What did the Clunker program save the US Taxpayer?

[herr.baer]

Got this in an e-mail today.

What did the Clunker program save the US Taxpayer?

A vehicle at 15 mpg and 12,000 miles per year uses an average of 800 gallons a year of gasoline.

A vehicle at 25 mpg and 12,000 miles per year uses an average of 480 gallons a year.

So, the average clunker transaction will reduce U.S. gasoline consumption by 320 gallons per year.

They claim 700,000 vehicles were ‘clunked’ – so that's 224 million gallons of gas saved per year. Refineries produce 19 or 20 gallons of gasoline per barrel of crude oil. 224 million gallons of gas = 1,487,179.49 barrels of oil.

According to Energy Information Administration, EIA - Petroleum Basic Data Americans use 378 million gallons of gasoline a day.

At $75.00 per barrel, people who traded their clunkers are saving $861,538,461.54. At $4,500 per clunker, we taxpayers contributed $3 billion to save $862 million.

How good a deal was that?

They'll probably do a better job with health care though.

[Guest billwilly73]

Does that mean since so many "gas drinking, clunkers" got destroyed that my 1996 Dodge 4x4 with a 360 is now a collectors item??

[BryanP]

If I'm reading that correctly then the clunker program will have paid for itself in three and a half years. Everything after that is gravy. An ROI of 3 years isn't bad, actually.

[TNTitan]

4 out of 5 cars purchased via Cash4Clunkers were foreign made.. wasn't Cash4Clunkers supposed to help stimpulate the US auto industry? whoopsie.

[Guest m&pc9]

Some Toyota and Hondas and even Isuzu are more american than some Ford and Chevrolet.

Can be read better here.http://www.usatoday.com/money/autos/2007-03-21-car-content-chart_N.htm

How American is that car?

Updated 3/23/2007 12:18 PM | Comments 17 | Recommend 24 E-mail | Save | Print |

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It's harder than ever to figure out which cars are the most American. The government requires that automakers disclose what percentage of a new vehicles' components are U.S. or Canadian and where the vehicle was assembled. Here is the information for most new models. The 2006 data was the latest information disclosed to the National Highway Traffic Safety Administration by automakers. The 2007 and 2008 statistics were compiled by USA TODAY from automakers and from visits to car dealerships. (Story)

Manufacturer Make and model

Model year

Percent

content

US/

Canada

Assembled in:

US/

Canada Outside

BMW BMW 3 Series(incl. M3)

2007

5%

Germany

BMW BMW 5 Series

2007

5%

Germany

BMW BMW 6 Series

2007

5%

Germany

BMW BMW 7 Series

2007

5%

Germany

BMW BMW X3

2007

5%

Austria

BMW BMW X5

2007

30%

S.C.

BMW BMW Z4

2007

30%

S.C.

BMW MINI Cooper

2007

5%

England

DaimlerChrysler Mercedes C Class

2007

0%

Germany

DaimlerChrysler Mercedes CLK Class

2007

0%

Germany

DaimlerChrysler Mercedes E Class

2007

0%

Germany

DaimlerChrysler Mercedes G Class

2007

0%

Austria

DaimlerChrysler Mercedes M Class

2007

62%

Ala.

DaimlerChrysler Mercedes Maybach

2007

0%

Germany

DaimlerChrysler Mercedes R Class

2007

62%

Ala.

DaimlerChrysler Mercedes S Class

2007

0%

Germany

DaimlerChrysler Mercedes SL Class

2007

0%

Germany

DaimlerChrysler Mercedes SLK Class

2007

0%

Germany

DaimlerChrysler Mercedes SLR

2007

0%

England

DaimlerChrysler Jeep Commander

2007

73%

Mi.

DaimlerChrysler Jeep Grand Cherokee

2007

76%

Mi.

DaimlerChrysler Jeep Liberty

2007

80%

Ohio

DaimlerChrysler Jeep Wrangler

2007

76%

Ohio

DaimlerChrysler Jeep Wrangler Unlimited

2007

79%

Ohio

DaimlerChrysler Chrysler 300

2007

75%

Canada

DaimlerChrysler Chrysler Crossfire

2006

0%

Germany

DaimlerChrysler Chrysler Pacifica

2006

82%

Canada

DaimlerChrysler Chrysler PT Cruiser

2007

35%

Mexico

DaimlerChrysler Chrysler PT Cruiser Convertible

2007

31%

Mexico

DaimlerChrysler Chrysler Sebring convertible

2006

82%

Mi.

DaimlerChrysler Chrysler Sebring sedan

2006

77%

Mi.

DaimlerChrysler Chrysler Town & Country

2006

82%

Mo., Canada

DaimlerChrylser Dodge Caliber

2007

69%

Ill.

DaimlerChrysler Jeep Patriot

2007

69%

Ill.

DaimlerChrysler Dodge Caravan

2006

80%

Mo., Canada

DaimlerChrysler Dodge Charger

2007

72%

Canada

DaimlerChrysler Dodge Compass

2007

69%

Ill

DaimlerChrysler Dodge Dakota

2006

77%

Mi.

DaimlerChrysler Dodge Durango

2006

79%

Del

DaimlerChrysler Dodge Grand Caravan

2007

83%

Canada

DaimlerChrysler Dodge Magnum

2006

74%

Canada

DaimlerChrysler Dodge Nitro

2007

76%

Ohio

DaimlerChrysler Dodge Ram Pickup

2007

72%

Mo. Mexico

DaimlerChrysler Dodge Avenger

2007

Mi.

DaimlerChrysler Dodge Viper

2006

85%

Mi.

Fiat Ferrari 612 Scaglietti/F1

2006

0%

Italy

Fiat Ferrari F430 F1/ Spider F1

2006

0%

Italy

Fiat Ferrari F430/Spider

2006

0%

Italy

Fiat Maserati Coupe

2006

0%

Italy

Fiat Maserati Spyder

2006

0%

Italy

Ford Motor Ford Edge

2007

95%

Canada

Ford Motor Ford Crown Victoria

2007

90%

Canada

Ford Motor Ford Econoline

2006

95%

Ohio

Ford Motor Ford Escape

2008

65%

Mo.

Ford Motor Ford Escape Hybrid

2007

65%

Mo.

Ford Motor Ford Expedition

2007

95%

Mi.

Ford Motor Ford Explorer

2007

80%

Ky.

Ford Motor Ford Focus

2007

75%

Mi.

Ford Motor Ford Freestyle

2007

85%

Ill.

Ford Motor Ford F-150

2007

90%

Mi., Ky., Va.

Ford Motor Ford Mustang

2007

70%

Mi.

Ford Motor Ford Ranger

2007

80%

Minn.

Ford Motor Ford Five Hundred

2007

80%

Mi.

Ford Motor Ford Fusion

2007

50%

Mexico

Ford Motor Jaguar S-Type 3.0 Litre/ Manual

2006

England

Ford Motor Jaguar S-Type 4.2 Litre/ R

2006

England

Ford Motor Jaguar XJ/ VDP/ XJR

2006

England

Ford Motor Jaguar XK8

2006

5%

England

Ford Motor Jaguar XK8 convertible

2006

5%

England

Ford Motor Jaguar XKR convertible

2006

5%

England

Ford Motor Jaguar XKR coupe

2006

5%

England

Ford Motor Jaguar X-Type 2.5 Man&Auto/3.0 Man&Auto

2006

England

Ford Motor Land Rover Freelander

2006

0%

England

Ford Motor Land Rover LR3

2006

1%

England

Ford Motor Land Rover Range Rover

2006

1%

England

Ford Motor Lincoln Mark LT

2007

85%

Mi.

Ford Motor Lincoln MKX

2007

95%

Canada

Ford Motor Lincoln MKZ

2007

50%

Mexico

Ford Motor Lincoln Navigator

2007

85%

Mi.

Ford Motor Lincoln Town Car

2007

85%

Mi.

Ford Motor Mazda 3

2007

0%

Japan

Ford Motor Mazda 5

2007

0%

Japan

Ford Motor Mazda 6

2007

65%

Mi.

Ford Motor Mazda CX9

2007

20%

Ford Motor Mazda Mazdaspeed 6

2006

0%

Japan

Ford Motor Mazda MX-5 Mi.ata

2007

0%

Japan

Ford Motor Mazda RX-8

2007

0%

Japan

Ford Motor Mazda Tribute

2008

75%

Mo.

Ford Motor Mercury Grand Marquis

2007

90%

Canada

Ford Motor Mercury Mariner

2008

70%

Mo.

Ford Motor Mercury Mariner Hybrid

2007

60%

Mo.

Ford Motor Mercury Milan

2007

50%

Mexico

Ford Motor Mercury Montego

2007

80%

Ill.

Ford Motor Mercury Mountaineer

2007

80%

Ky.

Ford Motor Volvo S40/V40 series

2007

2.00%

Belgium

Ford Motor Volvo S60 AWD

2007

1.50%

Sweden

Ford Motor Volvo S60 series

2007

1.50%

Sweden

Ford Motor Volvo S80 series

2007

1.50%

Sweden

Ford Motor Volvo V50 series

2007

2.50%

Belgium

Ford Motor Volvo V70 series

2007

1.50%

Sweden

Ford Motor Volvo XC70 series

2007

1.50%

Sweden

Ford Motor Volvo XC90 AWD V8

2007

1.50%

Sweden

Ford Motor Volvo XC90 series AWD

2007

1.50%

Sweden

Ford Motor Volvo XC90 series FWD

2007

1.50%

Sweden

Ford Motor Volvo XC90 T6 series

2007

1.50%

Sweden

Fuji Heavy Ind. Subaru B9 Tribeca

2006

45%

Ind.

Fuji Heavy Ind. Subaru Forester

2006

0%

Japan

Fuji Heavy Ind. Subaru Impreza

2006

0%

Japan

Fuji Heavy Ind. Subaru Legacy

2006

55%

Ind.

Fuji Heavy Ind. Subaru Outback

2006

55%

Ind.

General Motors Buick Lucerne

2007

85%

Mi.

General Motors Buick Rendezvous

2007

40%

Mexico

General Motors Cadillac CTS

2007

75%

Mi.

General Motors Cadillac Escalade

2007

70%

Texas

General Motors Cadillac DTS

2007

87%

Mi.

General Motors Cadillac XLR

2007

85%

Kansas

General Motors Cadillac STS

2007

75%

Mi.

General Motors Chevrolet Avalanche

2007

70%

Mexico

General Motors Chevrolet Aveo

2007

4%

S. Korea

General Motors Chevrolet Cobalt

2007

82%

Ohio

General Motors Chevrolet Corvette

2007

85%

Ky.

General Motors Chevrolet Equinox

2007

50%

Canada

General Motors Pontiac Torrent

2007

50%

Canada

General Motors Chevrolet HHR

2007

41%

Mexico

General Motors Chevrolet Impala

2007

90%

Canada

General Motors Chevrolet Malibu

2007

86%

Ks.

General Motors Chevrolet Silverado

2007

90%

Mi., Ind., Canada

General Motors Chevrolet Suburban

2007

70%

Texas, Wis. Mexico

General Motors Chevrolet Tahoe

2007

70%

Texas, Wis.

General Motors GMC Sierra

2007

90%

Mi., Ind., Canada

General Motors GMC Yukon

2007

70%

Texas, Wis.

General Motors Pontiac G6

2007

86%

Mi.

General Motors Pontiac GTO

2006

20%

Austrailia

General Motors Pontiac Solstice

2007

66%

Del

General Motors Pontiac Vibe

2007

65%

Calif.

General Motors Saab 9-3 Arc/SS/Linear/Aero

2007

1%

Sweden

General Motors Saab 9-5 Linear/Aero/Arc

2007

1%

Sweden

General Motors Saab 9-7X

2007

86%

Ohio

General Motors Saturn Aura

2007

86%

Kansas

General Motors Saturn Ion

2007

85%

Tenn.

General Motors GMC Canyon

2007

85%

La.

General Motors Chevrolet Colorado

2007

85%

La.

General Motors GMC Envoy/XL

2007

86%

Ohio

General Motors Hummer H3

2007

86%

Ohio

General Motors Buick Rainer

86%

Ohio

Isuzu Isuzu Ascender

2007

86%

Ohio

General Motors Chevrolet Trailblazer

2007

86%

Ohio

General Motors Saturn Relay

2007

77%

Ga.

General Motors Chevrolet Uplander

2007

77%

Ga.

General Motors Buick Terazzo

2007

77%

Ga.

General Motors Express, Savana

2007

86%

Mo.

General Motors Cadillac SRX

2006

80%

Mi.

Honda Motor Acura MDX

2007

65%

Canada

Honda Motor Acura RDX

2007

65%

Ohio

Honda Motor Acura RL

2007

5%

Japan

Honda Motor Acura TL

2007

70%

Ohio

Honda Motor Acura TSX

2007

5%

Japan

Honda Motor Honda Accord

2007

70%

Ohio Japan

Honda Motor Honda Accord Hybrid

2006

70%

Japan

Honda Motor Honda Civic

2007

55%

Ohio/Canada Japan

Honda Motor Honda Civic Hybrid

2007

55%

Japan

Honda Motor Honda CR-V

2006

5%

Japan

Honda Motor Honda Element

70

65%

Ohio

Honda Motor Honda FCX

2006

5%

Japan

Honda Motor Honda Odyssey

2007

70%

Ala

Honda Motor Honda Pilot

2007

70%

Ala

Honda Motor Honda Ridgeline

2006

75%

Canada

Honda Motor Honda S2000

2007

0%

Japan

Hyundai Hyundai Accent

2007

1%

S. Korea

Hyundai Hyundai Elantra

2007

1%

S. Korea

Hyundai Hyundai Santa Fe

2007

35%

Ala

Hyundai Hyundai Sonata

2007

36%

Ala

Hyundai Hyundai Tiburon

2007

5%

S. Korea

Hyundai Hyundai Tucson

2007

2%

S. Korea

Hyundai Hyundai Azera (XG350)

2007

3%

S. Korea

Hyundai Kia Amanti

2006

2%

S. Korea

Hyundai Kia Optima

2006

3%

S. Korea

Hyundai Kia Rio

2006

3%

S. Korea

Hyundai Kia Sedona

2006

7%

S. Korea

Hyundai Kia Sorento

2006

2%

S. Korea

Hyundai Kia Spectra

2006

4%

S. Korea

Hyundai Kia Sportage

2006

2%

S. Korea

Mitsubishi Motors Mitsubishi Eclipse

2007

51%

Ill.

Mitsubishi Motors Mitsubishi Lancer

2007

0%

Japan

Mitsubishi Motors Mitsubishi Galant

2007

54%

Ill.

Mitsubishi Motors Mitsubishi Lancer Evolution

2007

0%

Japan

Mitsubishi Motors Mitsubishi Montero

2007

0%

Japan

Mitsubishi Motors Mitsubishi Outlander

2007

0%

Japan

Mitsubishi Motors Mitsubishi Raider

2006

78%

Mi.

Nissan Infiniti FX45

2006

5%

Japan

Nissan Infiniti G35

2007

5%

Japan

Nissan Infiniti M45

2006

0%

Japan

Nissan Infiniti Q45

2006

5%

Japan

Nissan Infiniti QX56

2007

65%

Miss

Nissan Nissan 350z

2007

0%

Japan

Nissan Nissan Altima

2007

65%

Miss, Tenn

Nissan Nissan Armada

2006

60%

Miss.

Nissan Nissan Frontier Truck

2006

60%

Tenn.

Nissan Nissan Sentra

2006

28%

Mexico

Nissan Nissan Maxima

2007

60%

Tenn.

Nissan Nissan Murano

2007

0%

Japan

Nissan Nissan Pathfinder

2006

60%

Tenn.

Nissan Nissan Quest

2006

60%

Miss.

Nissan Nissan Titan

2007

65%

Miss.

Nissan Nissan Xterra

2007

65%

Tenn;

Porsche Porsche 911

2006

3%

Germany

Porsche Porsche Boxster/S

2006

2%

Finland

Porsche Porsche Cayenne

2006

1%

Germany

Suzuki Motor Suzuki Aerio

2006

0%

Japan

Suzuki Motor Suzuki Grand Vitara XV6/XL7

2006

0%

Japan

Toyota Motor Lexus ES330

2006

5%

Japan

Toyota Motor Lexus GS300/430

2006

5%

Japan

Toyota Motor Lexus GS450h

2007

0%

Japan

Toyota Motor Lexus GX470

2006

0%

Japan

Toyota Motor Lexus IS250

2007

5%

Japan

Toyota Motor Lexus LS460L

2007

0%

Japan

Toyota Motor Lexus LX470

2006

5%

Japan

Toyota Motor Lexus RX350

2007

60%

Canada

Toyota Motor Lexus RX400h

2007

0%

Japn

Toyota Motor Lexus SC430

2006

0%

Japan

Toyota Motor Scion tC

2007

0%

Japan

Toyota Motor Scion xA

2007

0%

Japan

Toyota Motor Scion xB

2007

0%

Japan

Toyota Motor Toyota 4Runner

2006

5%

Japan

Toyota Motor Toyota Avalon

2007

75%

Ky

Toyota Motor Toyota Camry Solara

2007

80%

Ky

Toyota Motor Toyota Camry

2007

75%

Ky Japan

Toyota Motor Toyota Corolla

2007

60%

Calif, Canada Japan

Toyota Motor Toyota Corolla Matrix

2007

70%

Calif.

Toyota Motor Toyota Yaris

2007

0%

Japan

Toyota Motor Toyota FJ Cruiser

2007

0%

Japan

Toyota Motor Toyota Highlander Hybrid

2007

0%

Japan

Toyota Motor Toyota Highlander

2006

5%

Japan

Toyota Motor Toyota Land Cruiser

2006

5%

Japan

Toyota Motor Toyota Prius

2007

0%

Japan

Toyota Motor Toyota RAV4

2007

0%

Japan

Toyota Motor Toyota Sequoia

2006

65%

Ind.

Toyota Motor Toyota Sienna

2007

85%

Ind.

Toyota Motor Toyota Tacoma

2007

65%

Calif. Japan

Toyota Motor Toyota Tundra

2007

75%

Texas, Ind.

VW-Audi Audi A3

2006

1%

Germany

VW-Audi Audi A4

2006

1%

Germany

VW-Audi Audi A6/A8

2006

1%

Germany

VW-Audi Audi TT

2006

1%

Germany

VW-Audi Volkswagen Rabbit/GTI

2007

1%

Germany

VW-Audi Volkswagen Jetta/GLI

2007

6%

Mexico

VW-Audi Volkswagen New Beetle

2007

14%

Mexico

VW-Audi Volkswagen New Beetle Convertible

2007

11%

Mexico

VW-Audi Volkswagen Passat

2007

1%

Germany

VW-Audi Volkswagen Touareg

2007

1%

Slovakia

VW-Audi Volkswagen Eos

2007

1%

Portugal

Edited September 17, 2009 by m&pc9

[Guest H0TSH0T]

don't worry, the cash for clunkers, has come and gone, but the savings still continues, you just have to be patient, once these losers that took the cash for clunkers,(cause they could not afford a new car,(i dare not to point the finger directly to poor financial decisions)) will soon find financial short comings in the future (due to the economy and lack of stable jobs(still not blaming it on poor decision making)) and default on the loan, it will wind up getting repossessed, cleaned and sold later to one of us at a deep discount. did everyone forget what just happened to the housing bubble? the government just did the same thing with houses, not to long ago, look at where we are now because of it. Just wait there will also be an auto bubble and will collapse all the same, i predict. So be smart save you pennies don't get jealous over some losers shiny new car, it will be yours soon enough, with a little hard work and some planning you can take advantage and be in a stronger financial position to cash in on this soon arriving situation. And if i am wrong you will probably have saved what the government stimulated the poor with minus the guilt of passing it on to your neighbors, Good for you if you did the right thing, (pat on the back).

Edited September 17, 2009 by H0TSH0T

[Motasyco]

Regardless of where a vehicle is manufactured, it's where the profits go that seems important to me. A car made in the US by a Japanese company creates profits in Japan. A car made in Mexico by a US company creates profits in the US. Certainly jobs are provided in the country of manufacture but dollars go to the country the company is based in. Am I misguided here?

[Guest H0TSH0T]

Regardless of where a vehicle is manufactured, it's where the profits go that seems important to me. A car made in the US by a Japanese company creates profits in Japan. A car made in Mexico by a US company creates profits in the US. Certainly jobs are provided in the country of manufacture but dollars go to the country the company is based in. Am I misguided here?

partially misguided, there are a lot of things that go into the making of a car, different components are made by different co. in different countries, these parts will break or wear out at different times, thus goes into the car maintenance or repair, this is another sector of the car world, not to mention, wreckers, insurances, or the job they will be preforming by the individual that purchased it.

on the other hand, if someone purchased a car, and used it solely in a different country that would be different.

there are to many variables to make an accurate account on who benefits or prospers more over said vehicle, but you can also see that more than the cost of the car comes into play. same goes for the use of, and how long it last, what breaks, who fixes, who insures, what fuel, tires, breaks, parts, who does the repairs, who pays traffic infractions, paints, watches, where it is parked, how it helps the purchaser, ect the list is endless.

[Guest m&pc9]

Regardless of where a vehicle is manufactured, it's where the profits go that seems important to me. A car made in the US by a Japanese company creates profits in Japan. A car made in Mexico by a US company creates profits in the US. Certainly jobs are provided in the country of manufacture but dollars go to the country the company is based in. Am I misguided here?

I think jobs are very important.

How about dodge being owned by a German Co. So Chrysler and Dodge profits going to Germany. Are they still an American car?

Hummer now owned by China.

[zeitgeist]

I would rather clunker money go to Americans to buy new cars than wars for Israel, food stamps, welfare handouts for illegal aliens, section 8 housing, and any of the other things we waste money on.

[poak]

I would rather clunker money go to Americans to buy new cars than wars for Israel

[-boatman-]

Regardless of where a vehicle is manufactured, it's where the profits go that seems important to me. A car made in the US by a Japanese company creates profits in Japan. A car made in Mexico by a US company creates profits in the US. Certainly jobs are provided in the country of manufacture but dollars go to the country the company is based in. Am I misguided here?

If you are misguided I am also because that is the way I see it. Yeah, jobs are important but if the money goes to Japan it is not going to do anybody any good over here. The more profitable our car companys are the more jobs we have and everybody wins.

[Motasyco]

I think jobs are very important.

How about dodge being owned by a German Co. So Chrysler and Dodge profits going to Germany. Are they still an American car?

Hummer now owned by China.

Daimler dumped Chrysler a while back. It's back in the US.

[Motasyco]

partially misguided, there are a lot of things that go into the making of a car, different components are made by different co. in different countries, these parts will break or wear out at different times, thus goes into the car maintenance or repair, this is another sector of the car world, not to mention, wreckers, insurances, or the job they will be preforming by the individual that purchased it.

on the other hand, if someone purchased a car, and used it solely in a different country that would be different.

there are to many variables to make an accurate account on who benefits or prospers more over said vehicle, but you can also see that more than the cost of the car comes into play. same goes for the use of, and how long it last, what breaks, who fixes, who insures, what fuel, tires, breaks, parts, who does the repairs, who pays traffic infractions, paints, watches, where it is parked, how it helps the purchaser, ect the list is endless.

All of these things would apply to a car made by a US company as well. In the big picture, I think we're still ahead by buying cars from US comapnies and keeping the purchase profits and ancillary profits in the US.

[Guest m&pc9]

So you think it is ok for an American Co. to send jobs to Mexico as long as the profits stay here.

Without American jobs who is going to buy the car?

And Im talking about the whole picture. Textile mills, clothing producers, Just about all MFG jobs are being sent to mexico and other countries where they get cheap labor.

[Motasyco]

So you think it is ok for an American Co. to send jobs to Mexico as long as the profits stay here.

Without American jobs who is going to buy the car?

And Im talking about the whole picture. Textile mills, clothing producers, Just about all MFG jobs are being sent to mexico and other countries where they get cheap labor.

Please don't misunderstand me. I would prefer that the jobs and the profits stay here. I was the victim of jobs moving to Mexico a few years back. I certainly don't endorse that but would still rather see US vehicles purchased than vehicles made by foreign owned companies. In my opinion the unions and their shenanigans are what have driven much of the US automakers to manufacture outside our borders. I would ideally like to see US citizens buying US vehicles made of US parts by US employees using US materials. Better yet, people in other countries as well buying US vehicles made of US parts by US employees using US materials. Let's get back on top! Anything less than this is sending our dollars, at least to some degree, to other countries. I'm tired of seeing our economy supporting other countries when we need to be looking after ourselves. It kills me to see someone on a government income (my taxes) spending money (mine) to buy a product that builds the economy of another country.

Another problem is quality. Too many workers just don't care about the quality of their product anymore. If we build crap, people will by from somewhere else. Work ethics have changed dramatically over the last 25 years. Many don't want to work for a paycheck anymore. Something for nothing is the name of the game and our country can't economically survive long with that attitude.

[analog_kidd]

Here is what Dave Ramsey (financial advisor / consumer advocate) has to say about the whole Cash for Clunkers program

Personal Finance Newsletter - Dave Ramsey's September 2009 Newsletter

Dave's Thoughts on "Cash for Clunkers"

With all the buzz about Cash for Clunkers, it’s easy to think that it was a great way for people to get a better set of wheels. But was it really? No way! Cash for Clunkers was simply a way for broke people to buy cars that they really couldn't afford. It was a bad idea on multiple levels. But before digging into that, let’s take a little history lesson.

About a decade ago, a fair housing program was started, called a sub-prime lending market. The idea behind it was that everyone “needed†to own a home—including broke people. The government decided to start a program to reinvest in communities, which allowed pretty much anyone to borrow money to buy a house. Lending companies charged high interest rates, causing already struggling families to go even further into debt.

Basically, this was a program designed to encourage broke people to buy houses. Most people didn’t even know it existed until it unraveled and became the number-one cause of our recent recession. The government took those stupid loans back and securitized them, which created the financial mess last fall. Helping broke people buy houses didn’t turn out to be a great government program. Guess what? Helping broke people buy brand-new cars—and now home appliances—will turn out just as bad.

The Cash for Clunkers program was designed exactly for people who should not take advantage of the program. You trade your $2,000 clunker in for a brand-new, shiny $20,000 car, and the only way you can afford it is with a high-interest payment. That just means you really couldn’t afford it to begin with. Doesn’t this sound like the sub-prime mortgage problem all over again?

When you drive that new car off the lot, you’re immediately going to lose $4,500. The worst car accidents happen on the showroom floor. New cars go down in value like a rock. The government thinks it’s going to save the American auto industry by putting broke people into cars they can’t pay for. It’s going to come back to bite them—and the rest of us—in the form of taxes galore.

Another bad thing about this program is that we, the taxpayers, are paying for the new cars! It’s morally wrong of the government to take money away from us—against our will—in the form of taxes and give that money to someone else to buy a stupid car they can’t afford in the first place! This is theft, plain and simple.

Cash for Clunkers is a program that redistributes wealth in the name of the environment, and it’s going to be a curse on the car dealer and the manufacturer that carries the paper. It’s going to hurt the broke person who bought a car he couldn’t afford. And it’s already a problem for our country, because it’s adding dollars to the national debt.

There’s always a twist with government programs like this. They try to think of creative ways to help people, but the situation usually ends up worse than it did before they “helped.†In the end, I should decide what to do with my own money. If I want to buy you a car, I will! And if you can’t buy a car without actually paying for the whole thing, then you’re better off keeping your “clunker.â€

So good riddance to a really bad program that has done more damage than good.

[Mariner]

I don't know how much effect buying a GM product has on keeping money in this country. I used to work for them years ago and feel that jobs mean more then where a company is based out of. Hey we gave Generous Motors billions in tax dollars to keep them afloat and what do they do. The last I heard of there restructuring plan called for them to close 9 plants in the U.S. and only 3 overseas. Doesn't sound like a good investment for my tax dollars. If americans are working they are spending money in U.S. stores keeping others employed in this country. If GM moves all of their operations overseas but keeps there head quarters here so they can say they are an american company, big whoop their executives get rich and very little is seen by anyone here. In my opinion I think the jobs being in this country is more important then where the company headquarters are.

[poak]

In my opinion I think the jobs being in this country is more important then where the company headquarters are.

In such a global economy as this, I tend to agree.

[Guest m&pc9]

Please don't misunderstand me. I would prefer that the jobs and the profits stay here. I was the victim of jobs moving to Mexico a few years back. I certainly don't endorse that but would still rather see US vehicles purchased than vehicles made by foreign owned companies. In my opinion the unions and their shenanigans are what have driven much of the US automakers to manufacture outside our borders. I would ideally like to see US citizens buying US vehicles made of US parts by US employees using US materials. Better yet, people in other countries as well buying US vehicles made of US parts by US employees using US materials. Let's get back on top! Anything less than this is sending our dollars, at least to some degree, to other countries. I'm tired of seeing our economy supporting other countries when we need to be looking after ourselves. It kills me to see someone on a government income (my taxes) spending money (mine) to buy a product that builds the economy of another country.

Another problem is quality. Too many workers just don't care about the quality of their product anymore. If we build crap, people will by from somewhere else. Work ethics have changed dramatically over the last 25 years. Many don't want to work for a paycheck anymore. Something for nothing is the name of the game and our country can't economically survive long with that attitude.

I understand where you are coming from. But another thing to think about All the big 3 automakers are owned by stockholders. How many foreigners have bought stock in these company's?

I look at the Ford Fusion it is assembled in Mexico with 50% American or Canadian products. That makes me sad. And makes me not care if I buy an American car.

And the Honda Accord is assembled in America with 70% American or Canadian products.

I think jobs are more Important especially now that 9,400,000 Americans are unemployed.

[BryanP]

Regardless of where a vehicle is manufactured, it's where the profits go that seems important to me. A car made in the US by a Japanese company creates profits in Japan. A car made in Mexico by a US company creates profits in the US. Certainly jobs are provided in the country of manufacture but dollars go to the country the company is based in. Am I misguided here?

Yes, you are. Wages paid to local workers all throughout the manufacture and sale process feed back into our economy. The profit on individual vehicles isn't that large. It's well worth the trade.

[Guest abailey362]

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What about all the clunkers that were destroyed that would have been bought up as used by the lower income families of america? since there will be less cars available for them to buy down the road then they will need more govt assistance to be able to buy a hoopty

[Guest tedbo]

There were some "clunkers" that looked a damn sight better than what I am driving now!

Yea,yea,my choice. But mine is paid for and has been for several years.

Besides, I be 'po!

[Guest SUNTZU]

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What about all the clunkers that were destroyed that would have been bought up as used by the lower income families of america? since there will be less cars available for them to buy down the road then they will need more govt assistance to be able to buy a hoopty

When Hannibal is at the gates, we'll not have to worry about Mad Max style barricades and calling our vehicles names like Spinning Wheels of Death.

-This post brought to you by Reynolds Wrap and Alcoa Aluminum...for all your tinfoil needs.

[Chief07]

You are missing the point.

Why should we as Americans subsidize others through our

taxes pay for someone elses new car?