Michelle Malkin » Cash for clunkers junked…but dealer ads still running; Feds try to salvage

Cash for clunkers junked…but dealer ads still running; Feds try to salvage

By Michelle Malkin • July 30, 2009 08:57 PM

Scroll for updates…

The feds are shocked that people flocked to take advantage of easy money. Whodathunk?!

The government is suspending the explosively popular ‘cash for clunkers’ program at midnight tonight fearing it would go broke before it could parcel out what it still owes dealers for a huge backlog of sales.

The pending suspension was confirmed by Bailey Wood, legislative director for the National Automobile Dealers Association (NADA), which had been called Thursday night by the National Highway Traffic Safety Administration, which administers the program. Rep. Candice Miller, R-Mich., confirmed as well, saying she had been told by congressional leaders.

“Obviously the program has been an immense success in stimulating automotive sales,” Wood said.

“The thing has exploded. It has exceeded everyone’s expectations,” said Miller, who was involved in writing the original legislation, known as CARS, for Car Allowance Rebate System. “Throughout our history, it has been auto sales that have pulled us out of recession. People are more likely to buy cars than houses. Not to be too Pollyannaish, but we’re gettin’ our mojo back. This could be the pivot” that begins an economic recovery.

As of late Thursday, the government had committed roughly $850 million of the program’s $1 billion, according to calculations by NADA and various congressional offices. It’s unclear whether and how the CARS program could be restarted.

Good thing they junked it. Alan Reynolds at Cato explains how easy it was to use “Cash for Clunkers” to buy a gas-guzzler.

Good riddance to Fraud on Wheels.

***

Update: Watching L.A. Ink tonight (I’m in hotel decompressing from the book tour), I’ve already counted 4 ads touting Cash for Clunkers.

Oops.

***

Update: Feds are trying to salvage the clunker clunker.

Posted in: Enviro-nitwits

Printer Friendly

comments (80)

trackbacks (29)

See what others have said

Note from Michelle: This section is for comments from michellemalkin.com's community of registered readers. Please don't assume that I agree with or endorse any particular comment just because I let it stand. A reminder: Anyone who fails to comply with my terms of use may lose his or her posting privilege.

Trackbacks

Trackback URL

Comments

« Older Comments

#761865

On July 31st, 2009 at 5:49 pm, conservativesRus said:

On July 31st, 2009 at 1:10 pm, thetoysurgeon said:

Hey – did I miss the memo – that “somebody” annointed you the decider of what kind of car I should drive?
If you choose my car, do I get to choose something else for you?

I don’t really give a rip if your car gets 500 miles per gallon – as I said, my bicycle does better. And don’t give me the garbage about how you “have” to commute so far – you COULD move closer and bike same as me – but you choose not to.
You made your choice, we’re happy for you. Now please allow the rest of us the liberty to choose to drive what we want.
Lastly – I’ll comment on the economic wisdom of your purchase. Without government incentives already, I’m pretty sure you would have to get those vehicles to well over 250,000 miles before you actually experience a single cent real payback. I have yet to receive a thank you from any hybrid purchaser. Bunch of ingrates.
#761944

On July 31st, 2009 at 7:02 pm, NC BLUE said:

Hey toysurgeon—3 accidents–congrats. You will now pay more for auto insurance, thus offsetting your gas savings. I’m with conservativesRus–drive a damn yogo if you want, but leave the rest of us alone. Capiche!!
#762558

On August 1st, 2009 at 5:31 pm, corkie said:

On July 31st, 2009 at 1:10 pm, thetoysurgeon said:

Nobody should buy antiquated hybrid drive technology.

Consumers should only buy direct drive electric vehicles.