“CASH FOR CLUNKERS” PLAN

As he rolled out one last reprieve for the nation’s troubled automakers, President Obama also restarted a legislative push that ran out of gas during last month’s stimulus talks: a $10,000 rebate offer to car owners who traded in their old models for more fuel-efficient wheels.

The “cash for clunkers” plan was originally proposed by Sens. Dick Durbin (D-IL) and Tom Harkin (D-IA), at a total cost of about $16 billion. It was dropped from the stimulus amid GOP opposition, but Obama said today that he would “work with Congress to identify parts of the recovery act that could be trimmed to fund such a program and make it retroactive starting today.”

Sen. Charles Schumer (D-NY), who sponsored a $4,500 version of the “cash for clunkers” rebate alongside Sens. Dianne Feinstein (D-CA) and Olympia Snowe (R-ME), has just released a statement promising to work quickly on complying with the president’s request.

On the face of it, this sounds fantastic.  It would not only help to get old gas guzzling cars off the road which helps the environment and save on energy consumption.  It would also help the dying auto industry to stay afloat, and it would give the new owner a brand new car for a much cheaper price, saving them money on gas and with 5-10 year warranties to finish off the whole deal.

What Republican would vote no to this? Some did, as the report tells us, during the stimulus package negotiations.

What are the requirements to receive this rebate?  Last I heard one requirement would be that the car had to be made in the U.S..  What does that mean?  Parts are made all over the world, does it mean the whole car (parts and all) has to be made in the U.S., or does it mean the finished product has to be made in the U.S.?

As for a more fuel efficient car, what does that mean?  Will exchanging my 21mpg car for one that gets 27 be accepted or must I buy one that gives me 40mpg?

Also, the rebate itself, is that given at the time of purchase or after I’ve paid the car off?  If I buy a car that cost $158,000, will the rebate be deducted at that time, leaving me with only $5,000 to pay, or must I pay the $15,000 up front, then I would get the rebate?  This makes a difference if you have to buy a car on the payment plan which most citizens do, especially those with old clunkers like mine.

Must the car be of a certain price to be considered acceptable?

I need more details please – anybody?

However, if I can buy an $15,000 car for just $5,000 or even 10,500– I’m ready to seriously consider it.

HEY!! I just realized something.  This was an idea I gave to everybody back during when the stimulus package was being debated.  I said the government, instead of giving bailouts, should give gift cards or coupons to consumers to buy major products like cars, refrigerators, stoves, heating/air conditioners, etc…  I said it would get consumers buying again and help the companies they buy from, to stay afloat.  Wow, am I smart of what?  Don’t answer that…LOL!