Cash for Clunkers

[Richard]

I keep hearing how well Germany is doing, and I'm wondering... what area are the sales IN...because you have to remember, the east is still full of old Soviet bloc built Lada's and Travant's, worthless as scrap, but if you got a credit for turning one in...

It would be like getting rid of all the old Yugo's and K cars here.

[mbowers]

What I got from it is that putting tax money into the retail end of the car business by giving people an incentive to buy a new car, works better than putting tax money in at the factory level.

So far, all that money for GM and Chrysler hasn't done anything at the retail level.

If it gooses retail sales, what does it matter if the clunkers being turned in are K cars, Yugos, Trabants, or 10-year-old BMWs?

[texaslp]

I think the 2nd benefit is that it would take older cars with worse emissions off the road.

[TheOne]

The article specifies that the vehicle PURCHASED must be North American built. It does not concern itself with the origin of the clunker.

This is also not a new idea in the U.S., Texas had a similar program until recently. It did not require junking the clunker. It did however forbid the clunker from being re-registered in Texas. This too had a simple work aroun, register in another state, and then in turn transfer registration back to Texas. Something serious lacking in the tracking system......