Michelle Malkin » Cash for Clunkers, R.I.P.

Cash for Clunkers, R.I.P. – for now

By Michelle Malkin • August 20, 2009 11:01 AM

What a disaster.

A disaster from which Washington will learn absolutely nothing:

Transportation Secretary Ray LaHood assured car dealers Wednesday that they will be reimbursed for sales made under the cash-for-clunkers program and said the department would soon offer plans to wind down the popular car incentives.

LaHood said the department will announce by Friday how it intends to discontinue the program that offers car buyers rebates of $3,500 to $4,500 for trading in older vehicles and buying new, more fuel-efficient models. Department officials met with car dealer trade groups Wednesday to discuss complaints over a backlog of rebate payments to dealers and how the program will eventually end.

“I know dealers are frustrated. They’re going to get their money,” LaHood told news reporters.

And where is the money coming from? Y-O-U. GM is providing cash advances to dealers waiting for their C4C reimbursements. Via Autoblog:

According to GM, that should give each dealer enough liquidity to keep operating while waiting for the government to cut a check.

Of course, since GM accepted billions of dollars in federal loans to avoid bankruptcy and then, after entering Chapter 11 bankruptcy anyway, emerged as partly owned by the U.S. government, the money’s really all coming from the place. It just seems that GM has a better accounting department than the U.S. Treasury.

And this is how the government defines “success.”

Cash for Clunkers may be ending — for now. But I guarantee you, the architects of this auto entitlement subsidy will be back. The redistributionist impulse is incurable.

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#101

On August 21st, 2009 at 5:12 am, Danceswithdachshunds said:

24Klady said: … If our gubmint actually OBEYED our Consitution, every citizen/taxpayer would have ~~has~~ an equal right to benefits from the gubmint….

fixed
#102

On August 21st, 2009 at 10:26 am, SHoward said:

I think they call this the law of un-intended consequences.
#103

On August 21st, 2009 at 10:53 am, DBNinKY said:

On August 20th, 2009 at 11:45 am, Red State Skeptic said:

What I secretly like best about CFC is the glut of “clunkers” I want to own that are now on the used car market.

Huh? The engines have been permanently locked tight with a silicone hardener.
#104

On August 24th, 2009 at 8:30 am, ArizonaNeanderthal said:

Yes The engines have been permanently locked tight with silicone hardener and the cars are being crushed. This not only removes the cars themselves from the market but their parts. Removing those parts will make it harder and more expensive to keep and older car running.Elitist arrogance run wild-”take the bus you proletariat fool”. Of course if you do not live in a densely populated city center you can walk or take a bike miles to and from work– you are but the proletariat riff raff.

This Tuesday the Auto Industry reports comes out-we shall see how they are doing. With Cash for Clunkers ending and the cost of used cars up I am expecting a crash. With Cash for Clunkers quite a few people gave up their cars for less than market value and often paid full Window Sticker less pure fluff “Dealer Incentives” for the new car.

If you have to sell a decent running older car try CraigsList.com or the AutoTrader.com. You will do better.
#105

On August 24th, 2009 at 10:04 am, Danceswithdachshunds said:

FYI – “Silicone”, even if it is part of the solution put into the engine, is not an abrasive and has nothing to do with destroying the engine. The abrasive and binding agent is sodium silicate that seizes up all lubricated sliding surfaces like crank bearings and cylinder walls, etc.

WSJ article