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Cash for Clunkers Takes Effect. Maybe. July 29, 2009

Posted by geoff in News.
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The Obama administration has started promoting their deals with the auto industry, trying to convince the public that they know what they’re doing:

In a speech on the economy, Obama defended the decision for the government to extend GM and Chrysler roughly $64 billion in direct aid and facilitate their bankruptcies this spring.

Obama’s comments in Raleigh, North Carolina, came as his administration released preliminary figures showing dealers sold more than 16,000 vehicles in the first days of a government-sponsored program aimed at spurring auto sales and lifting U.S. automakers financially.

So the Cash-for-Clunkers program seems to be moving some product. Does that mean that the administration is now firing on all cylinders? Not really – I don’t think anybody is surprised that if you subsidize auto purchases with a $1 billion pot of taxpayer money, sales will increase. The only question is: how cost-effective is this going to be? Edmunds has a guess:

Edmunds.com says that the $1 billion program will actually only add 50,000 new vehicle sales that might not have materialized if the Clunkers program wasn’t enacted.

$20,000/sale, though hopefully they won’t spend the entire $1 billion if they can’t use it (har).

Comments»

1. Edward Von Bear - July 29, 2009

If I get a car, it won’t be a GM or Chrysler.

Maybe a Toyota

2. geoff - July 29, 2009

Posting on this was a little premature until the real numbers come out next week, but I wanted to start robbing momentum from the administration’s latest campaign before it really gets going.

3. Dave in Texas - July 29, 2009

Try thinking of the names of baseball players. Helps you concentrate.

4. John Stansbury - July 29, 2009

You can subsidize horsedung all you want, it’ll still be horsedung. There was a reason people don’t buy cars: they don’t need one. Stupid Americans actually take care of their frigggin’ crap!

Not paper towels we’re talking about here. You don’t just buy them every couple of weeks.

I cannot believe this is happening. It’s like a sick joke.

5. Edward Von Bear - July 30, 2009

Obama was bragging today that he helped stopped the decline, and that slowing down contraction was just as good as a positive report.

Ugh

6. geoff - July 30, 2009

The other point that people are making is that Cash for Clunkers actually suppressed auto sales since it was initially announced back in late March/early April. Everyone was waiting to see what kind of deal they would get, so they put off buying their cars. The sudden surge in sales over the past few days is the result of that pent-up demand.

It is so typical of this administration to not comprehend the unintended consequences that go along with all their legislative proposals. In this case it should have been obvious – tell people that there’s a good deal happening in a few months, and they’ll wait until it happens. Meanwhile the car manufacturers are struggling since their sales are lower than they should be, so they’re more reliant on government support.

Another case of the administration making things worse than they have to be.

7. Snoop-Diggity-DANG-Dawg - July 30, 2009

The whole premise of cash-for-clunkers is that inefficient, polluting vehicles will be replaced by eco-friendly vehicles, thereby raining skittles & sunshine upon Mother Earth.

But what happens to all those clunkers when they’re exchanged? Do they go to the bone-yard, never to be driven again?

No, they go to resale auctions and are eventually purchased at great discount by folks with more modest purchasing power. Very soon they’re back on the road being just as efficient as they ever were.

Net result? Nothing has really changed.

8. Herr Morgenholz - July 30, 2009

$20,000 per sale? That’s OK. They’ll make it up on volume.

9. wiserbud - July 30, 2009

What a grand idea. Convince morons, who most likely own their clunkers outright, to go into even more debt at a time of economic turmoil and recession, but limit the program to such a minor amount so as to ensure that it will, in the long run, have an extremely minimal impact on sales.

Imagine how many more cars would have sold if they had just kept their hands out of the friggin’ economy altogether.

10. Cathy - July 30, 2009

My favorite is the JOBS created that lasted only 35 hours… 1 week.

…but they created JOBS!!! woo-hoo. Now what do those folks have?

11. Pupster - July 30, 2009

I have a friend who took advantage of this program, he traded in a junker he used to pull his boat that he might have got $500 for private sale. The dealer is required to purposely seize the engine to ensure the klunker does not get re-titled.

Another unintended consequence will be a shortage of low priced used cars. My friend is rather well off, he was thinking about donating the vehical.

12. lauraw - July 30, 2009

You can hardly understate the importance of cheap cars to large swaths of the US population.

This will create hardship for the working poor, especially, and make it yet more difficult for them to elevate themselves. This is going to backfire right in Obama’s core of support.

13. Edward Von Bear - July 30, 2009

^yeah, but they won’t care. They’ll just ask O-man for another handout.

14. lauraw - July 30, 2009

OVERSTATE. You can hardly overstate…

*smacks forehead*

I’m gonna go get a cream soda and stare at the wall for a while.

15. Dave in Texas - July 30, 2009

Don’t underdo it.

16. wiserbud - July 30, 2009

*pssst.

I heard that DiT wears Overroos.

Don’t tell anyone, ‘k?

17. Pupster - July 30, 2009

What’s the Under/Over on UM/OSU this year?

18. lauraw - July 30, 2009

I heard that DiT wears Overroos.

I overstand the need for secrecy.

19. Thomas Fuckin Jefferson - July 30, 2009

Free speech is underrated, but not underly so.

20. wiserbud - July 30, 2009

Free speech is underrated, but not underly so.

I think I underheard someone saying that very thing at the diner this morning.

Michael - July 30, 2009

I’ve come to the conclusion that Obama is an undertly dishonest politician.

21. wiserbud - July 30, 2009

One of the best vacations Mrs. Wiserbud and I ever had was in the great Down Over.

22. reason - July 30, 2009

I’d love to join in on this, but I feel a little under my head…

23. wiserbud - July 30, 2009

I drank an entire bottle of red wine last night, and then followed it up with a sic-pack of Corona. Bad ideas. I woke up totally hungunder this morning…

24. geoff - July 30, 2009

♪Under there! Under there! We will fight for the right under there! ♫

25. kevlarchick - July 30, 2009

Mr Kevlar only drives clunkers. I refer to them as Urban Blight when they are sitting in my driveway. So do the neighbors.

26. wiserbud - July 30, 2009

Hey, look over there!

Over where?

Hahaha. I made you say overwear.

/6 year old

27. wiserbud - July 30, 2009

Mr Kevlar only drives clunkers.

would he like some help in restoring them? I’m getting pretty good at it.

“pretty good” = “haven’t burned the garage down……yet.”

28. geoff - July 30, 2009

“pretty good” = “haven’t burned the garage down……yet.”

and “restoring them” = “leaving them on a street in NYC”

29. wiserbud - July 30, 2009

and “restoring them” = “leaving them on a street in NYC”

If only. Then at least I could get the insurance money for it.

$13.73. *cha-CHING!

30. wiserbud - July 30, 2009

How awesome would it be if I got that damn thing started in time to drive it to the September meet-up, only to have then have to beg a ride home when it breaks down on me?

31. lauraw - July 30, 2009

Yeah, that’s the kind of car you renew your AAA membership for.

32. Barack Obama - July 30, 2009

We cannot continue to sit, complacently, in these tired, failed vehicles of the past administration.

33. reason - July 30, 2009

“I drank an entire bottle of red wine last night, and then followed it up with a sic-pack of Corona. Bad ideas. I woke up totally hungunder this morning…”

While inebriated, did you call up any ex-girlfriends to tell them that you really miss them, and never could quite find a way to get under them?

34. kevlarchick - July 30, 2009

Restoring them? To what? How do you “restore” a 1991 Toyota pickup with duct tape as a fender?

Besides, the two of you would do nothing but drink beer, spit, cuss, track greasy hand and footprints thru my house, piss all over the toilet seat, and go on more beer runs.

35. Dave in Texas - July 30, 2009

>> How do you “restore” a 1991 Toyota pickup with duct tape as a fender?

Well, you need beer.

And more duct tape.

36. Dave in Texas - July 30, 2009

oops

37. reason - July 30, 2009

Regarding a ’91 Toyota pickup…you could always do this to it.
http://tinyurl.com/laloub

38. wiserbud - July 30, 2009

Besides, the two of you would do nothing but drink beer, spit, cuss, track greasy hand and footprints thru my house, piss all over the toilet seat, and go on more beer runs.

And….? That’s all part of the restoration process.

*rolls eyes

…girls.

39. Mrs. Peel - July 30, 2009

A sic-pack? That’s a great typo given the subject of the conservation.

(Sic.)

40. wiserbud - July 30, 2009

yeah, I hate that I can’t fix my typos here.

*koff

41. Dave in Texas - July 30, 2009

heh

42. wiserbud - July 30, 2009

heh

what, too subtle?

43. Dave in Texas - July 30, 2009

also heh

44. Michael - July 30, 2009

>>>Yeah, I hate that I can’t fix my typos here.

After one date with your smokin’ hot daughter, I can change that.

45. Dave in Texas - July 30, 2009

How come? You’ll be in prison for 15 years and need someone to look after the place?

46. wiserbud - July 30, 2009

After one date with your smokin’ hot daughter, I can change that.

So this how you were able to get the smoking hot Cathy to even glance in your direction?

niiiiiiice……

47. lauraw - July 30, 2009

*COUGHCOUGH14Y/OCOUGHCOUGH*

Oh.

‘scuse me

48. Michael - July 30, 2009

Sure, Laura, there are some legal issues I need to research. I get that. Right now I’m cracking the books, looking for the “25 from the neck down” loophole.

49. wiserbud - July 30, 2009

to be fair, she did just turn 15.

If she was related to Michael, I’m thinking they would already be hitched, him being the ig’nant backwoods redneck that he is.

50. Mrs. Peel - July 30, 2009

That is an insult to ignorant backwoods rednecks, sir!

*smacks you in the face with a glove*

51. Michael - July 30, 2009

If she was related to Michael, I’m thinking they would already be hitched, him being the ig’nant backwoods redneck that he is.

I’m not totally backwoods. She would have to be at least a first cousin or niece.

I’m serious. Marrying your sister, mother or daughter is just wrong.

52. wiserbud - July 30, 2009

*smacks you in the face with a glove*

Beg pardon, Ma’am.

I now see that being compared to Michael in any way is truly an insult of the most grievous sort. Please accept my most sincere apologies.

53. geoff - July 30, 2009

I’m serious. Marrying your sister, mother or daughter is just wrong.

Les’n you get ’em knocked up, a’course.

54. Mrs. Peel - July 30, 2009

Ah reckon Ah’ll fergive ya this time.

55. wiserbud - July 30, 2009

I’m serious. Marrying your sister, mother or daughter is just wrong.

Hey, iffin they ain’t good enough for their kin, then they ain’t good enough for me.

Michael - July 30, 2009

Les’n you get ‘em knocked up, a’course.

And you are surrounded by men with shotguns.

56. Dave in Texas - July 30, 2009

In Alabammy we calls that a “military weddin”.

57. wiserbud - July 30, 2009

Does y’all know how an Alabama mom knows when it’s her daughter’s time of the month?

58. Michael - July 30, 2009

In West Virginny we calls it “life.”

59. Michael - July 30, 2009

Does y’all know how an Alabama mom knows when it’s her daughter’s time of the month?

Yup, her husband fucks her. Duh.

60. wiserbud - July 30, 2009

Yup, her husband fucks her. Duh.

Nah, stupid. She can tell because her son’s dick tastes funny.

I flat out dare Michael to ban me for that.

61. Michael - July 30, 2009

I flat out dare Michael to ban me for that.

Nah. That joke, old as it may be, is funnier than anything you say at The Hostages. I’m flattered that you save your best material for IB.

62. wiserbud - July 30, 2009

That joke, old as it may be, is funnier than anything you say at The Hostages.

Heh. I guess we’re more alike than I thought.

{{{{shudder}}}}}

63. Michael - July 30, 2009

Your version of that joke really does ring a bell. I’m thinking now that I first heard it about 45 years ago at one of those all-night dirty joke marathons at a Boy Scout camp.

Of course, it wasn’t just dirty jokes that kept us up. There was the fart-lighting displays as well. It took some talent to get an impressive flame without burning yourself.

64. wiserbud - July 30, 2009

I’m thinking now that I first heard it about 45 years ago at one of those all-night dirty joke marathons at a Boy Scout camp.

Sounds about right. I didn’t say it was a new joke. But it was obviously new to Dave.

It’s probably the most offensive joke I know, that doesn’t include lawyers or priests.

65. wiserbud - July 30, 2009

Of course, it wasn’t just dirty jokes that kept us up. There was the fart-lighting displays as well.

..and the obligatory “private-time” with your Scout Masters, I’m sure.

66. Andrew Sullivan - July 31, 2009

“Les’n you get ‘em knocked up, a’course.”

*takes notes*

67. Andrew Sullivan - July 31, 2009

“Les’n you get ‘em knocked up, a’course.”

…go on…

68. lauraw - September 6, 2010

http://hotair.com/archives/2010/08/25/used-car-prices-skyrocket-a-year-after-cash-for-clunkers/

We have to start making a list of all the shit we on the Right were RIGHT about last year.

And shove it in their faces.

69. geoff - September 6, 2010

Nice catch, laura. If you look at the post, I was laughing about the dim prospect of the administration not spending the entire $1 billion. I didn’t think they’d throw in $2 billion more.

And we ended up spending $24,000/car (as opposed to the estimate of $20,000/car when this post first went up).

70. lauraw - September 6, 2010

Thanks geoff.

71. Michael - September 6, 2010

We have to start making a list of all the shit we on the Right were RIGHT about last year.

*scratches head*

How does this relate to Wiserbud’s daughter?


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