Why CARS (Cash For Clunkers) Won't Come Back

Mark Tapscott, over at the Examiner (http://www.examiner.com/examiner/x-12977-Cars-Examiner~y2009m7d31-How-long-before-CashforClunkers-becomes-a-permanent-federal-entitlement) , predicts that the cash-for-clunkers program (CARS) will be extended indefinitely because it is popular, and gives the Obama administration another way to spend money.

I disagree.  I think that if Congress extends CARS (doubtful), it will be a one-time shot.  The main reason is that there are still fiscal conservatives in Congress--the Blue Dog Democrats and the Republicans will team up to end the program.  The  Greenies won't support an extension because the current program, being a compromise, watered down the original premise of forcing people to trade up only to high-mileage cars.

CARS was fun while it lasted, but I predict it will shortly be as dead as one of the engines in my previous post.

Video: Cash For Clunkers Engine Death

Here is a video from a CARS program engine disablement (sodium silicate solution instead of oil) of a Jeep Grand Cherokee. The engine fights long and hard, but dies in the end.



This Volvo S80 looks like a nice car, I'm amazed it qualified. Maybe it had major issues, like a bad transmission, or something. Still, what a waste. The engine sounds almost like it is sad to go.



This Oldsmobile looks more like a heap. The engine starts out sounding throaty, then dies with a mousy squeek.

Video: Kid Freaks Out (A Little)

A rich kid gets a surprise birthday present--a beat up pickup truck. He gets mad because he'll look like a "poor kid" if he drives it. He gets a baseball bat...



Now, I don't think he's 100% serious, because if you notice, he doesn't damage the glass or the front end. He just beats up on the bed side a little.

Mahindra Planning A CUV For U.S.?

I was looking at Mahindra's North America web site (http://www.mahindrana.com/indian-cars-and-trucks.html) , which advertises its two door and four door diesel pickups (planned for fall of 2009), and its SUV, promised for 2010. 

If you click on "future vehicle", you see an artsy picture of what looks like a minivan, or perhaps a crossover, called the MUC.   I suspect this is a version of the Xylo (see http://www.lnkr.net/archives/prem/technology/mahindra-xylo-more-images/2011 for photos) which is something like short minivan with swinging doors.

Mahindra is talking big, I wonder if they will deliver?

CARS: Watch The "Doc Fee" Trick!

Joe over at MyFordDreams2 was talking to a Mercury salesman about the CARS (aka cash for clunkers) program, and the guy tried to tell him that there was $50 documentation fee.

As I posted previously, (see here) and I'll do it again as a public service:

Dealers are not allowed to charge fees to customers to participate in the CARS program. If you dealer tries to do so, above and beyond their standard fees, they are trying to cheat you.

The proof is here, from www.cars.gov/faq:

Can dealers charge me a fee for buying or leasing a vehicle under the CARS program?

While dealers can charge their normal types of fees, the CARS Act specifically prohibits dealers from charging a fee for purchasing or leasing a vehicle under the program.

Why NUMMI Is Probably Closing

With GM out, Toyota has to decide if it wants to keep NUMMI going.  Here are a few reasons why they won't.

• NUMMI is the most expensive, labor-wise, of any of Toyota's plants in NA (Detroit Free Press)
• The Corolla is also built in Canada, at the TMMC plant
• The Tacoma is also built in Mexico, in Tijuana.

Cash For Clunkers Details

In addition to the already released rules, some additional details have been posted by NHTSA at the www.cars.gov web site:

• Only one voucher per customer.  You can't trade in 2 cars for 2 vouchers for 1 new car. 
• Leases may be purchased with the voucher, however, the least must be for at least 5 years.
• Dealers can not charge extra fees such as administrative fees for the CARS program.
• Customers may have to pay sales taxes on the voucher amount, depending on state law.
• The CARS voucher is on top of other incentives from the manufacturer (dealers can't keep the manufacturer incentives back)
• The CARS voucher is in addition to other government programs, such as the hybrid vehicle credit.

So, if your dealer tries to charge you an extra "doc fee" for CARS, call him out on it.