Cash for Clunkers

[OldNo.7]

I saw some slant eye just about to cry on the news because he didnt get his hand out before the money ran out.

"not fell we not get our money for krunker"

[Blackflag]

and limited to Detroit, it is a PLUS move.

That makes sense, but in reality, the program focused on foreign companies - by the fuel economy requirements. Makes no sense.

[Big Train]

Yea, and I'm sure it is teaching a good lesson, as it wasn't "Cash for new V-8's".

Well, here are the numbers.

The Ticker - Ford July Sales Up 2.3%, Juiced by 'Cash For Clunkers;' GM Plunges 19.4%, Chrysler Down 9.4% - Economy Watch  

UPDATED at 3:10 p.m. with all the majors reporting:

Ford reported that July auto sales were up 2.3 percent compared to July 2008, the automaker's first monthly increase since November 2007.

And it's clear that Ford is the runaway winner so far in the government's "cash-for-clunkers" program: Even with a $4,500 government voucher, July sales of General Motors vehicles plunged 19.4 percent.

This is despite GM's lightning-fast bankruptcy reorganization, despite the White House's firing of former chief executive Rick Wagoner, despite paring its many brands down to four, despite continued good critical marks for the Chevy Malibu and GM's Cadillac products.

Chrysler reported what can only be counted as a stupendously winning month: July sales were down only 9 percent compared to July 2008 and were up 30 percent compared to June 2009.

Chrysler was by far the weakest of the Big Three; last year and early this, Chrysler sales were plunging 40 percent, 50 percent compared to 2008. To drop only 9 percent is a clear win.

Still, the GM drop was not quite as much as Wall Street expected.

George Pipas, sales analyst for Ford, said on CNBC a few moments ago that the automaker felt like it was going to "fall short" of last year's July sales levels until the government's stimulus kicked in.

"Cash for clunkers put us over the top," Pipas said.

Sales of Ford, General Motors and Chrysler vehicles accounted for 47 percent of all "cash-for-clunkers" sales through August 1, the Transportation Department said.

Ford said sales of its core brands -- Ford, Lincoln and Mercury -- rose by 9 percent. Dragging down the overall number to 2.3 percent was diminished fleet sales and other poor performing brands.

Other July automakers's reports:

-- Toyota, the world's largest automaker, reported a 10.8 percent drop in July compared to July 2008. However, July 2009 sales jumped 27.7 percent compared to June of this year.

-- Honda U.S. sales were down 17.3 percent. So far this year, Honda sales are down 30.7 percent.

-- Volkswagen said U.S. sales were up .7 percent. "It was not by accident that Volkswagen was able to perform so well in the government 'Cash-for-Clunkers' Program," Mark Barnes, VW's U.S. chief operating officer said in a statement.

-- Germany's Daimler AG said U.S. sales fell by 24 percent in July, as evidently not a lot of clunkers are being traded in for a new Mercedes Benz. Interestingly, sales of Daimler's little Smart car plunged 45 percent.

-- Subaru reported that its July sales jumped by 34 percent, as the Japanese maker fuel-sipping imports benefited from cash-for-clunkers. Subaru sells very few vehicles in the U.S.; July sales totaled only 21,839.

July Auto Sales Numbers Juiced by 'Cash For Clunkers'

10:45 a.m.: July auto sales numbers will come out from manufacturers one by one today, and Ford -- amazingly -- is saying that it will report its first monthly sales increase in two years.

Chrysler, too -- the weakest of the Big Three -- says it is poised to report positive news.

But don't get too excited: This is just another incidence of fake money offering a Red Bull jolt to an ailing economy.

July auto sales have been juiced by the government's "cash for clunkers" $4,500 credit toward buying a new car by trading in your (qualifying) jalopy. Yes, these are real sales for the automakers and yes, there are real downstream benefits (parts makers and so on) but this does not represent the organic sales that come in a healthy economy.

This program has been so successful it burned through its initial amount of money and the Senate is poised to vote today to announce an additional $2 billion to the program.

The question is: What happens when "cash for clunkers" finally ends?

[bueno bob]

Glad I paid taxes to help your buddy get a deal on a car. Dick. Meanwhile I can't afford a skateboard let alone a nice new GM shitbox..

Who's fucking fault is that?

Maybe you need a better fucking job if you can't afford a fucking skateboard.

On top of that, YOU didn't pay any more in taxes to "help my buddy" than what HE did, so you can shove that argument right back up your ass where it belongs.

EVERYBODY pays taxes, not just YOU.

Well, unless you're a fucking church and exempt from such shit based on an ideal, but I digress...

[lesfunk]

you're mean

[Guitar Shark]

Calm yourself, focus on the issue at hand and give me a reasoned, intelligent, fact based response. That's all I'm looking for.

Good luck with that.

[bueno bob]

you're mean

I am bueno bob...

[thome]

The next stimulus has just been drafted by Obama,"Cash for your Clunker Guns".

First they want our ability to be independent, then they want our ability to defend it.

Let the Socialism begin.

[Dr. Love]

Cash for clunkers...

Listen...the $4500 you are supposedly getting is money that each of us has already paid to the Government...

Then, they send these care to China and elsewhere (which effects our steel industry) and they turn them into more crap to sell back to us...

Also, the majority of these "clunkers" are most likely very usably cars that many Americans want and depend on...

It's a lose lose situation anyway you look at it...


So, how many strikes is that for Obama ??

I think he's finished...

So that's what FORD would be like if he were hard-right and couldn't type at all.

huh.

[twonabomber]

Glad I paid taxes to help your buddy get a deal on a car. Dick. Meanwhile I can't afford a skateboard let alone a nice new GM shitbox..

buy another bass lately? :D

of course you can probably write those off, huh?

[bueno bob]

The next stimulus has just been drafted by Obama,"Cash for your Clunker Guns".

Who told you that? Bill O'Reilly?

First they want our ability to be independent, then they want our ability to defend it.

Glenn Beck?

Let the Socialism begin.

I find it offensive that people call this "socialism". That's a Fox News talking point and it should be treated as equally relevant and important as, well, anything else they espouse.

Obama's far too moderate to be a true socialist.

[thome]

Harley Davidson has been offering a deal for over 10 months .

If you trade in your 07 or 08 Sportster you will get full factory $7999.00 FULL towards a larger more expensive bike.

If you want to take your 4500 $ clunker and go get a new payment added to your monthly nut go for it, dork.

The Harley deal is no bullsh!t. If you want a larger bike now is the time. It still means nothing more than a payment by YOU!



If you want to take your paid off clunker and go get a monthly $200.00 + increase in your debt for the next 6 years LOL do it ...LO fikkin...L.

In times of questionable income potentials and you are taking a risk that you will default in these times, and then you loose your credit and your new Caddy, slick rick!

Anyone has the freedom to make a bad decision, and it is nice that our president Mr. Obama wants you... his people... to do that, instead of saving and being warry.
If you are for this you are probably a car dealer.

[sadaist]

Dude, no. My next door neighbor did it, traded in a gas swallowing hog that was costing him more to keep on the road than it EVER should.

Cool. Tell your neighbor he's welcome. Since the money I work every day for helped pay for his new car. Funny, two years ago when I bought my truck no one was offering me assistance. So I paid for all of my car, and a portion of everyone who waited until now to buy a car under this program. Sounds fair.

I've driven crap vehicles before. I sacrificed and saved. Passed on concerts, restaurants, bowling, hell...anything to stash another $20 into the auto fund.

When will the program to help people buy more energy efficient appliances start? I need a new refrigerator and I want you guys to help me pay for it. I'd save on my own, but there's some new dvd's I want to buy. Thanks in advance.

[bueno bob]

If you want to take your 4500 $ clunker and go get a new payment added to your monthly nut go for it, dork...
If you want to take your paid off clunker and go get a monthly $200.00 + increase in your debt for the next 6 years LOL do it ...LO fikkin...L.

Well, I'm not doing it myself. My car is reliable and right now I have no need of another newer one (I do have a used Mazda that would qualify, but my primary vehicle is fine).

As far as new monthly payments are concerned, there's an angle to this that most naysayers are just simply overlooking:

A new car payment is not always that much. Depending on the condition of your older car, how much gas and oil it chugs and how much upkeep you need to make sure it keeps on the road, a car payment can actually be a better investment than the guessing game with your old vehicle. The last time I needed a major car repair, I was set back $1150.00. $1150.00 all at once just to maintain a job/income/life can be EXTREMELY detrimental to a working family of limited means. I mean, we're talking a complete CRASH of your life. Loss of transportation = loss of job = loss of income = regional city government assistance just to stay alive, eat food and keep the heat turned on, at least until A) the car can be fixed or B) other (more local) employment is gained and the family can get back on their feet. The loss of security caused by the loss of a vehicle, sometimes resulting in the loss of employment, can be EXTREMELY damaging to any family.

Cash for clunkers not only gives struggling families an alternative to running the risk of the above, assisting to keep employment (and thereby keep people off of public assistance), it also creates an environment where people are INTERESTED in purchasing vehicles again, which directly benefits (you got it) the auto industry, and therefore the American economy at large. It also helps by getting vehicles not good for road use and poor performing in emissions off of the road, which helps the environment as well.

This is a win/win for EVERYBODY.

Anyone has the freedom to make a bad decision, and it is nice that our president Mr. Obama wants you... his people... to do that, instead of saving and being wary.

Thome, most of the people taking this offer can't afford the necessary repairs to their vehicle and can't afford to save money anyway. As I've demonstrated, in many cases a monthly payment on a RELIABLE vehicle trumps "being wary" and hoping for the best. ESPECIALLY when the livelihood of ANY family depends on reliable transportation.

If you are for this you are probably a car dealer.

Nope, just a realist who doesn't buy the bullshit that Fox News spews.

[sadaist]

And it's amazing how the government program ran out of money only 8% into the scheduled time for this. Can't wait for them to be running my health care. Should be smooth sailing.