'Cash For Clunkers' Prospects Bolstered By Feinstein

Source: Bloomberg

Aug. 4 (Bloomberg) -- Prospects that the U.S. Senate will add $2 billion to the “cash for clunkers” program increased when two senators who had said the auto discounts provide too few environmental benefits changed their minds.

Dianne Feinstein, a California Democrat, and Susan Collins, a Maine Republican, committed their support for more funds after the Obama administration said yesterday that the average fuel economy of vehicles purchased under the program increased 61 percent compared with the cars and trucks traded in.

“This program has done much better than we ever thought it would for the environment,” Feinstein told reporters. “The best solution is to continue the program as-is.”

Vehicles to be scrapped under the cash for clunkers, aimed at boosting U.S. new car sales, averaged 15.8 miles per gallon, compared with 25.4 miles per gallon for the new vehicles purchased, according to Transportation Department data.


Read more: http://www.bloomberg.com/apps/news?pid=20601070&sid=acu7bC0uEugI

buy what good does it do you to take $4500 to go $6-10k or more into debt. At the moment I'd rather keep my debts to a minimum.

...some people have cars that require lots of maintenance, so they want to get rid of what they have. Or, some need a bigger car because of a bigger family. etc. Either way, there's always a market out there because cars are a virtual necessity in most of the US.

Taking on debt is always a risk, especially in this economy. In the end, no one is forcing people to take on debt. If someone can't afford a new car even with the $4500 rebate, then they shouldn't be in the market at all.

Ten miles per gallon savings is a tremendous amount. It effects National Security and Climate Change and should even bring the price of oil down with Americans using less due to better mileage vehicles, without even mentioning stimulus to the economy..It is a tremendous win-win program. I can find no convincing argument against such a program.

so, in some cases, you can cut another few grand from that. As someone else pointed out, older car's might require regular maintenance, where as a new car will be under warranty. That dependability could save someone their job, or at least be able to help them and their family have less to worry about. Ultimately, responsible people will take on debt they can afford no matter the present economic climate and irresponsible people will be irresponsible, no matter the circumstances - this won't change that.

it allows me to either fix of if our car is no longer road worthy, get another used car. Not having a monthly car payment allows me to pay off debt quicker. We are currently driving our $1000 dollar cars. Next time we upgrade, it will be a $2-3K car, paid for in cash-no monthly payments. I go to bed each night with piece of mind knowing I own my home (RV) and cars. In 2-3 years we will be debt free out side of lot rent and routine expenses.

That cash for clunkers looks like a pair of mink hand cuffs to me.

www.daveramsey.com/etc/lms/drive_free/?ictid=Useful_Tools

And our cars have always been as fuel efficient as we could get (Honda and Toyota). Of course they make some assumptions on the video but the point is, you keep the interest instead of paying the bank. Part of becoming wealthy is not what you make but what you save.

You can have a 'new used peice of shit' if you wanna buy mine for $4,500.

is that the government is giving you 4500 to go 10,000 into debt and 14500 won't get you much of a new car anyway. Most folks will be on the hook for more. If you can afford that, great. I think we are still in for more and facing a crisis with debt is a recipe for disaster. I won't take the bait Driving these "new used piece of shit" has helped our family get out of debt. Having cash on hand when everyone is drowning in debt and selling their possessions for what they can get is a good thing. You pick up real bargains. I think in the near future, we will be buying one of these new cars

Her vehicle is 13 years old. Her late husband's truck is too big and expensive for her to drive. She wants a smaller, more fuel efficient sedan.

and what anyone could get just by buying for MPG instead of all the image and stuff.

.... but it doesn't seem like that's going to happen any time soon.

but clearly, she realizes that the extra $2 billion (when compared to the hundreds of billions shoveled at the banks and Wall Street) were politically unstoppable.

The success of the program will give her some ammunition when Congress goes to repeat it with some more rational and logical fuel standards.