Using the Cars Allowance Rebate System (CARS), the government killed two birds with one stone.
On one hand, they brought the consumers back to the auto showrooms and made them spend money, sans the rebate of course. On the other hand, the administration ensured that the old, low mileage clunkers made way to the new, more environment-friendly hatchbacks.
An economist will also tell you how much it affects the foreign exchange reserves of a country favorably when you burn less gas and, thereby, import a reduced amount of fuel.
On the micro level, the auto manufacturers, the dealers, the auto part suppliers, and the vendors benefited from increase in business. The customers reaped the advantage of rebates that ranged from $3500 to $4500.
Reduced donations for charities
However, amid all this optimism, charities that rely on vehicle donations for funding have no reason to rejoice. The answer is not too far to seek. The potential donors went ahead and traded their old cars for new ones under the CARS program.
The program is thus a crushing blow for charities which use car donations to generate capital for their operations. Mission Solano in Fairfield is exactly in this business. The cars donated to them are sold off to provide funding for the mission.
Mission's director, Raymond Courtemanche, said of the present scenario, "We've seen a huge, about a 40% decrease in vehicles that's come onto our lot so it's having a significant impact."
Courtemanche added, "You can't compete with someone who is buying them for $4500, you know you can't compete with that so we've become a competitor with our government."
The story of Dallas-based charity, Texans Can, is no different. The charity serves at-risk teenagers and their families. Texas Can has reportedly lost $75,000 to the clunkers program.
John List, an economics professor at the University of Chicago opined, "It is logical that many charities would be hurt. But it's intuition right now. All the experts are guessing."
cashforclunkersfacts
You can buy or trade in both domestic and foreign vehicles so not just the US made cars.
Jimhenry
Blogger
www.cashforclunkersfacts.info
http://www.cashforclunkersfacts.info
ENERGY
THE MORE ENERGY WE SAVE, THE BIGGER THE WELFARE LINES. LOOK AT YOUR HOUSE, MUCH ENERGY IS NEEDED TO SUPPLY YOU WITH ALL THESE ITEMS. THE MUSLIM NATION CONTROL ENERGY, PETROLEUM, COAL AND WATER. THIS NATION RUNS ON TRANSPORTATION AND THE TRICKLE DOWN AFFECT. THIS MEANS ENERGY IS HIGH PRICED, THIS MEANS NOBODY BUYS, LIKE WHEN ENERGY, MAINLY PETROLEUM, WAS REAL CHEAP AND CARS WERE BEING BOUGHT BY EVERY ONE. MANUFACTURES WERE IN HEAVEN, NOW THERE IN HELLY. THIS NATION RUNS ITS ENCONEMY ON ENERGY. IF WE RELY ON FORIGEN ENERGY, WERE LOST. U S SHOULD START NOW TO BUILD MORE REFINERIES, THEN WATCH THE MUSLIN OIL PRICE GO DOWN. I GUESS IF YOUR'E A DORK, YOU CAN SEE IT. OUR SO CALLED LEADERS, I DON'T KNOW WHAT THEY ARE?
NOT Intuition
The last 3 cars from our family were each donated to charities specifically because this was better than trading them in. Car dealers did not want my older clunkers at the time and therefore were not really offering anything in trade in value. What they claimed to be giving me was simply added to the price of the new car and what they got at auction would simply be added profit for them. Instead of giving away the cars to dealers and the dealer marketplace directly I passed them through charity donations. Used car dealers ended up with them (except the one that went straight to a needing family) at auction. Had Uncle Sam offered me $4500 instead of a tax deduction you can bet your boots I would have taken the $4500. This is NOT intuition it is fact.
Post new comment