Cash For Clunkers - This is what happens.

[Philly]

they're gonna end up eliminating every used vehicle that costs under 20-25 thousand dollars at this rate. I'd rather see 4500 cash for JUNKERS, which actually DESERVE to be scarapped, not these poor buggers that get tossed (as per american habit) the minute a fuse blows!
this is a repeat of what they tried back in 91 (and loudly lamented in Hot Rod), but there was no "cash incentive" then.

Probably not. Here's why:

Cars that are worth more than $4500 are not likely to be scrapped. People who do scrap cars worth that much are dumb enough to be pretty few and far between.
Cars that get over 18mpg EPA are not eligible, so a lot of cars under $4500 will still be alive.
The cars that would be worth more than $4500 (say that S80) are probably suffering from major problems to the point that scrapping in the program is the most economical solution.
You'll still see a lot of people with a potential "clunker" that won't be able to afford the payments on a new car, even with the government helping them out.

I think we'll see it having an effect on the cheap end of the used car market, but I don't think it'll be a disaster that creates a widespread shortage of cars that people need.

 

[Sniffs]

that'll still eliminate every SUV and Pickup that isn't an 09 at least, and in an area where that's absolutely NECESSARY because of idiotic or lazy DOT's and Townships, like here...

i have two right now, including the one I'm driving (though I do manage to squeeze low 19's out of it), but since the money only applies towards the purchase of a NEW vehicle, that eliminates it. you know what kind of decent 95 I could get for 4500 bucks? i passed up a 4000 dollar 03 because it was a stick (nobody over age fifty around here wants to risk their stick for fear of a "noob" destroying their tranny). if these guys would hand over cash instead of automatically putting it twoard a new...

btw, hope it cooled off up there. WE got all the rain you guys usually do.

 

[Philly]

I'm sure some of those economy cars that didn't qualify would still be fine on most roads. Especially if it's something you don't really care about. Last weekend we went "four wheeling" in the GTI, and even that did just fine on some really nasty dirt paths.

But if you really do need an SUV, there are still some to be found. You'll have to put a little more work into finding one and be more aggressive when it shows up, but they will still be around. I found a bunch for under $4500 on Seattle's Craigslist listed today, and it's still relatively early in the day.

And it's not blistering hot here anymore. Still warm, but still not totally normal for the season. Oh well.

 

[YSSMAN]

FYI: Best Selling C4C Vehicle is the Ford Focus, Roughly Half of Sales are Domestic

The National Highway Traffic Safety Administration has processed 80,500 transactions so far, and the early winner of Cash For Clunkers appears to be the Ford Focus. The Detroit News is reporting that the Focus is the number one vehicle purchased under the government program, showing us why Ford's C-Segment vehicle gained 43.6% in July. Ford also saw an amazing 97% increase in Escape sales in July, a tally that was likely improved with the help of Cash For Clunkers.

The controversial and somewhat clumsy program is drawing plenty of attention for its popularity amongst car buyers, and Detroit automakers appear to be taking more than their fair share of sales. The White House says 47% of all vehicles sold through the bill so far come from US automakers; 2% higher than the domestics' 45% overall share. Four of the top 10 vehicles purchased under the program come from domestic automakers, and over half of all vehicles were built in the States.

With so many orders in the cue, the Cash For Clunkers program will likely have to be pulled by Friday if more money isn't appropriated. The House voted last week to add another $2 billion to the initiative's coffers, and the Senate will vote on the measure on Wednesday or Thursday.

To drum up support for more dollars, the White House is touting the program's value. White House spokesman Robert Gibbs says the average fuel economy increase so far is 9.4 mpg; a 61% increase verses the vehicles destined for a sodium silicate bath. So far, 83% of the vehicles traded in have been trucks, while 60% of the vehicles purchased under the program have been cars. The White House estimates that Cash For Clunkers will save the average car buyer $700 - $1,000 in gas prices during the life of the vehicle.

 

[Jim Prower]

Y'know, that car HAS been growing on me. 'specially the SES Coupe.

 

[YSSMAN]

I still don't think I'd buy one, but its definately worth a look for anyone who is in the market for a cheap, high-MPG vehicle. Well, the SES and the (Cobalt) XFE.

 

[JCE]

Its quite obvious the Focus would be the big winner here, you'd almost HAVE to get one to get the best C4C rebate. As its the most fuel efficient car minus the Fusion Hybrid--which is not cheap.

Y'know, that car HAS been growing on me. 'specially the SES Coupe.

+1 The SES coupe with some decent wheels is a decent looking car.

^ I'd drive that for the daily grind.

 

[Adamgp]

Ironically we are good friends with 2 families that work for or own Ford dealerships ant they hate the CFC program with a passion.

 

[JCE]

Ironically we are good friends with 2 families that work for or own Ford dealerships ant they hate the CFC program with a passion.

Ironically my Ford dealer has nearly quadrupled its sales since the C4C program got started and they love it with a passion. I'm skeptical about your statement. Our local dealerships her in the DFW metroplex (which is quite a large region) absolutely love the program. The sales numbers are through the roof.

 

[Perfect Balance]

Maybe it's because so much of the cars being destroyed are Fords.

 

[Omnis]

Ford is selling cars because they're not complete crap. Hyundai has also had a record quarter and year. Hyundai Korea's already made 850 billion won.

 

[Perfect Balance]

Ford is selling cars because they're not complete crap. Hyundai has also had a record quarter and year. Hyundai Korea's already made 850 billion won.

Pretty much. We've just stocked up on new Sonatas, most new cars at once I've seen since I've been working there.

 

[Philly]

The top car may be a Ford, but I looked at the list and spots 2-5 or something are all Hondas and Toyotas.

And 8 out of 10 spots are all Explorers on the "getting scrapped the most" list.

 

[niky]

Interestingly... despite C4C... Aveo sales have dropped... yet again.

 

[Northstar]

It would help if it wasn't super ugly. I would probably consider every other compact before I even thought about considering an Aveo.

 

[a6m5]

Ironically we are good friends with 2 families that work for or own Ford dealerships ant they hate the CFC program with a passion.

Ironically my Ford dealer has nearly quadrupled its sales since the C4C program got started and they love it with a passion. I'm skeptical about your statement. Our local dealerships her in the DFW metroplex (which is quite a large region) absolutely love the program. The sales numbers are through the roof.

I haven't heard anything from my dealer, but I know they haven't been paid by the program yet. While I'm sure they welcome the program, they are not completely worry-free.

Ford is selling cars because they're not complete crap.

When Ford declined the government money(loan), they gained an unbelievable amount of rep in this country. Also, little do people know that while it was 50%(highly scientific) smart move on Ford's part that put them in a pretty decent financial situation(considering ), the other half was just "lucky" timing. Ford happened to be downsizing, just before the economic crisis hit. I know that some of you are very familiar with this, as we've had discussion about Mulally, Ford vehicle shuffles, and plant closures on gtplanet before.

By turning the loan down, Ford now has a image of being successful, righteous, smart, patriotic, and whole bunch of other good stuff. Also gave many Americans an illusion of even if GM & Chrysler could go down, Ford will survive. Awesome, awesome PR. 👍

 

[YSSMAN]

The top car may be a Ford, but I looked at the list and spots 2-5 or something are all Hondas and Toyotas.

Well, that makes sense (unfortunately). Still, to have the Americans essentially taking up 50% of all the sales, I'd call that a success on their behalf. Its just odd that a kazillion year old Ford is dominating the list.

 

[Adamgp]

I haven't heard anything from my dealer, but I know they haven't been paid by the program yet. While I'm sure they welcome the program, they are not completely worry-free.


When Ford declined the government money(loan), they gained an unbelievable amount of rep in this country. Also, little do people know that while it was 50%(highly scientific) smart move on Ford's part that put them in a pretty decent financial situation(considering ), the other half was just "lucky" timing. Ford happened to be downsizing, just before the economic crisis hit. I know that some of you are very familiar with this, as we've had discussion about Mulally, Ford vehicle shuffles, and plant closures on gtplanet before.

By turning the loan down, Ford now has a image of being successful, righteous, smart, patriotic, and whole bunch of other good stuff. Also gave many Americans an illusion of even if GM & Chrysler could go down, Ford will survive. Awesome, awesome PR. 👍

They are still waiting to get paid for the program, for one. 2, while their new car sales are up mainly because of a few models, (Focuseses, Fusion & Escape Hybrids), used car sales are way down. They also ordered to destroy perfectly good trade-ins that they could profit on.

Philly
The top car may be a Ford, but I looked at the list and spots 2-5 or something are all Hondas and Toyotas.

Not suprising. Obama has stated over and over again that American auto makers cant match the Japanese and Europeans when it comes to gas mileage. (another Obama lie) So naturally people flock to Honda and Toyota dealers. You'd think being the new owner of GM and Chrysler he would try harder to get people to buy them.

 

[Sniffs]

Craiglist has a rep about as thick as Ebay, minivans and Station Wagons. for crap.

I've been out early mornings about 4-5 AM. they've had a foot of snow accumulate on the roads in 6 hours, and the blow boys won't be out till at least 8 AM unless there's a school delay (then they'll be out at nine), and the first thing they do is plow out the Interstate. around here in the winter you need that 6-8 inches of ride hight, gigantic knobby tires, and 400 lbs of torque just to clear the three foot hump of ice the township just plowed in front of your driveway. and this is in the EAST, where it doesn't snow 6 feet in an hour and stay at 20 below on a hot winter day
(hope all that snow cooled off the roasters )

Niky: Aveo sales would pick up in the US if they got rid of the hatch. i think there's a perception that all hatches are Pintos or something.

JCE: we all know by now the only reason ford saved its own butt is because they kicked the fords OUT of the company for the most part allready. otherwise...

 

[Omnis]

I read that Ford would be looking at something like 200 billion in losses if they hadn't restructured. Shame the government wanted to baby GM into thinking they didn't need to do the same thing. What a fantastic idea that turned out to be...

 

[YSSMAN]

Jalopnik has the Trade-In List Available:


Ten Most Traded-In Vehicles
1. 1998 Ford Explorer (14-17 mpg)
2. 1997 Ford Explorer (14-18 mpg)
3. 1996 Ford Explorer (14-18 mpg)
4. 1999 Ford Explorer (14-18 mpg)
5. Jeep Grand Cherokee
6. Jeep Cherokee
7. 1995 Ford Explorer (15-18 mpg)
8. 1994 Ford Explorer (15-18 mpg)
9. 1997 Ford Windstar (18 mpg)
10. 1999 Dodge Caravan (16-18 mpg)


Ten Most-Purchased Vehicles
1. Ford Focus (27-28 mpg)
2. Honda Civic (24-42 mpg)
3. Toyota Corolla (25-30 mpg)
4. Toyota Prius (46 mpg)
5. Ford Escape (20-32 mpg)
6. Toyota Camry (23-34 mpg)
7. Dodge Caliber (22-27 mpg)
8. Hyundai Elantra (26-28 mpg)
9. Honda Fit (29-31 mpg)
10. Chevy Cobalt (25-30 mpg



Wow. Those extra rebates really did make people want to buy a Caliber. Gross.

 

[a6m5]

Niky: Aveo sales would pick up in the US if they got rid of the hatch. i think there's a perception that all hatches are Pintos or something.

I highly doubt that. There are plenty of mega-selling hatches in the States.

JCE: we all know by now the only reason ford saved its own butt is because they kicked the fords OUT of the company for the most part allready. otherwise...

I read that Ford would be looking at something like 200 billion in losses if they hadn't restructured. Shame the government wanted to baby GM into thinking they didn't need to do the same thing. What a fantastic idea that turned out to be...

Government sure made plenty of harsh criticism at the General Motors, even firing their head honcho. I haven't been paying attention to the GM at all. Are they making the drastic and painful changes needed to turn that company around?

 

[Eric.]

Haha, wonderful. People are saving $700-1000 in fuel and instead putting that into car payments.

Also, that 24-42mpg figure for the Civic is covering the entire lineup. 24mpg city for an Si, 42mpg highway for a hybrid... The standard Civic is rated for something like 28-37 maybe. All of those being very pessimistic numbers.

 

[ROAD_DOGG33J]

Prius? Damn hippies...

Hmm...Caliber outsold the Cobalt

 

[stumpydino]

Ten Most Traded-In Vehicles
1. 1998 Ford Explorer (14-17 mpg)
2. 1997 Ford Explorer (14-18 mpg)
3. 1996 Ford Explorer (14-18 mpg)
4. 1999 Ford Explorer (14-18 mpg)
5. Jeep Grand Cherokee
6. Jeep Cherokee
7. 1995 Ford Explorer (15-18 mpg)
8. 1994 Ford Explorer (15-18 mpg)
9. 1997 Ford Windstar (18 mpg)
10. 1999 Dodge Caravan (16-18 mpg)

not bothered by that list at all lol
was the explorer such a popular car? or is it just in the right budget and terribly bad now that owners find the trade suitable to have once afforded it and be able to afford payments on a new car?

i hope those trading in jeeps got land rovers

 

[Adamgp]

The Ford Explorer was the best selling SUV for a long time. (1992-2008ish) So there are tons on the road.

 

[YSSMAN]

I haven't been paying attention to the GM at all. Are they making the drastic and painful changes needed to turn that company around?

They're closing a bunch of plants, getting rid of a lot of white collar workers, "downgrading" some workers back to line work, etc. General Motors Company is still arguably too large to be totally sustainable, but as more and more of Liquidation Motors is sold off, the better things should be.

Also, it would help if the new cars were here, like, yesterday.

 

[Sniffs]

there's six tons of those 95 body explorers floating around. they really DO do 15 per...with the 4 liter.

how are people getting no more than 18 out of a Cherokee? thanks to someone with a tuner's brain, when I bum a 97 Sport with the HO 4 liter, I get a minimum of 22.

A6: SHOW me a TRUE hatchback, not a crossover or a faking wagon.

 

[Joey D]

A6: SHOW me a TRUE hatchback, not a crossover or a faking wagon.

I don't know, I drive one. There is also the VW Golf, Volvo C30, Dodge Caliber, Mazda 3, Audi A3, etc.

You can actually find the list of all of them here:
http://en.wikipedia.org/wiki/Category:Hatchbacks

 

[NISM0_SKYLINE]

My local dealership, I'm guessing thats why these are here, theres more now.