Remember the Cash for Clunkers (CARS) program the network media liked so much? Well, according to analysis from Edmunds.com the government spent $24,000 per car when you subtract cars that would have been sold even without the program.
CNNMoney.com reported Oct. 29 that only 125,000 vehicles sold under the program (out of 690,000) "would not have been sold anyway," according to Edmunds.
The government allotted $3 billion for the CARS program, but Edmunds' said that more than 80 percent of those cars would have been purchased anyway.
Jeremy Anwyl, Edmunds' CEO, wrote an op-ed for the Wall Street Journal Aug. 3 pointed out that in any month there are 60,000 to 70,000 "clunker-like" sales. "We have crammed three to four months of normal activity into just a few days," Anwyl concluded.
Despite misgivings from Anwyl and others, the network news media embraced the government giveaway. All three networks described it as a "victim of its own success" AFTER it ran out of taxpayer funding in its first week.
Katie Couric heaped praise on CARS saying Aug. 3, "[S]ales reports out today show the Cash for Clunkers program gave U.S. automakers a much-needed jumpstart." While CNBC's Jim Cramer called it "money well-spent" during the "Today" show.
In clunker stories citing experts, proponents of CARS outnumbered critics nearly three times as often (between July 4 and Aug. 3).
Occasionally a downside was mentioned, such as the "five hours of paper for each car" reported by ABC's Sharyn Alfonsi.
—Julia A. Seymour is an assistant editor for the Business & Media Institute.
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$24k? That's like 3
October 29, 2009 - 13:44 ET by pwoz$24k? That's like 3 KIAs!
I drive an Acura, anyway.
Big government = STUPID.
October 29, 2009 - 15:05 ET by MaximusBraveheartBig government = STUPID. Funny what people do with other peoples' money... Actually stupid and not funny. M-B
Sure did help goose the 4Q numbers though...
October 29, 2009 - 14:07 ET by c5thenIt's a shame that the program "canibalized" car sales that would have happened in Sep, Oct and Nov and moved them into Aug.
Who would have thought that would happen? /sarc
Throw 'da bums out!!!
Before it's too late.
www.loyaltoliberty.com
Loss of too many used cars
October 29, 2009 - 15:12 ET by richb313The real tragedy of the cash for clunkers is the loss of many thousand used cars from the market. Not everyone can Afford a new car even with the cash for clunkers assistance. Many of the cars that were traded in on that program could have made decent, safe, and affordable transportation for thouands of lower income families. Now they will have t continue driving thier less safe, and actually less affordable cars they now own. They are less affordable due to higher maintenance costs.
I saw many of the cars and trucks traded in on Cash for Clunkers were in actually good shape and if the dealer followed the program all these cars and trucks headed for the crusher. That is a waste and waste is the biggest offence one can make when concerning the environment. The real Green thing to do is use something until it is used up, then recycle it such as crushing, stripping for parts at salvage yards, etc. Look good short term gains are almost always worse than normal cycles of use and disposal.
2 Buyers
October 29, 2009 - 15:12 ET by Jerry MackHe makes a good point. I know 2 people that were planning on buying a new car by the end of the year. Instead they bought them under the Cash for Clunkers program.
Only $24,000 per car?
October 29, 2009 - 15:43 ET by motherbeltWell, that's a bargain!!
How can you put a price tag on saving the planet??
CNBC's Jim Cramer called it "money well-spent" during the "Today" show.
If it reduces carbon emissions by .00001%, then it's worth it!!!
Well there goes your hope
October 30, 2009 - 01:57 ET by gmaniac1Well there goes your hope and more than just a little change... woo hoo, it must be cold because a lot of people got snowed last November!
Keep the laughs coming because this is getting good and I have plenty of popcorn to watch this melodrama unfold.