Because Joe Biden looks like a greasy car salesman, no offense intended to the car salesman, doesn't make this next scheme any better than the last one!
Cash for Clunkers 2: The Return of Government Motors
March 29, 2011
chevy_volt2
The Obama administration and their friends on Capitol Hill are floating around a proposal to change the $7500 tax credit for green vehicles. This change can be found not only in President Barack Obama’s budget but also a bill proposed by Senator Debbie Stabenow, Michigan Democrat.
Edmunds.com, a 45 year old trade magazine company that provides automotive information, posted a Department of Energy document listing the department’s funding highlights. The proposed Obama Budget, changes the existing $7,500 electric vehicle tax credit “into a rebate that will be available to all consumers immediately at the point of sale.”
Essentially, if one were to buy a $41,000 Chevy Volt, the buyer gets a $7,500 coupon, so the final price is $33,500. In the end, the auto dealer assumes the risk of the government giving them this tax credit.
Is the United States really prepared to deal with another tax payer paid for deal that will only benefit the now government owned GM? After all, did Cash for Clunkers part one really work out for the tax payers and auto dealers?
Edmunds is using sticker price - Consumer Reports reported the one they tested came in at $43,700 plus an additional $5K dealer profit - for an out the door price of $48,700 before the $7500 rebate was applied - which would bring the cost of purchasing the car to.............around $41K - or about the same amount as the sticker. Kind of funny how that whole $7500 risk the dealer is taking from getting that rebate back from the government is included in the total cost of the car, isn't it?
In other words, GM was desperate for customers for what they perceived would be an unpopular vehicle before one even hit the road. It had hoped to lure more if buyers subtracted the $7,500 from the $41,000 sticker price. Instead, as Consumer Reports found out, the car was very pricey. The version they tested cost $43,700 plus a $5,000 dealer markup ("Don't worry," I can hear the salesperson saying, "you'll get more than that back in your tax credit!"), or a whopping $48,700 minus the credit.
The government must really think we are stupid because they keep replaying the same stupid shell games. I'm in the businesss and all it did was to make cheaper used cars harder find and more expensive when the supply went down. I thought these brainiacs were for the "little people" rofllol
The left is angry because they are now being judged by the content of their character and not by the color of their skin.
Nmysys wrote: Is the United States really prepared to deal with another tax payer paid for deal that will only benefit the now government owned GM? After all, did Cash for Clunkers part one really work out for the tax payers and auto dealers?
You didn't provide a link, but are you sure the rebate would only apply to GM?
That wouldn't make sense because the $7500 tax credit applies to all brands of electric cars, and all hybrids have a credit too (up to a maximum number of cars sold).
Regardless, it doesn't sound like Cash for Clunkers since that program applied to the trade-in.
