'Cash for clunkers' program may be shelved

I am in the Auto Wholesaling business and I can tell you I knew this Cash for Clunkers program would be a screw job for the public, and the dealers. So now the Government has suspended it and dealers are anxiously awaiting word if their deals will be funded and honored. Personally, this program has damaged my income and potential income greatly. I have seen more than 50 trade-in vehicles at my dealerships that would ordinarily be wholesaled by the dealer to us, which we then sell to other small used car retail dealers. We make a bit of money, the dealer we sell to makes a little money when they retail these "economy" cars, the salesperson makes a little money and the lower income folks who have little or no access to financing in these extremely tightened lending times, are able to purchase a car. The car  is "recycled" from one owner to someone else who needs it to get to work, or use it for work in the case of these old trucks etc. that make up the bulk of the CFC trade-ins. This will reduce the supply of these low cost economy cars in the available marketplace and the little guy with little income and the least options available to him in purchasing a used vehicle will be the one hurt.

The vehicles engines must be disabled by having acid poured into the running engine until it seizes, and then an authorized salvage agent picks up the car and has it crushed. How wasteful.  I have lost potentially thousands and thousands of dollars to this program and other small business people like me have as well. In Mr. Fix-It's effort to save the planet, he expends tax-payer dollars and shows just how inept the government is when they try and inject themselves into areas best left to the private sector. This program is however good for a couple of things.

 1) It illustrates and proves just how vibrantly the American people and businesses are that can respond to an incentive. This further illustrates the folly of the Stimulus plan. All we needed was a 50% cut in all taxes across the board for 2 years, and ensuring that the 2010 Bush Cut expiration is extended and made permanent. This would have spurred and stimulated activity and investment in just the same fashion as CFC program did. It would have worked without burdening our children and grandchildren with the multi-generational debt, deficits and the abject failure of the Coalition of the Clueless (Obama, Peelosi, Reid, Geithner, Frank, Biden, Waxman etc.) and their ineptitude.

2) The market will respond to consumer demand. Hybrid vehicles have had greater purchase incentives than even the CFC program. They have all failed to provide any meaningful increase in sales. In fact, Hybrid sales are a disaster. Uncle Sam offers you on a 2009 Nissan Altima Hybrid a $2350 Tax Credit.  You also get a local Sales Tax rebate has been enacted that is part of the stimulus program, so in the case of  the Altima in Washington selling for $34,280 you would get back about $3,153 for that alone. Nissan offers up to $3,000 in Cash Rebates. So that would mean $8,503 in Govt. tax rebates/credits plus dealer incentives for the purchase of a 2009 Nissan Hybrid Altima. In honor of the recently departed Billy Mays…. BUT WAIT!   There’s more!  I am using MSRP for pricing these vehicles are becoming nothing more than ship anchors and I bet you could get another 3 Thousand off MSRP just get the thing cleared off their lot. What is my point in this? Simply this, Americans will buy what they want, not what the Government wants them to buy. They still want SUV’s and Trucks, and they are buying them with or without the Cash-For-Clunkers incentive. Visit a dealer’s lot and check out their supply of Toyota Prius and any other Hybrid model. I guarantee you that you will have the best selection to chose from of any other models on their lot. Regardless of the greatest incentive in the market place. This is why Chrysler and GM will fail as long as the Government is controlling them. Thy must make and sell what people will buy. No amount of incentives are currently pushing Hybrids off the lots.

3) It sho