Declunkerize- it’s time to clean out your garage

The US cash for clunkers program has been given new life by the approval of an additional $2 billion. Environmentalists are complaining that there is nothing in the legislature that encourages people to purchase fuel efficient vehicles (just better than what they previously had). However the objective was to give new life to the automobile industry with the environment being a distant secondary benefit.

That being said, similar programs previously enacted in UK and Germany have had their own problems. In UK, car sales have improved slightly however they are still more than 20% lower than last year. In Germany, the law is being abused as clunkers are being shipped to Africa and other European countries rather than being scrapped! Dealers are being reimbursed by the government and also getting money for selling the cars.

In the US now is exactly the right time if you want to get government money to buy a gas guzzler like an H3T with a combined gas mileage of 16mpg!

3 Comments

  1. Twitted by khanseraiAugust 6, 2009

    […] This post was Twitted by khanserai […]

    Reply
  2. Cookie MonsterAugust 8, 2009

    What a lot of dealers have done in the UK is raise the prices of the cars, and then offer the £2000-£3000 discount on trade-ins for cars older than 7 years. The UK is loophole central, and obviously nobody saw that bit of common sense. Saying that, majority of our cars are now manufactured in Europe anyways, so it will not do a great deal for the industry in all honesty. Manufacturing as a whole is poor in the UK and will be hit even more because the position of GBP is strengthening against the USD, and hence Europe once again benefits from all of this!

    Reply
  3. Digital NomadAugust 10, 2009

    It’s a program that seems to be designed to keep people happy during a recession, makes us feel like the government is at least trying to do something. Unfortunately, my car gets too good a gas mileage to qualify for this program! So, it’s not making me happy! 😛

    Reply

Leave a Reply

Scroll to top