Originally Posted By: PandaBear
I think this program will not crush efficient small cars that are old, but mostly the super well depreciated SUV and trucks that are still running fine but no one wants.
Guess which car will get crushed? a 96 Explorer? or a 94 Civic? Now guess what would happen to the market price of a 96 Explorer? therefore the market price of a 2006 Explorer, and 2006 Civic?
I think the fuel saving over 10 years between a small car and a large SUV should be more than 3.5k. So maybe we should raise gas tax to pay for it?
Maybe a better program is the government will pay you $3.5k to crush your old SUV and you pay it back in future gas tax comparable to how much you get from the government previously. Over 10 years you will get a new car while paying for the same for gas.
+1 PandaBear--
When I orginally posted the topic, I purposly left out the merits/downsides of gub'mint programs such as this. I am a libertarian at heart. It is clear that the US gov is intent on keeping US automakers going in some way, shape, or form. GM has been/is burning thru billions of your $$ already and they're still in the same or worse shape and nothing to show for it. If this type of program (or one even more incentive laden) would have been implemented before money was thrown at GM and Chrysler, how many vehicles could have been sold? The money GM and Chrysler is gone forever. It could have been spent retiring old, polluting, guzzling cars, and keeping GM, Chrysler, and Ford going until the economy turns around. My situation is exactly what the bill is targeting. A person that is willing and able to buy a new car if the price were lower, and replacing an old (16 yrs old) SUV that pumps out 8X and 10X the HC and NOX, respectively, of my 2005 Sienna, with a vehicle that will get better mileage and pollute far less, not to mention less CO2 as well. My S-10 SUV has been well maintained and I would have no problem in driving it another year or two. But to sell it---I would get $1500 max for it and it is rust free and has 118K on the odo. I don't have to have a new car. I am not inclined to buy a new car at this time. But I would if I could get $4500 off a new one. And it would be one made in the USA.
Again--I'm just sayin'---this bill would get me to buy a new car that I otherwise would not, and I suspect I would not be the only one.