I was just thinking, car dealers and manufacturers often have rebates equaling the Cash for Clunkers program. Why are those not as successful?

I was just thinking, car dealers and manufacturers often have rebates equaling the Cash for Clunkers program. Why are those not as successful?

Because it comes out of their pockets and not the governments and therefore isn't advertised as heavily.

Because it comes out of their pockets and not the governments and therefore isn't advertised as heavily.

 

I wonder if there was a net decrease in the prices consumers paid compared to a year ago or what not. No need for dealer or company incentives, so they made more, but I wonder if consumers actually paid less.

A lot of places had incentives on top of the CARS program for as much as $8500 off of sticker price.

I wonder if there was a net decrease in the prices consumers paid compared to a year ago or what not. No need for dealer or company incentives, so they made more, but I wonder if consumers actually paid less.

Well, wait, I need to clarify I guess. $4500 for clinkers - that's a trade in. You're not going to get that for a typical car. That's why. Plus it was promoted with TARP money - yes even the advertisements.

 

Well, wait, I need to clarify I guess. $4500 for clinkers - that's a trade in. You're not going to get that for a typical car. That's why. Plus it was promoted with TARP money - yes even the advertisements.

I thought it was stimulus money, not TARP money?

I was just thinking, car dealers and manufacturers often have rebates equaling the Cash for Clunkers program. Why are those not as successful?

I think the answer is this...regardless of the sticker price, there's always some price level that an auto manufacturer is looking to get at a particular time on a particular vehicle. If you're willing to put in the negotiating effort/time, you can get in that price area.

 

Here, you were still able to get in to that price area, but you got an extra couple thousand dollars from the government on top of that for getting an older car off of the road. Thus, I think you could actually undercut the price you'd pay, for example, if you went shopping today.

I thought it was stimulus money, not TARP money?

The cash for clunkers was stimulus. But I betcha that the advertising dollars came from the original "bail out" money, or TARP.

The cash for clunkers was stimulus. But I betcha that the advertising dollars came from the original "bail out" money, or TARP.

I'd rather have it come from the TARP funds than the stimulus funds anyway.

I'd rather have it come from the TARP funds than the stimulus funds anyway.

Well, yea, I guess. It doesn't really matter. It's just ironic that the government was advertising their own programs, sort of, with tax payer money. Here's $4500 of tax money, being paid for by tax money, advertised by tax money, ... all for your CAR! It's just weird.

But when it is the car dealer offering $4,500 incentives to buyers, we yawn and walk away. Perhaps we found something the government is better at than private industry

But when it is the car dealer offering $4,500 incentives to buyers, we yawn and walk away. Perhaps we found something the government is better at than private industry

Because everyone knows those "Incentives" are things that are available almost any time. Or at least something very close to them.

But when it is the car dealer offering $4,500 incentives to buyers, we yawn and walk away. Perhaps we found something the government is better at than private industry

 

because buyers got the normal dealer incentives plus the $4,500. hard to say no to that.