Obama’s ‘Cash 4 Clunkers’ rebate program aims to take your clunker off your hands in exchange for $3,500 - $4,500 cash towards a newer more gas-efficient auto — as long as your clunker doesn’t get 18 miles to the gallon. But here’s the twist, the engines in these so-called ‘clunkers’ must be destroyed on the lot, by the dealer, before the government will pay the dealers.
So what’s occurring all around the country is that perfectly good cars that were driven to school, to the grocery store and to doctor’s appointments yesterday are being destroyed today.
Here’s a video documenting the destruction of a late model Volvo’s perfectly good engine. The dealer drains the oil and antifreeze from the Volvo, then a sodium silicate solution is poured into the engine. As the engine is revved, the solution solidifies into glass and the engine seizes up and blows.
As you watch this video, hopefully you’re not one of those moms who could use a perfectly good running car to take your kids to school, or to a doctor’s appointment. And I hope you don’t run a charitable organization that could have used that Volvo as a donation or a tax write off.
If you’re thinking this is a great incentive to get junk cars off the road, remember that, as with all government programs, this one also has the potential for abuse.
I hear that used car dealerships which normally sell cars for under $4,500 are now busy destroying the engines on those cars and turning the paperwork in to the government for reimbursement. Don’t believe me? Try buying a used car for under $4,500 anywhere in the city.
Just an example of more wastefulness courtesy of the Obama administration that we will end up paying for in the long run.
This entry was posted on Sunday, August 2nd, 2009 at 11:11 pm and filed under Barack Obama, Business, Money & Finances, OBAMA FAIL, Politics, Shopping/sales, video . You can follow any responses to this entry through the RSS 2.0 feed or Trackback from your own site. This site is Gravatar enabled. Sign up to upload your own avatar.
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*****YAWN****
NEXT NEXT NEXT PLEASE!!!!
I hear that used car dealerships which normally sell cars for under $4,500 are now busy destroying the engines on those cars and turning the paperwork in to the government for reimbursement. Don’t believe me? Try buying a used car for under $4,500 anywhere in the city.
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I bought a 1998 Caddy last August for $3600 including tax, title dock fees and for them to drive it over 200 miles to deliver it to me. The car only had 83k miles. It came from a car dealers lot and I found it on “auto track”. It now has 87.5 miles but I am still loving it.
Technically, the late model volvo should not have qualified for the program. The trade-in has to get less than 18 miles per gallon HWY. There’s a chart that gives an estimate. I looked at the chart to see if my SUV qualified…nothing newer than 2001 qualified unless it’s an 8 cyclinder.
Anyway, the money for this program is coming out of my pocket. Let’s see, I paid for GM to go into bankruptcy … not I’m paying for them to give away cars and put money in their pockets.
Meanwhile, my car is in the shop being repaired because $4500 or not, I can’t afford anymore monthly payments. Who’s going to give me money for that?!?!?
Oops, I mean “now I’m paying…” and “…who’s going to give me money to fix my car”
yeah i really want to take advantage of this i want a kia soul ,,,,,,but i havent paid car payments in 4 yrs.. drive a 99 ford now,,,, so car payment and insurance…..i still cant afford all that
My gas guzzler needs a front flex pipe that costs $450 because you can only get it from the dealer. I have an Escape that does not qualify because it is a 2005 4 cylinder.
spongebobfan Says:
yeah i really want to take advantage of this i want a kia soul
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Where I live the Kia’s are the biggest sellers for this deal. I just talked to the same guy (from the car lot) and he said “I sold another one”. I just faxed over proof of ins for the past year for our customer. I have too clunkers but one does not qualify even though it’s a ‘94′. The other one does qualify it’s a ‘77′. Where I live if you get a Kia they match the rebate and a Kia can end up costing $3500 + tax, fees, etc. etc. I have to look into the etc. etc. I am hoping those taking advantage of this do not end up being taken advantage of. I have not had a car payment for many years, but it would be nice to have a brand new car.
@ Anna:
From what I understand the rules allow dealers to sell the cars at full MSRP, meaning the car buyer does not get to negotiate the selling price. So when you think about it, there is no “deal” if the dealer is adding that $3,500 back onto the price of the car. I feel for all those people who really can’t afford the car payments. What happens if they end up losing their jobs in this recession?
right Auntie. I was going to buy a vehicle right before I was laid off. Good thing I am smart. The people at the dealership were stalkers!
@ shunda: The used car dealerships are definitely taking advantage by getting rid of their inventory. There’s no way 250,000 people bought cars in just a few days. Look at the Volvo in the video. That car is practically brand new!
My daughter’s boyfriend works at his father’s BMW dealership. Friday, I asked him how was business going with the program. He said “GREAT”!
I was surprised because if you can afford the car payment on a new BMW then you didn’t need this program to begin with.
What exactly was the purpose of ‘cars for clunkers’ program?!?
at the end of the day ..it is the consumers responsiblity to do there research ..this i still a business…they r not forcing thers people to buy these cars …they r buyn them of their own free will ….some of these peoplr REALLY can’t afford it , but since the deal is out there they feel they have to take advantage of it …
** i need spell check
Well last weekend. Mo mother took advantage of the deal. She had a 92 ford blazer. Got 4500 but the employee discount and she negotiated her deal. A car thats usually 20-24k fully loaded, after all they deducting. It only cost her 16k. She got a lot of discounts…I say go to someone you can trust thats not going to manipulate u. She left out of there with a 09 G6 Pontiac. Its about time. Its worth to get if you need a more reliable vehicle to get you where u need to go.
Just like in the book of Samuel (1 Samuel 8:10-20), Americans (or at least us black folks) demanded a king to rule over us. Even though we saw the ominous warning signs before Obama was elected, they voted for him anyway (I didn’t vote for Obama or McCain). Now we see that Obama’s “magic touch” and “cool demeanor” will drag my 2 young children’s children further into debt. And he wants to replicate this CARS mess with healthcare?
Well, America is getting what and who they asked for…