Cash For Clunkers

No question this was good to get the interest going and boost consumer spending. But that's not all .

Pulling tomorrow's sales forward, which may be disruptive to the auto supply chain by ramping up production, and then having another slow down when the program ends is something that wasn't anticipated. That and the red tape SNAFUs over rushing this through NHTSA without having answered all the questions made the regulation was a pain for the industry.

For example, it should've been defined at the outset whether the rebate to the dealers was subject to income tax or not. The administration of the program was lacking.

Also the $4,500 max rebate was too generous, as evidenced by the massive response. It would've been wiser to have a lower amount and extend the duration of the program.

The bottom line is that it was a good idea, could've been executed better, and may have been overdone.

"Cash For Clunkers" Rulemaking Published

I don't believe in conspiracies. Except for this one. The Government comes up with the acronyms first, and then chooses words that will fit. How else do we explain words that say little except for the cute little acronyms they form hmmm?

The summary of the "Consumer Assistance to Recycle and Save Act of 2009" and notice of upcoming rulemaking proceeding was published today. NHTSA, in conjunction with EPA, is to have everything ready by July 24th.

In a nutshell, trade in your old gas guzzling car or truck (must have been manufactured after mid-1984) toward a brand new one that guzzles a little less and get a $3,500 to $4,500 discount off the new one, as long as the sticker is under $45,000.

Your old vehicle will be shredded or crushed to get it off the road. You will need to have owned and insured/registered it for at least the past year to be eligible. The details are laid out on the last page of the PDF below.

Overall this will probably reduce pollution somewhat and give a slight nudge toward alleviating the recession.

Source: NHTSA (Txt, PDF)