Cash for Clunkers

Happy Monday to All:

From all accounts, the "cash for clunker" program is a success! Ford Motor Corporation reported a spike in sales volume and several friends of mine, who were on the fence about purchasing a new vehicle, stepped up and purchased.  

Essentially, the "cash for clunker" program is a federal program, which allowed consumers who were driving around a vehicle, that was perhaps, not fuel efficient, to take that vehicle in to a dealership and receive "up" to a $4,500 credit towards the purchase of a new vehicle.  This benefited all parties.  The dealership would be able to sell a brand new car, the consumer would be able to get a credit for their vehicle, and the government would begin getting not efficient vehicles off the road.  

There were a few little catches to the program.  The owner of the vehicle had to be the registered owner for at least a year, the new vehicle had to be more fuel efficient, the vehicle had to be without liens, and the vehicle had to be running.  Also, the new vehicle to be purchased had to be priced under a certain price and get a higher MPG.  These are just general terms, I am putting out.  One may go to the Federal Government site for the actual specifics.

Everything worked to perfection.  Consumers started buying new cars and people were getting rid of non efficient vehicles.  The billion dollars that Congress had set aside for this program is running out or has run out.  To the people who were waiting for a couple of months to buy, may not have access to this program.  I heard through various media sources that there is legislation to try and get another 2 billion dollars for this program.

In my book, this is Federal Stimulus Money at it's finest! The "cash for clunker" program shows immediate results.  I, as a tax payer, would rather see the Federal Government fund monies to this type of program that helps the consumer, over "stimulus" monies that are designed to help financial institutions who "screwed up" and have poor customer service and have malcontents working (see previous blog).  We all should write our representatives and let them know to fund more of these types of programs! The "cash for clunker" program is what we need more of.

It's August 3, 2009 and I am Bullish on Sacramento

David Ohara

@dwo34 - twitter

dwo34@aol.com

916-600-9495