No clunker here
Tuesday, August 11, 2009
WHETHER SEEN AS a true stimulus or the creation of a temporary bubble, the Cash for Clunkers program is so far working the way it was intended.
The program, which began just more than two weeks ago and recently was extended by Congress with an additional $2 billion, has proved more popular than its originators could have imagined. Car shoppers all over the country are taking advantage of the $4,500 offered to trade in those old gas-guzzling clunkers.
The intent of the program is twofold: to take less-efficient cars off the road while providing a boost to beleaguered automakers.
As far as stimulus programs go, the $3 billion program is proving to have quite a bit of bang for the buck. By all measures, dealerships across the country are seeing a spike in sales, and people are flocking to the lots to see if they qualify. Dealerships in Emporia are seeing higher sales than they have in a while .
“We’ve had several people who came in because of the program and bought a car even though they didn’t qualify,” said Ron Carlson of John North Ford.
One immediate indicator that the program is working is Ford Motor Co.’s July sales numbers, which increased for the first time in almost two years.
The increase in sales is bound to have effects throughout the broader economy. If the program spurs the sale of more than half a million vehicles, as the government estimates, the boost to the manufacturing sector could be substantial. With inventories dwindling because of previous cuts in production, companies will have to ramp up production to replenish their supplies.
And it’s not just automakers that will benefit. A broad spectrum of auto-parts suppliers and ancillary businesses will see the effects of the economic boost.
One argument against the program is that new car payments will mean less money for people to spend on other things in this cash-strapped economy. The converse is that less money spent on gas and maintenance of older cars could mean more pocket money, leading to a longer-term economic boost.
With car dealerships crawling with interested customers, we are hard-pressed to find a dealer or automaker who will say that Cash for Clunkers was a bad idea.
Russ Morgan
Reporter
truelovecharlie (anonymous) says...
Well, that's a no-brainer! Why would a new car dealer say it's a bad thing? They are getting top dollar for their inventory as people that qualify for the cash for clunker are so happy they negotiate little or not at all. The new car dealer's are making top gross. Ask the pre-owned dealer's what they think of the cash for clunker's program. I bet you find plenty of them thinking it's a bad deal.
August 11, 2009 at 2:54 p.m. ( permalink | suggest removal )
open_eyes (anonymous) says...
So would less money spent on maintenance of older vehicles negatively affect mechanics, parts suppliers, etc? Gosh, I think some of my old clunkers nearly single-handedly put some mechanic/garage owners kids thru college! - LOLOLOL :)
August 11, 2009 at 4:03 p.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
In the long term these government programs, have always contributed more to our amusment than they have to the benefit of the proletariat.
August 11, 2009 at 5:20 p.m. ( permalink | suggest removal )
dalelinn (Dale Linn) says...
Is this much different than the government paying homeowners to let someone break the windows in the homeowners house so that the window company can install new windows. Hmmmmmmmm..........maybe they should pay us to burn our houses? Ahhhhhh......stimulus!
August 11, 2009 at 9:08 p.m. ( permalink | suggest removal )
justthefacts (anonymous) says...
I read that Reebles is having a sale on preplucked chickens, just ready to roast. Mighty tasty I bet.
August 11, 2009 at 11:16 p.m. ( permalink | suggest removal )
seriouslyfolks (anonymous) says...
"Mighty tasty I bet."
Before or after the roasting?
August 11, 2009 at 11:40 p.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
Torture chickens and numbers and they will confess to anything.
August 12, 2009 at 12:21 a.m. ( permalink | suggest removal )
midnight_rider (anonymous) says...
Get real reddog - "Torture chickens" go back the old bar.
August 12, 2009 at 10:38 a.m. ( permalink | suggest removal )
seriouslyfolks (anonymous) says...
Dang you're throwing in the steak knives now?! I don't know if I can pass that up! HHMMMM let me see do I try to be responsible and not spend my grand kids money in the way of my debt and the countries debt or do I spring for the new ride and FREE steak knives? Decisions. Decisions. ;)
August 12, 2009 at 1:39 p.m. ( permalink | suggest removal )
goodoleboy (anonymous) says...
Don't worry our grandkids will all be fighting wars we can't for either, and they will be wounded and unable to drive so they will enact the "cash for scooters" program which will in turn put their grandkids on the hook for for a kick ass scooter.
August 12, 2009 at 2:09 p.m. ( permalink | suggest removal )
open_eyes (anonymous) says...
LOL - And their grandkids will get in on the... "Cash for Shoes" program......
August 12, 2009 at 2:23 p.m. ( permalink | suggest removal )
goodoleboy (anonymous) says...
No by that time we won't be able to borrow to go to war and all the oil will be gone, so it will likely be roller blades, or those shoes with wheels on the back of them. Time to buy stock in Sketchers I think.
August 12, 2009 at 2:28 p.m. ( permalink | suggest removal )
seriouslyfolks (anonymous) says...
No no no. You forget that Obama will bring peace in the middle east like Clinton did. So wars, since they are all always our fault, will be a thing of the past.
August 12, 2009 at 2:35 p.m. ( permalink | suggest removal )
open_eyes (anonymous) says...
Or Burqas
August 12, 2009 at 2:35 p.m. ( permalink | suggest removal )
goodoleboy (anonymous) says...
It won't matter, Bush offspring will rig an election and start another somewhere else after plotting an atrocity on the Amearican people then blaming it on said group.
August 12, 2009 at 2:54 p.m. ( permalink | suggest removal )
open_eyes (anonymous) says...
Zero chance of the above. See other post about the latest census. And ACORN will have all the power they want by then. Anyone curious why the Black Panther case got dropped?
August 12, 2009 at 3:04 p.m. ( permalink | suggest removal )
goodoleboy (anonymous) says...
Never underestimate a Bush. Look where it got us!
August 12, 2009 at 3:28 p.m. ( permalink | suggest removal )
open_eyes (anonymous) says...
Sure we won't get another Clinton in there somewhere? :)
August 12, 2009 at 3:43 p.m. ( permalink | suggest removal )
seriouslyfolks (anonymous) says...
"HHMMMM let me see do I try to be responsible and not spend my grand kids money in the way of MY debt and the countries debt"
Well all I know for sure is that I can do something about my personal debt and think I'll pass on going deeper into it no matter how hard the government begs me to.(even though I could really use some new steak knives) The countries debt I can only worry about and be reassured by a few true believers that big government has it all under control and I should just shut up and trust in them till death. Well I think I'll continue to worry and be cautious about what I do with what little control I have left. I will not buy a car I don't need just as I did not buy more house than I needed or could afford over ten years ago. As a matter of fact I bought a house that was half of what the bank said I could afford, I took into consideration the fact that times get rough sometimes and I was going to start a family and things like that so I didn't want to dig too deep of a hole for myself. What the heck do I know though I'm just a conservative.
August 12, 2009 at 3:58 p.m. ( permalink | suggest removal )
open_eyes (anonymous) says...
loon :)
August 12, 2009 at 4:28 p.m. ( permalink | suggest removal )
seriouslyfolks (anonymous) says...
I know it. ;)
August 12, 2009 at 4:37 p.m. ( permalink | suggest removal )
dalelinn (Dale Linn) says...
Observation, I, like seriouslyfolks, am going to have to pass on the steak knives. I don't suppose you'd extend that offer to a small used pedal car if I decided to buy one for my grandaughter?
August 13, 2009 at 8:02 a.m. ( permalink | suggest removal )