For those of you that don't know yet, "Cash For Clunkers" is the most successful "economic help" program that the government has ever run!.
One more prof that if you give money to the people they *will* spend it, and more in the US, you don't have to be a smart guy to know that, instead of giving huge bailouts to GM do more of this type of initiatives, "Cash For Clunkers" is so awesome that ran out of money in just a couple of days!
The way it works (the program is likely to continue, obviously), is let say you own an old car (<1995) that does certain MPG (spend a lot of gas, basically american cars), in these economic times, you might not buy a new car, since, you know, it would hard to pay; but the government is running this program that will trade your old car for a 3,500USD - 4,500USD credit that way you can get the car you want at a more affordable price, and at the same time helping the economy, creating jobs (the industry need to produce more cars, the dealership to hire more salespeople), the environment (spend less gas), and you.
So this looks like a great deal right? hell yeah!, my brother had a car, bought it for 700USD, but the blue book says it value was 1,000USD, insurance for that type of car is expensive (bad car more accidents), also the car had a V8 engine thats like 50USD a week just on gas. So let say he goes and buy a Toyota Yaris with the CARS program, the Yaris starts on 12,205USD let say its 15,000USD after the dealer steal you some money ;) 11,500USD, even with the worse credit ever my brother would have to pay like 150USD a month for that car, and its more fuel efficient a Yaris today can live with 50 bucks a month on gas (I do that with my Scion TC), insurance is cheaper on that car, and the environment is happy and my bro has a new car :) that actually works! and has like -170,000 miles :D.
The program was supposed to run from July 1st to November 1st, but was delayed until July 24th, guess what? the program is out of funds already!!!, this is huge!, a billion of dollars just in days!
Ford and GM are the happiest kids of the month.
Now some politicians are skeptical with this program... is your obligation to send those people to STFU!
And BTW, my brother was in a accident 2 months ago (he is fine), and his car was totaled :(, the insurance company gave him not even a buck he ended trading the car for the towing ride, and guess what he doesn't have a car :(, and if you know Florida, you can't do nothing without a car.
If you wanna know more about the program go to www.cars.gov the program is likely to get more money.