HOUSE BILL 298-199 did pass some of the guidelines:
"- vehicle must be less than 25 years old"
No personal problem with this caveat because, classic cars should be saved.
- must purchase 'new' or lease 'new' vehicle
My first issue with this is, there are many vehicles with warranties, fit the MPG sitting on dealers lots waiting to find a home (thus not impacting ecological resources). My second issue, in this economy A LEASE IS A WASTE of money, this is like throwing out rent money instead of owning a home one can afford.
- trade must get 18 MPG or less
As long as the vehicle picked to replace the trade in gets 4 to 10 MPH higher who the hell cares, the fossil fuel saved is money in the owner's pocket and national oil useage is reduced.
- traded vehicle must be REGISTERED & INSURED by owner for 1 year prior to trade
Again, government is specifying what is OWNERSHIP specifications by issuing timelines. This is another issue, because what does it matter if a person owns a vehicle of less than a year by 1 July 09? This is may keep 'dealers' from doctoring paperwork pulling in 'free government monies? Just a Wild Azz Guess..............
This little caveat will keep more CLUNKERS on the road then off because lemons are usually squeezed by many different hands.
- DEALERS apply a credit for trade in (which they deemed -- not the government)
This really chaps my hide, because no where does it state DEALERS will give the customer the BLUE BOOK VALUE but the scrap value because this will keep dealers from resaling said clunkers. (WE REALLY BELIEVE dealers ARE TOTALLY honest right?)
SO much like the HOUSING market collapse, a person vehicle is now only worth scrap prices?
This also sets up a sticky wicket, who will be tracking these HONEST DEALERS to ensure they only are PAID back what they gave credit to the new car owners?
- Program runs from NOW to 1 November or until GOV FUNDS run out
This "first come first serve" will go the way as: TV converter boxes -- folks will be left out. (SO SAD TOO BAD, YOU SNOOZE YOU LOOSE) It's another ploy to falsely INFLATE government claims as to our country's economic recovery.
Another point to consider, this deadline is BEFORE the year-end closeout sales MOST dealerships offer to move models off their lots so; they don't have to pay taxes.
- Vehicle traded in must be scrapped by DEALER
This may not be true of other places in the States but, here in TEXAS many 'vehicles' go mysteriously down to the "VALLEY." Meaning, they become vehicles in Mexico. So what is going to keep a HONEST dealer in Texas (other states) from 'SCRAPPING' said clunkers to a private dealers in Mexico?
Mexico subsidizes gas for it's citizens.................... So, gas prices do not affect their budgets with the same impact here.
More thoughts on this topic later but, My issues:
1. CASH FOR CLUNKERS program is another ruse to get AMERICANS spending,
2. devaluing their mobile investments,
3. and bolstering up an industry that is already MARKING UP INVENTORY prices to reflect the credit to be given -- supposedly to consumers'
4. No guidelines to keep Car Dealers from "scrapping" clunkers to another country
5. No accountability to ensure dealers get back from the GOV what they actually paid to vehicle buyers
6. Pushing more debt onto consumers just before the last fiscal quarter ends in 2009, (like with the 8K tax credit for house purchases -- this one will straddled two fiscal years)
. INFLATING consumer numbers falsely to give the American Public a false sense that our country is coming out of a recession.
Thoughts from inside a perturbed coop..............