If this paases I might consider voting Republican in Illinois next election

[IronWing]

Once in awhile even the stupid legislation benefits me. I have a gas guzzling clunker. As things stand right now I could probably sell it on craigslist for ~$700. If this bill passes I could sell it to someone looking to buy new for maybe $2000. Thank y'all!

New Automobile Voucher Act of 2009

One side issue: The bill doesn't require the new car to be American or North American made. I guess Rep. Manzullo is trying to avoid a trade war or trade litigation.

 

[LTC8K6]

They will not allow you to do that. There will be a provision about how long you have owned the vehicle, to prevent such transfers for profit.

 

[IronWing]

There isn't such a provision in either of the two bills being considered and such a provision would be contrary to the purposes of the bills which are 1) to sell new cars and 2) get cars like mine off the road.

 

[SirStev0]

good luck man, I am pulling for you. Junker car owners got each other's backs.

 

[teclis1023]

Let's hope this works better than France's Bonus/Malus experiment.

 

[sao123]

they should do this nationally.


however for this to truly be effective, they will have to figure out a way to maintain a steady pace of sales...
a surge followed by another drought, accomplishes nothing.
Maybe they should do it in waves?

 

[vi edit]

Manzullo is from Rockford, IL. A city that has been gutpunched by the implosion of Chrysler.

For what that's worth...

 

[vi edit]

With the way it reads, is the voucher payable to the dealer and not the customer? Meaning they essentially get the voucher with the option of it being passed on to the consumer?

 

[LTC8K6]

I'm still pretty sure I have read about a provision to prevent car flipping, but maybe it was in the early drafts?

 

[LTC8K6]

That thing is confusing...or maybe I am stupid.

Why bother with the vouchers program at all?

Just let the dealer handle it like any other vehicle incentive, except they get reimbursed for the money by the Gov't.

The vouchers are issued to the person buying the new vehicle. So the voucher would be specifically for you.

Seems silly. Just announce a new dealer incentive on certain new vehicles if you trade in certain old vehicles. The dealers can then get reimbursed when they actually complete the deals.

 

[Fern]

Originally posted by: ironwing
Once in awhile even the stupid legislation benefits me. I have a gas guzzling clunker. As things stand right now I could probably sell it on craigslist for ~$700. If this bill passes I could sell it to someone looking to buy new for maybe $2000. Thank y'all!

New Automobile Voucher Act of 2009

One side issue: The bill doesn't require the new car to be American or North American made. I guess Rep. Manzullo is trying to avoid a trade war or trade litigation.

Nope.

This is for NEW autos.

See Sec. 6 - Definitions:

(5) NEW AUTOMOBILE- The term `new automobile' means an automobile for which a manufacturer, distributor, or dealer has never transferred the equitable or legal title of such automobile to an ultimate purchaser.

The underlined part is the current definition of a new auto - the title has never been transferred.

So the "used" auto market (and you) is excluded from the voucher program.

Fern

 

[LTC8K6]

He's saying he can sell his used car for $2G to a person who will then use it to qualify for the voucher for a new vehicle.

It's worth $700 if he just sells it, but he can get much more for it from a person who is going to get a possible $4,500 voucher for it on a new vehicle.

So even though he doesn't want a new vehicle, he can still get a lot more cash for his used vehicle indirectly through the voucher program.

I think they will have to put up blocks to this sort of thing.

 

[Fern]

Originally posted by: LTC8K6
He's saying he can sell his used car for $2G to a person who will then use it to qualify for the voucher for a new vehicle.

It's worth $700 if he just sells it, but he can get much more for it from a person who is going to get a possible $4,500 voucher for it on a new vehicle.

So even though he doesn't want a new vehicle, he can still get a lot more cash for his used vehicle indirectly through the voucher program.

I think they will have to put up blocks to this sort of thing.

I need a little help here...

As I read the bill, the new car purchaser gets the voucher whether or not he buys the OP's used car.

In fact, the purchase of the OP's used car does nothing to qualify the new car purchaser for the voucher. (He or she would just have an over-priced, unwanted/unneeded gas guzzler on their hands.)

I.e., purchase of OP's used car is irrelenent to voucher program. I.e., OP gets no benefit from this voucher porgram.

Where am going wrong here, what I have missed?

TIA

(Edit: BTW did anybody else notice that is a $75 BILLION program? I.e., another huge 'bailout' to auto makers, including the foreign ones.

Is this an 'unofficial' part of the CAFE standards done to encourage agreement of the auto makers?)

Fern

 

[CPA]

Originally posted by: vi edit
With the way it reads, is the voucher payable to the dealer and not the customer? Meaning they essentially get the voucher with the option of it being passed on to the consumer?

yes, it's basically another bailout to the auto industry.

 

[JeffreyLebowski]

Originally posted by: CPA

Originally posted by: vi edit
With the way it reads, is the voucher payable to the dealer and not the customer? Meaning they essentially get the voucher with the option of it being passed on to the consumer?

yes, it's basically another bailout to the auto industry.

Except now while people wait for the program to start, they aren't buying cars.