Hemmings Motor News Blog

Thanks for the update, dstrohl. I'm an owner of one those potential future collectibles, so I wanted to disclose that fact upfront. Then there are two other issues with this law that I'd like the share.

First, Cash for Clunkers doesn't require the purchase of an American or American-built car. Yet the tax benefit comes right out of the U.S. Treasury. So, as I understand it, some American consumers will wind up subsidizing foreign automakers at our own government's expense.

Second, Cash for Clunkers requires only the purchase of a new car that gets better than 19 mph. So, I can trade in my 18-mpg gas guzzler for a 20-mpg rig that gets a measly 2 more miles per gallon. But the guy who trades in his 18-mph jalopy for a 35-mph hybrid gets the same benefit.

Hardly seems fair.

I can't seem to find anything as to how this impacts future collectibles. Can you explain this?

I am in the same boat. I have a 2004 that only 750 were imported for North America. Obviously, that puts this car in a unique category.

what year make and model of car do you have that only 750 were imported to the U.S.?

2004 GT3 Porsche, which is the first generation GT3 available in the US.

The web site covers the bill as approved.

http://www.cars.gov/files/CARS-Law.pdf

The program only has a four month life span . Using FTC data, average cost of a new car is $28,400 (http://www.ftc.gov/bcp/edu/pubs/consumer/autos/aut11.shtm). This program could yield around 33-35k units in new car sales. Math works out like this it is a 1 billion dollar slush fund and up to 50 million is authorized for administers expense (20%) just divided into the difference. Some how I don't see these numbers really having that much impact on monthly sales but whats a billion dollars between friends.

If you think some one has your Shelby of the future just pony up the $4,500 and buy it up front all they get at the dealer is scrap value for a trade in.

Wrong math and wrong numbers here my apologies. Program may have the potential to boost sales in the 200,000 plus range if all the money gets burned through.

Another way to think of this is that American cars are overpriced by $4,500 each.

Not a pretty thought.

I asked if I could turn in a 7mpg suburban toward a new motorcycle getting 50mpg. Of course this is not allowed. Seems like a miss to me.

I have several clunkers but I don't need any new soon to be clunkers in return.

I'd be willing to sell a few clunkers for about $1200 and let the new owners use them in the cash for clunkers program though.

Waaay back in the early nineteen nineties a similar program was used to harvest steel. Turn in your old junker for cash $750, driven or dragged to the dealer. The steel was used as a vehicle (pun intended) in a process of leeching gold from mine tailings.

Another program tailored to those suffering from mind recession...

What I expect will happen with the "cash for clunkers" is that dealers will offset what they give for trade in value for the voucher. The net effect will be that the dealer actually gets the cash benefit, not the consumer. This will also drive the value of clunkers down and remove even more net worth from the already starving average American citizen.

Yet another fraud waste and abuse ploy for the government.

My wife works for a car dealer. This will not be on top of any discounts provided by the manufacturer or dealer. Maybe you'll be saving a little $ at the gas pump but not at the dealer. These days dealer & manufacturers are giving great deals already. Problem is people don't have the credit or the cash to buy.

Also look at how few cars will actually get he rating needed to get the DEAL. The combined rating on most junkers is still over 18 mpg. I consider my 01 Cavalier,(200k+ miles), a Clunker but the combined mpg rating is 26 mpg. Which is about what I truley get on a normal week so that rating isn't off.

Its one of those feel good bills passed by Congress that makes them look like they are trying to give the little guy a break but really aren't.

I agree with you. It's Congress's way to look good and Obama. Dealerships will add on to the price of a new car, making it look like you are getting the rebate and a good deal but in the end the dealership is not losing the $4500 off the price of the new car. We have a real clunker--1982 Ford Bronco-- it is insured and still runs great but eats up 10mpg. We do not qualify for this program. Which I think is unfair. All of us "little guys" could really use a break in trying to buy a new car.

I have an 89 suburban that is rated for $4500. I will sell it for $2500 to anyone that needs some discounts. It runs but I don't drive it because it gets 7mpg. It used to go anywhere I could afford to take it.