Cash for Clunkers Success

[Danzig]

Originally Posted by JJP

Guess what vehicles are still eligible to be bought in this program? Yukons, Hummers and Suburbans. So much for less gas being used.

The real problem with this program is that its just taking away sales that figured to happen 6 months or a year or two down the line. So we'll see a short term jump in auto sales but in 2010 they will fall again. Right in time for us to re-enter a recessionary period again.

i thought they had to have a fairly high mpg?

[SCUDSBROTHER]

Originally Posted by Danzig

i thought they had to have a fairly high mpg?

If they want to get $4500 off a Hummer, then they have to trade in something that gets worse mpg than a Hummer gets. That's important.

Even if you have something as bad on gas as a Hummer, the model of Hummer you could buy has to cost less than 45k. Why would you want 10% off ($4500 of 45k) of something when you can get 20-25% off of a car that costs 18-25k? You can see the list Dell put up. They trading in big trucks n' SUVs, but buying 25 mpg cars(not Hummers.) They probably allow people to trade in something big(poor mpg) to buy something big (only a little tiny improvement in mpg) because it allows people a lot of freedom to do what they want, but all the incentives are naturally encouraging them to buy something smaller. You want to pay 40k for a lousy Hummer model, or pay 15-20k for a 20-25k priced car? It's your choice, but only if you've got something from the 90's as bad on gas as a Hummer. People aren't gunna be able to trade a '99 Monte Carlo in for a $4500 voucher towards a Hummer. They have to buy something 10 mpg better than the Monte Carlo (if they want the $4500.)