We knew the Cash for Clunkers program wasn't perfect from the beginning, but one particular section caught our attention more than others. Section 1302, subsection (b), item 1, sub-paragraph D was its official name.
Read through the legalese and it basically allowed truck owners to trade in their clunkers for new trucks even if the newer vehicle didn't necessarily get better mileage than the trade in.
Green Car Advisor has been following the issue for some time and weighed in on the matter today with a detailed analysis. It didn't exactly call the program a total farce, but it does make you wonder how well it was planned.
GCA: Clunker Program Allowed Some Truck Trades for Less Efficient Vehicles
the_big_al says:
05:57 PM, 11/ 5/09
If you really think about it though, MPG shouldn't have been the only factor in determining whether or not a car qualified for the C4C program. That is where I think the C4C really fell flat. I mean if you had a 1984 250K F-150 that supposedly got 16 MPG and you traded it in and got 3500 towards a new F-150 that got 16 MPG, I still think you did some good for the environment. If you look at the fact that not only is that 2009 F-150 going to be cleaner burning of every one of the 16 MPG, it in reality is probably getting better mileage than that 1984 250k truck. It may have once gotten 16 MPG but with 250K on it how much is it really getting?? The C4C program was way too limited in my opinion.
estreka says:
10:04 PM, 11/ 5/09
Buying a brand new car for any "green" purpose is a farce. It's like throwing away a perfectly good computer monitor for another one that's 1" bigger; or throwing away a half-eaten hamburger in exchange for a tofu burger. The damage is already done. This is especially true when you're talking about a hybrid which has a HUGE GHG footprint.
Economically, C4C, in my view, was a success. It provided a quick shot of adrenaline for automakers (though, for some reason, many automakers have viewed that growth as sustainable). Despite that, the influx of cash will help automakers keep jobs and continue R&D. Flicmod will tell ya different, but that's ok. ;-)
flicmod says:
09:41 AM, 11/ 6/09
LOL. Thanks for the shoutout, estreka. I was just thinking about how I haven't commented in awhile, and whether or not I was missed. At least I know you missed me ;-)
Meh, I don't really have the energy to respond with an elaborate answer, so I'll just say that the growth is artificial. Just like the bank bailouts. The market has been growing over the last few months, but it's primarily due to the injection of new money into the economy. Unfortunately, it's absolutely unsustainable and, in my opinion, will lead to a 'double dip' in the next six months to a year.
Bottom line is that people should be saving right now. Prices will come down because of it, production will be reset and adjusted to those best capable of handling it, and the economy would be making a slow and steady recovery.