Cash for Refrigerators?

Discussion in 'Current Events' started by Immanuel, Aug 24, 2009.

  1. Immanuel
    Offline

    Immanuel Gold Member

    Joined:
    May 15, 2007
    Messages:
    16,823
    Thanks Received:
    2,210
    Trophy Points:
    183
    Ratings:
    +2,224
    Latest in Stimulus: 'Cash for Refrigerators' - Yahoo! News

    From what I have read about the Cash for Clunkers program, a great number of auto dealers have not been paid for the Cash for Clunker sales they made recently and I question if they ever will be paid.

    So, I have a question, if Cash for Refrigerators is up next will department stores be scrambling to make these sales wondering if they will be paid in the next six months or so, if ever?

    Cash for Clunkers has run out of money already and auto dealers have not been paid. Will they get paid or will the government renig on the promise and if so, who ends up on the losing end... the dealers or the consumer? Will these cars be repo'd for non payment if the government doesn't come through?

    Immie
     
  2. chanel
    Offline

    chanel Silver Member

    Joined:
    Jun 8, 2009
    Messages:
    12,130
    Thanks Received:
    2,746
    Trophy Points:
    98
    Location:
    People's Republic of NJ
    Ratings:
    +2,749
    I'm not positive immie, but I think the rebate will go to the consumer; not the retailer.
     
  3. Jay Canuck
    Offline

    Jay Canuck by Crom you'll pay!

    Joined:
    Jul 30, 2009
    Messages:
    3,090
    Thanks Received:
    212
    Trophy Points:
    48
    Ratings:
    +212
    [SIZE=+1]Cash for Clunkers ending[/SIZE]
    They sold 457,000 cars with $1.9 billion in rebates
    Link
    Excerpt:
    The $3 billion Cash for Clunkers program will shut down on Monday, the government said Thursday. Officials decided to wind down the program, which Congress passed to spur flagging auto sales, after determining that it would soon run out of money. The program proved wildly popular, running through its initial $1 billion in its first week and leading lawmakers to approve an additional $2 billion in funding on Aug. 7.

    So it's a little expensive, but we should ask, [SIZE=+2]"Compared to what?"[/SIZE]
    [​IMG]
    Bush gave Colgate [SIZE=+1]$300M[/SIZE] and who did they hire? Nobody!
    [​IMG]
    Bush gave his crooked Enron friends [SIZE=+1]$772M[/SIZE] and who did they hire? Nobody!
    [​IMG]
    Bush gave Ford [SIZE=+1]$5.5 billion[/SIZE] and who did they hire? Nobody!
    [​IMG]
    Bush gave GE [SIZE=+1]$5.3 billion[/SIZE] and who did they hire? Nobody!
    [​IMG]
    Bush gave IBM [SIZE=+1]$2.5 billion[/SIZE] and who did they hire? Nobody!
    [​IMG]
    Bush gave Microsteal [SIZE=+1]$7.2 billion[/SIZE] and who did they hire? Nobody!
    [​IMG]
    Bush gave the crooks at WorldCom [SIZE=+1]$4 billion[/SIZE] and who did they hire? Nobody!
    Bush gave those corporate robbers [SIZE=+3]$25.5 billion[/SIZE] and who did they hire? [SIZE=+3]Nobody![/SIZE] But when Obama gives a half a million families new, fuel-efficient cars while saving tens of thousands of jobs
    for [SIZE=+3]$3 billion[/SIZE] the right-wing loons go crazy and make the president out to be some socialist big spender.
     
    • Thank You! Thank You! x 1
  4. Immanuel
    Offline

    Immanuel Gold Member

    Joined:
    May 15, 2007
    Messages:
    16,823
    Thanks Received:
    2,210
    Trophy Points:
    183
    Ratings:
    +2,224
    None of that applies.

    Auto dealers have not been paid. Will they be paid? If they are not paid, who is going to foot the bill?

    Do you realize if the contracts were written so that the consumer (read the fine print) is responsible for payment of the $4,500 and the government doesn't make that payment and forces the banks/dealers to repo those cars, then the consumer will be out not only the new car purchased, but they will not get their old cars back.

    I'm not saying that this will happen. I'm simply asking the question. I didn't buy using the Cash for Clunkers program, so I have not seen a purchase agreement written up under this plan, but I highly doubt the banks/dealers left themselves open for lack of payment under this plan. Which means that it will be the consumer who takes the hit and the only ones who will win will be the Repo Men.

    Immie
     
  5. Immanuel
    Offline

    Immanuel Gold Member

    Joined:
    May 15, 2007
    Messages:
    16,823
    Thanks Received:
    2,210
    Trophy Points:
    183
    Ratings:
    +2,224
    For the clunkers or the refrigerators?

    My understanding is that the auto dealers are the ones who are receiving the payments on the Cash for Clunkers program. Of course, they more than likely reduced the amount they offered for the trade-in by as much as they could get away with and they probably wrote the contract as if the "Cash for Clunkers" Cash was a down payment, which means if they don't receive the payment then the consumer is on the hook for it.

    Immie
     
  6. Jay Canuck
    Offline

    Jay Canuck by Crom you'll pay!

    Joined:
    Jul 30, 2009
    Messages:
    3,090
    Thanks Received:
    212
    Trophy Points:
    48
    Ratings:
    +212
    "I highly doubt the banks/dealers left themselves open for lack of payment under this plan. Which means that it will be the consumer who takes the hit and the only ones who will win will be the Repo Men."

    I have to agree with you here....it is always the consumer that takes the hit one way or another.
     
  7. Immanuel
    Offline

    Immanuel Gold Member

    Joined:
    May 15, 2007
    Messages:
    16,823
    Thanks Received:
    2,210
    Trophy Points:
    183
    Ratings:
    +2,224
    I'm not insinuating that the government will renig, but if I had purchased a vehicle with the program, I would want to know where I stand if the government doesn't pay. I have read too many cases where the dealers don't pay the loan off on a vehicle they take as a trade in and the person who traded it in gets left on the hook for it later when it is too late to get the car back. I'd worry about this until I knew for sure the dealer was paid.

    Immie
     
  8. Jay Canuck
    Offline

    Jay Canuck by Crom you'll pay!

    Joined:
    Jul 30, 2009
    Messages:
    3,090
    Thanks Received:
    212
    Trophy Points:
    48
    Ratings:
    +212
    Never seen a fridge get repo-d though......
     
  9. Immanuel
    Offline

    Immanuel Gold Member

    Joined:
    May 15, 2007
    Messages:
    16,823
    Thanks Received:
    2,210
    Trophy Points:
    183
    Ratings:
    +2,224
    Ever watch "Operation Repo"?

    They repo some pretty strange things.

    It depends on whether this is a rebate that goes to the consumer or whether it goes to the retailer. If it goes to the retailer in order to bring the price down then I would question whether or not the retailers will go for this, if by some chance there is a significant delay in the Cash for Clunkers deal. If it is a rebate going to the consumer... well, I bought a computer once that had a rebate and it took me months to get that rebate... but I did finally. I'd be leary of buying something under this plan.

    I would suppose that the government could offer this as a tax credit to be deducted off next year's tax return, but I have not heard that is the case. That might relieve some of my doubts in regards to this.

    Immie
     
  10. MaggieMae
    Offline

    MaggieMae Reality bits

    Joined:
    Apr 3, 2009
    Messages:
    24,043
    Thanks Received:
    1,599
    Trophy Points:
    48
    Ratings:
    +1,601
    Tax credits for the purchase of energy efficient appliances has been in effect for quite awhile, but a direct rebate will put money back into the economy immediately, which is the purpose. Consumers continue to save, not spend. Which can be a good thing, but not in a bad economy.
     

Share This Page