Behind The Wheel
- Growing Sub-Prime Auto Loans - New Troubles for Automakers?
- Savings at the Pump Still Supreme for Car Buyers
- GM Says It's Dropping Out of Super Bowl Ad Race
- Two New Models, Two Different Drivers in Mind
- GM Still Likes Its No-Facebook Ad Strategy
- World's Biggest Brands Flex Their Muscles
- A New World Record: 80 Million Vehicles... and Counting
- Is Toyota Back?
- Ford Cuts Summer Idle Time at US Plants, Will GM Follow?
- Auto Stocks Stuck in Neutral
MOST SHARED
- How Boaz Weinstein and Hedge Funds Outsmarted JPMorgan
- JPMorgan Trading Loss: Did Regulators Miss the Risk?
- As Bank Loans Dry Up in Spain, Small and Medium Businesses Fight for Life
- Marc Faber: 100% Chance of Global Recession
- RIM May Cut at Least 2,000 Jobs in Restructuring: Report
- Citigroup Lost $20 Million on Facebook IPO Trades
- How Nasdaq Lost Control of Facebook IPO, by the Minute
- Judge Says Skilling Can Seek New Trial
- The Biggest Market Myth There Is?
- What College Tuition Will Look Like in 18 Years
- A New Look at the ‘New Poor’
- Six Pack: Beer Buzz of the Week
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Under Pressure, FHA Skews to Wealthier Home Buyers
- Big Stock Upside for Hudson City Deal: Analyst
- 5 High-Yield Stocks Ready to Boost Dividends
- Yoshikami: Four Things You Need to Know About Gold Now
- Steinbock: The Euro Zone Endgame Begins
- Option Bulls Take Another Shot on Idenix
- How Nasdaq Lost Control of Facebook IPO, by the Minute
- Week Ahead: Europe Has Wall Street Bull on Short Leash
- Pro-Bailout Greeks Regain Lead in Polls Before Vote
- Citigroup Lost $20 Million on Facebook IPO Trades
- JPMorgan to Shake Up Risk Team After Big Loss: Report
- RIM May Cut at Least 2,000 Jobs in Restructuring: Report
- EU Finalizes Bank Reforms; Shifts Burden to Bondholders
- Spain's Bankia Eyes Stake Sales After Record Bailout
- EU Set to Launch Action Against China Over Telecom Aid
RSS FEED
Cash For Clunkers Program - A Clunker?
Text Size 
CNBC Reporter
 |
Photo by: Tracy O. |
I had one back in the day. A '77 Grenada stick with a cracked windshield. My wife detested it. My friends mocked it. And when I finally sold it to a salvage yard in Wichita, Kansas the guy running the place chuckled, and gave me $25 (I took my wife to lunch with my handsome profit).
Looking back, I wonder if my Grenada would qualify as a clunker under the new "Cash for Clunkers" bill. The bill would give people a voucher for $3,500 to $4,500 if they turn in their old car or truck for new fuel efficient model built in North America.
On paper it sounds good. In reality, the number of people who may actually benefit from this program could be extremely limited.
Edmunds.com has been highlighting the fact the current legislation requires people to own a clunker (vehicle averaging less than 18 miles per gallon) for at least year. In addition, if you can get more than $4,500 selling your clunker, then what's the incentive to try and go through a dealer for the clunker program, as opposed to just selling it on your own.
This "Cash for Clunkers" bill is evolving into one of those pieces of legislation that politicians will crow about as a sign of progress, but the impact could be limited. It appears the number of car owners who "fit the profile" of being eligible to take advantage of the program is pretty narrow. Could that change as gas prices move higher and people driving gas guzzlers look to bail out? Maybe.
The bottom line: if you thought the clunker bill would be one of those "one-time" events that could dramatically impact the auto industry, don't get carried away.
_____________________________________
Click on Ticker to Track Corporate News:
- Ford Motor [F
Loading...
()
]
- General Motors [GMGMQ
Loading...
()
]
- Toyota Motor [TM
Loading...
()
]
- Nissan [NSANY
Loading...
()
]
- Honda Motor [HMC
Loading...
()
]
_____________________________________
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes
