The Car Allowance Rebate System has been for about a month now. While there are interesting aspects to the program all of the details haven’t been ironed out yet and we can still see some changes happen. The CARS, or Cash for Clunkers, program is set to finalize July 24th.
Here are some changes I’d like to see:
- The program gets extended past November 1st – Let’s be realistic here. The rules aren’t even going to be final until the end if July. That leaves three months for the CARS plan to take place. If the government really wants to make a difference in the fuel economy of cars on the road then we need more than three months to help it along.
- Allow cars older than 25 years – Are cars that are older than 25 years old getting better mileage than one younger than 25 years? Yeah, a car that old may not be worth much but if it’s got bad mileage and it’s still being driven why not allow it to be part of the program. Perhaps the credit could be decreased for cars over 25 years.
- Allow used cars into the program – Just because a car is used doesn’t mean it doesn’t get great mileage. I wouldn’t mind seeing a restriction like nothing older than 3 years old or something like that but I think if fuel efficiency is the goal then used cars should be allowed.
- Allow more expensive vehicles – Currently the maximum retail price of the new car purchased is $45,000. Why not up that? As long as the new car meets the fuel economy requirement they should allow a person to trade their clunker in for a more expensive car.
- Lower the lease terms – If you are planning to lease then in order to qualify the lease must be at least 5 years. Why not 3 years? Make the incentive greater to get people to trade-in their clunkers. A five year lease is awfully long in my opinion.
- Make it about fuel economy and not monetary economy – With all of the restrictions, including the short term of the program, it seems that CARS is more about stimulating the automobile business than it is about upping fuel economy or lowering our dependence on oil. Make this a program that truly builds an incentive to better the environment and our oil dependence.
I’m looking forward to see what the final CARS program will be. Hopefully there will be some changes that make the program more viable.
What would you like to see in the final version of the Car Allowance Rebate System?
photo credit: mtneer_man
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I would like to see used cars included as well. I will probably never purchase a brand new car because new cars depreciate so rapidly. Why not buy a 1-3 year old car and save a few thousand dollars? And as you said, if the fuel economy meets the guidelines, who cares how old the car is?
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I believe the program was originally intended for fuel economy, but it morphed into a “feel good” program designed to stimulate the auto industry and nothing else. I’m sure quite a few people will participate, but it will not be nearly as far reaching as it could have been.
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Agreed. That there is a program shows some promise but it won’t have the effect it’s setting out for. Too little too quick.
I posted about this as well – and now i’ve had a dealer post complaining about how this program taxes the clunker credit as income for dealers – and they’re not happy about it. My prediction- this program will be a huge failure.
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I did see that the dealers get taxed on it (but not the buyers). A dealer will have to decide whether it’s worth the possible sales or not. Sounds like this could limit some dealers from participating.
I think the changes you suggest make sense. I like the idea of used cars as well, since it would also help local businesses. Right now, local used car dealers not attached to some dealership can’t take advantage of the program. Just like the tax credit introduced earlier this year, its maddening that the focus is mainly on stimulating the auto industry, rather than helping small, local businesses that are the lifeblood of the economy that most of us experience every day.
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Good point!
I agree with most of your points here, unfortunately most of the program is aimed at your last point, helping the automobile factories, that is not necessarily a bad thing, just short sighted on the part of our congress. So much more could be done with this legislation to help us with energy independence, and that would bode well for our economic future as well as cleaner air and long term life changes for the better.
Agreed. They should at least call it what it is – an economic stimulus plan with an eye toward the environment.
My issue is registration. Just because I let my registration lapse shouldn’t be a disqualifing factor for this program as long as I can get the vehicled registered. This requirement is stupid. Just my opinion.
I don’t disagree. If you get the car registered and you’re willing to buy a new one then why not?
Not all people wish to get rid of there old car for a new car. I have a friend who was recently given a car from a family member who passed away and he would never let anyone drive his car never mind get rid of it for a modern one. Although the car does no good at all for the environment issue we are all trying to change, my friend should not be pressured into getting rid of his car or feel he needs to as parts for old cars could become limited.