6, 2009, 7:52 pm 7:52 pm

The owners of the dealerships almost certainly make more than $50k – why do they get our tax dollars to get richer?

Posted by: RedLA | August 6, 2009, 7:52 pm 7:52 pm

To rita-sipe who thinks millionaires don’t have clunkers. I know three who do. I have a very comfortable neighbor who had his clunker towed to the entrance of the dealer. He got it and it huffed and puffed (barely) into the dealership to qualify. At least we are entertained as the country is going into hock. What next, Pelosi on food stamps?

Posted by: dogdoc | August 6, 2009, 7:52 pm 7:52 pm

LoL.this is to funny. Single 47 year old white male, High school drop out…Vet and minimum wag security guard…only makes 14,000 a year. Gets rebait. :)

Posted by: Cross of thorns | August 6, 2009, 7:53 pm 7:53 pm

$4,500 for people that pay ZERO federal income tax for a new car
$8,000 for new home buyers
Too bad I’m the idiot that worked hard, finished school, applied myself, got promoted, saved, paid my bills, and bought a house!
What the hell was I thinking back then?

Posted by: Frank | August 6, 2009, 7:54 pm 7:54 pm

Better to have rebated $4500 back on our Federal tax returns. Most people would have pumped that back into ALL areas of the economy – benefiting more businesses and employees around the USA.

Posted by: John | August 6, 2009, 7:55 pm 7:55 pm

I am so happy that my tax money is now leaving my pocket so someone (I do not know) can get $4,500.00 of FREE MONEY to get a car and then have that money go to Japan and ultimately back to the gazillionairs in China.
I just realized that I am working for the company store.

Posted by: TAX SLAVE | August 6, 2009, 7:59 pm 7:59 pm

Take two or three years worth of car demand. Condense it into 2 weeks.. Hasn’t Congress learned that’s exactly what happened when a tech bubble was created with the Y2K scare? It doesn’t matter anyway.. They can just pass the buck to Bush.. Its all Bush’s fault..

Posted by: greg | August 6, 2009, 8:03 pm 8:03 pm

If the media were in an alternate universe and support Republican causes, the headline would be ‘DEMOCRATS VOTE TO GIVE CLUNKER $$$ TO THE RICH!’
Of course, there is no such universe.

Posted by: bpjam | August 6, 2009, 8:04 pm 8:04 pm

THE BIGGEST SURPRISE COMES IN JANUARY WHEN ALL CAR PURCHASES COME TO A GRINDING HALT, WHILE AMERICANS WAIT FOR THE NEXT “CASH FOR CLUNKERS” OFFER..
ONCE THE U S PUBLIC GETS A “REBATE” OF ANY KIND, THAT ESTABLISHES THE NEW “FLOOR” PRICE,.. WHAT WILL OBAMA DO THEN FOR HIS OWN CAR CO.., “GOVERNMENT MOTORS”?

Posted by: RAY P | August 6, 2009, 8:08 pm 8:08 pm

I’ve heard that it takes the energy equivalent of 1,000 gallons of gasoline to produce one new car. So, if we add another $2B to this program, we are wasting another 444,444,444 gallons of gasoline. This program will only help destroy the environment!

Posted by: Dawn | August 6, 2009, 8:09 pm 8:09 pm

What do you Warren Buffett drives?

Posted by: Dennis | August 6, 2009, 8:09 pm 8:09 pm

why am I paying for anyone’s car? No one paid for mine.

Posted by: Larry in Sac | August 6, 2009, 8:13 pm 8:13 pm

Am i missing something here, why are we not donating these vehicles to a family thats in greater need or has a cluncker thats even older and can”t take out any more debt.

Posted by: domenick st petersburg | August 6, 2009, 8:18 pm 8:18 pm

Dumb program that takes tax dollars from the poor and gives them to people that can actually afford a new car of which 4 out of 5 are foreign. Another unsustainable artificial mini-bubble that will result in decreased sales down the road. Silly really, and we are destroying decent assets that are paid for only for our citizenry to take on more debt. Why politicians?

Posted by: Huh | August 6, 2009, 8:20 pm 8:20 pm

This is a classical example of broken window economics with the added burden that we’re actually paying the vandal to break the window.
Charlie Foxtrot in DC.

Posted by: Cardiac | August 6, 2009, 8:34 pm 8:34 pm

I wrote the original cash for clunkers program for the Senate in 1979. In a nutshell, it was a variable and increasing tax credit that increased based on the difference in mpg of the car traded and the car purchased. The minimum was $100 for a 1 mpg difference, to $9000 for a 30 mpg difference. Foreign made cars only partially participated in the plan. There was much more, but that is the basics. The problem with this plan is there is no incentive for the purchaser to greatly increase their mileage, and no incentive for the mfg to increase theirs. With the variable credit, there is an incentive on both sides.

Posted by: Howard | August 6, 2009, 8:38 pm 8:38 pm

Are you kidding me? Millionaires are the ones driving clunkers, How do you think they became Millionares, by buying a “new” car every 5 years?
Posted by: Mike Jones | Aug 6, 2009 6:18:50 PM
+++++++++++++++++++++++++++++++++++
I denounce that statement! I am far from a millionaire (80K/yr), and I would never participate in this plan. I am in the same vehicle I have owned since 2001. That was the second new vehicle I bought in my life, and never plan on buying a ‘new’ vehicle again! The depreciation is awful! It’s not an asset.
My next vehicle will be a certified pre-owned one.
Other than that, I think the ‘clunkers’ program is immoral to tax payers. But that’s just one man’s opinion.
Look for the mortgage meltdown to spread to the auto market here soon. More bailouts, more of our money sent down the drain…geez, how did we let this happen to our country over the last several decades? I could rant, but I will not.
Peace to all!
PS – I hope you have some savings!!!

Posted by: mrubuntu | August 6, 2009, 8:45 pm 8:45 pm

It may sound like a good idea, but what about all of us who have no jobs?
Is it fair we cannot take advantage of a good deal?
I have a clunker I would love to turn in, but having no job, I do not qualify for a loan.
Plus I just watched on CBS news that now the cash for clunkers is such a huge hit, the dealers are now raising all the prices.
How is this helping out any of the people who really would like to take advantage…i.e. the jobless?
Hopefully once the jobs start up again, the government will be nice and let the rest of us people be able to get a deal too.

Posted by: lm | August 6, 2009, 9:10 pm 9:10 pm

It’s just like the sub-prime debacle around here. People who cannot possibly afford the car payments are being lured in with the $4500 from the taxpayers and $4500 from the dealer. That gives them enough $ down to jump the credit hurdles and they drive off in new cars they cannot possibly pay for tommorow! Wow – the Dems sure are idiots!

Posted by: Grace44 | August 6, 2009, 9:56 pm 9:56 pm

If one assumes that this is being done in part to reduce CO2 and ‘help the environment’ then the logic is pretty blasted questionable.
It COST a lot of CO2 (energy) to build every one of those cars. It costs a lot of energy to build each of the new cars. For each car scrapped, a new one must be built, thereby expending all the CO2 involved in the process. You scrap valuable vehicles who’s continued use would avoid the additional CO2 necessary to create a new car, and you are likely wasting more CO2 right there than would ever be made up by the gain in mpg difference between the two cars.
On top of that, you scrap valuable used vehicles that people WHO CAN’T AFFORD A NEW CAR even with the clunker program could move up to, and that may well be more efficient than the older vehicle they would get rid of. Tell me the logic there? The program forcibly takes tax dollars from citizens who never got a say in the program, to give to people who can afford new cars while discriminating against people who are too poor to afford those new cars. Plus you are also removing the very used vehicles that would be a step up for those poor people from the market.

Posted by: And Atlas Shrugs Yet Again | August 6, 2009, 10:57 pm 10:57 pm

No seriously, millionaires don’t have clunkers so this is a moot point. To qualify for this program you have to have owned and insured the vehicle for a year-how many people do you know with high incomes that drive cars with a trade-in value less than $4500? They don’t and therefore wouldn’t use this program anyway.
Posted by: Rita | Aug 6, 2009 6:17:37 PM
___________________
Rita, I think you would be quite surprised. Someone else already noted that very often folks who wind up being millionaires get there because they are FRUGAL. There have been studies along these lines, and years ago even a book (prolly more than one) that I think was titled something like ‘The Millionaire Next Door’ As to knowing people with high salaries who own older cars worth less than $4500, I personally over the years have known quite a few. Sometimes it was a second car or a farm vehicle, others it was a primary vehicle, but as I said, I think you would be quite surprised.

Posted by: And Atlas Shrugs Yet Again | August 6, 2009, 11:07 pm 11:07 pm

The only qualification is that the car being traded in gets less MPG than the car being purchased. i.e. trade in your 07 Suburan XL for a 2010 Lexus SUV Hybrid. Get trade-in plus an additional $4,500 from Uncle Sam!
Posted by: The Explainer | Aug 6, 2009 6:15:38 PM
—————————-
Actually the vehicle has to be less than 25 years old (what sense does THAT make??), must be drivable, and for a car, get less than 18 mpg avg EPA est mileage. Then the amount you get depends on how much more the car you buy gets over the mpg of your trade in. Trucks and SUVs have lower mpg requirements and lower mpg difference between trade in and new also.
Key point: You do NOT get trade in value on your car plus the clunker amount. You only get the clunker amount. Plus whatever incentives the dealership is offering.
Note, apparently there is a HUMMER that qualifies as an acceptable new car in the program. Oh, that is one other limitation on the program, the new car you get can’t cost more than $45,000.
Still, to me, the whole thing seems pretty illogical, twisted, and unfair to many folks both private individuals and in business. (and no, I’m not and nor have I ever been involved in auto related industry)

Posted by: And Atlas Shrugs Yet Again | August 6, 2009, 11:17 pm 11:17 pm

If one assumes that this is being done in part to reduce CO2 and ‘help the environment’ then the logic is pretty blasted questionable.
It COST a lot of CO2 (energy) to build every one of those cars. It costs a lot of energy to build each of the new cars. For each car scrapped, a new one must be built, thereby expending all the CO2 involved in the process. You scrap valuable vehicles who’s continued use would avoid the additional CO2 necessary to create a new car, and you are likely wasting more CO2 right there than would ever be made up by the gain in mpg difference between the two cars.
On top of that, you scrap valuable used vehicles that people WHO CAN’T AFFORD A NEW CAR even with the clunker program could move up to, and that may well be more efficient than the older vehicle they would get rid of. Tell me the logic there? The program forcibly takes tax dollars from citizens who never got a say in the program, to give to people who can afford new cars while discriminating against people who are too poor to afford those new cars. Plus you are also removing the very used vehicles that would be a step up for those poor people from the market.

Posted by: And Atlas Shrugs Yet Again | August 6, 2009, 11:22 pm 11:22 pm

Ummmm…. We The People are Uncle Sam! WE ARE PAYING FOR THESE PEOPLE TO GO BUY CARS!….. THE BILL WAS STUPID AND WAS CONJURED UP BY A 31 YEAR OLD KID RIDING THE COAT TAILS OF HIS PARENTS.
RINO!!!!!

Posted by: Mary | August 7, 2009, 12:15 am 12:15 am

Try to remember that there are a lot of people beyond Detroit who make parts that go into the cars that are being sold. They live in small towns and cities all over the country. Anything that stimulates that economy is good for the country.

Posted by: SJD | August 7, 2009, 12:38 am 12:38 am

If one assumes that this is being done in part to reduce CO2 and ‘help the environment’ then the logic is pretty blasted questionable.
It COST a lot of CO2 (energy) to build every one of those cars. It costs a lot of energy to build each of the new cars. For each car scrapped, a new one must be built, thereby expending all the CO2 involved in the process. You scrap valuable vehicles who’s continued use would avoid the additional CO2 necessary to create a new car, and you are likely wasting more CO2 right there than would ever be made up by the gain in mpg difference between the two cars.
On top of that, you scrap valuable used vehicles that people WHO CAN’T AFFORD A NEW CAR even with the clunker program could move up to, and that may well be more efficient than the older vehicle they would get rid of. Tell me the logic there? The program forcibly takes tax dollars from citizens who never got a say in the program, to give to people who can afford new cars while discriminating against people who are too poor to afford those new cars. Plus you are also removing the very used vehicles that would be a step up for those poor people from the market.

Posted by: And Atlas Shrugs Yet Again | August 7, 2009, 1:05 am 1:05 am

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