Cash for Clunkers - Good or Bad Idea?

4110 messages, Last post on Nov 23, 2009 at 11:42 AM

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What is this discussion about? Legislation, Truck, Sedan, Wagon, SUV

For questions about how the program works or to discuss program details, please visit our discussion titled, "Cash for Clunkers - Does it Work for You?"

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#3983 of 4110 Re: White House and Obama lash out at Edmunds for CFC info ! [kdhspyder] by newdavidq Nov 02, 2009 (7:43 am)
Replying to: kdhspyder (Nov 01, 2009 6:30 pm) News item: (AP, not Fox news) ap Ford surprises with $1B profit; sees profit in '11 Ford surprises with earnings of nearly $1B in 3rd qtr; forecasts 'solidly profitable' 2011 Looks like some of the money went to Ford (Chrysler and GM too). Gosh, I wonder if the government might think it would be a good idea to do another CFC. Replies to this message: kdhspyder (Nov 02, 2009 2:25 pm) nbdeuce (Nov 02, 2009 6:35 pm) bpraxis (Nov 02, 2009 7:19 pm) kdhspyder (Nov 02, 2009 8:27 pm) and 5 more...
#3984 of 4110 Re: White House and Obama lash out at Edmunds for CFC info ! [gagrice] by kdhspyder Nov 02, 2009 (11:12 am)
Replying to: gagrice (Nov 01, 2009 5:23 pm) What both you and vinnyny miss is that since auto sales are almost always done on a commission basis the tax rates for a commissioned sales person or manager varies from month to month. It is absolutely true that from the end of 2008 to June of 09 auto sales were in the pits and those that survived barely did so. Auto sales people with very few exceptions make much more than $30000 in these horrendous times. That's about $2500 per month. However when a sudden bonanza comes along out of the blue and that $2500 month becomes a $10000 month the withholding for that person jumps up as if he or she made $10000 every month. If the typical sales person was being taxed at 15% in withholdings but suddenly hits a $10000 month the withholding rate jumps up to 30-35% or more. Uncle Sam wants his share of the bonanza right away. If the month is a $12000 or $15000 month then our Uncle gets even more. Then there's state and FICA withholdings to be considered as well. Normally these are fixed rates. But 6% and 15% of a $10000 month is a lot more going back to the States/Feds than of a $2000 month. Where did the money from the Tax Credit go? It's pretty easy to find it if you understand the process. Mainly the money stayed at the local level at the dealerships, sales personnel, managers, their suppliers and the junkyards that took in the dead clunkers. The elegance of this program is that it put money into system right at the point of sale so that it would be used immediately and turned over immediately downstream to other small businesses. A good part of the money was immediately sent back to State and Federal treasuries in the form of Sales taxes and increased withholdings. Replies to this message: gagrice (Nov 02, 2009 1:30 pm) vinnyny (Nov 07, 2009 7:12 pm)
#3985 of 4110 Re: White House and Obama lash out at Edmunds for CFC info ! [gagrice] by kdhspyder Nov 02, 2009 (11:16 am)
Replying to: gagrice (Nov 01, 2009 7:07 pm) The application of the tax credit rebate is a state issue. Take it up with your local authorities. In this area rebates are always deducted after the application of the tax rate so the states get the full rate on the full transaction price.
#3986 of 4110 Re: Cash for Clunkers for the Rich ! [gagrice] by kdhspyder Nov 02, 2009 (11:23 am)
Replying to: gagrice (Nov 01, 2009 8:00 pm) True this. We have to look at the year as a whole. In the first 6 months SAAR was looking like it would be 9.5 to 10 MM units from all reports including Edmunds article.
#3987 of 4110 Re: White House and Obama lash out at Edmunds for CFC info ! [kdhspyder] by gagrice Nov 02, 2009 (1:30 pm)
Replying to: kdhspyder (Nov 02, 2009 11:12 am) the withholding for that person jumps up as if he or she made $10000 every month. I am very familiar with that flaw in the tax system. I worked 3 weeks straight then was off 3 weeks straight without pay. So when they did our tax deduction it appeared that I made twice as much as I actually made. You have a couple options. Let Sam hold your money and get it back at the end of the year or change your dependents to compensate. Now getting back to the amount actually coming back in taxes. The salesman makes $1000 on a $20k car. 20% of that was a gift from the government. That means the taxes you pay going back to the IRS is in the area of $60 per C4C sale. The dealer may kick in some if he has a poor CPA which is doubtful and sales tax in the few states that collected it. I'm happy that you were given a little extra by C4C. That still does not make it good for America. Far more people are out of work in the housing industry as a result of the recession. Nothing in the Stimulus will help them. The First time home buyer credit went mainly to foreclosed houses the banks were willing to finance.
#3988 of 4110 Re: White House and Obama lash out at Edmunds for CFC info ! [srs_49] by kdhspyder Nov 02, 2009 (2:23 pm)
Replying to: srs_49 (Nov 02, 2009 5:17 am) The purpose of the speculation was to show how wide-ranging the effects of the stimulus was. It was in no way meant to be all-inclusive. It was meant only to show a few examples of how many different benefits could be developed. It showed several example of 'where the money went'. Yes a good part of the bump in earnings may have gone to catching up on or getting ahead of debt. Replies to this message: srs_49 (Nov 02, 2009 2:27 pm) kdhspyder (Nov 02, 2009 2:30 pm)
#3989 of 4110 Re: White House and Obama lash out at Edmunds for CFC info ! [newdavidq] by kdhspyder Nov 02, 2009 (2:25 pm)
Replying to: newdavidq (Nov 02, 2009 7:43 am) Guess who's first in line with his hand out when companies make profits? Uncle Sam. Replies to this message: nbdeuce (Nov 02, 2009 6:35 pm) bpraxis (Nov 02, 2009 7:19 pm) kdhspyder (Nov 02, 2009 8:27 pm) nbdeuce (Nov 03, 2009 3:08 am) and 3 more... andre1969 (Nov 03, 2009 5:43 am)
#3990 of 4110 Re: White House and Obama lash out at Edmunds for CFC info ! [kdhspyder] by srs_49 Nov 02, 2009 (2:27 pm)
Replying to: kdhspyder (Nov 02, 2009 2:23 pm) Correction - "The purpose of the speculation was to show how wide-ranging the effects of the stimulus ~~was~~ could be" Replies to this message: kdhspyder (Nov 02, 2009 2:30 pm)
#3991 of 4110 Re: White House and Obama lash out at Edmunds for CFC info ! [srs_49] by kdhspyder Nov 02, 2009 (2:30 pm)
Replying to: srs_49 (Nov 02, 2009 2:27 pm) In some cases was and in some cases could be, agreed.
#3992 of 4110 Re: it's all good [nbdeuce] by explorerx4 Nov 02, 2009 (4:05 pm)
Replying to: nbdeuce (Nov 02, 2009 3:01 am) when i look at the newpaper ads and check incentives, etc, i see some good deals. depending on what vehicle you are looking at, i guess sticker could be the asking price. so what are you looking at?