Archive for the ‘auto sales’ Category
July 23rd, 2009 | 
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Cash For Clunkers
The aim of the cash for clunkers program which is due to start tomorrow, July 24th is to tempt would be buyers into trading in their old gas guzzlers for a new greener model, which will hopefully help the environment, and also will give some momentum to the stalled economy.
The vehicle that’s going to be traded in has to meet certain requirements, one of which is that it’s not more than that twenty five years old, and the new vehicle mustn’t cost more than $45,000.
The program, which is officially known as the Car Allowance Rebate System, will continue until $1 billion in rebate credits are reported, or Nov. 1st whichever comes first.
The program might triple or even quadruple the trade-in value of a real clunker, meaning one that would normally only fetch $1,000 to $1,500 from a dealer, but if the book value of the car or truck is more than the $3,500 or $4,500 then the program probably won’t help you.
Dealers are really excited about the program, and it’s easy to understand why when you consider that the U.S. auto sales annual rate was 9.69 million cars and light trucks in June, down from 9.9 million in May and 13.7 million in June 2008.
Chrysler Group LLC just announced that it will be offering new-car buyer’s incentives of as much as $4,500 in cash, and those who qualify for the maximum credit under the clunkers initiative will receive $9,000.
The incentive runs from tomorrow through Aug. 31 and covers most 2009 Chrysler, Dodge and Jeep models.
Some Tips If You’re Thinking Of Trading
1) Don’t drive your clunker to the dealer’s lot.
2) Negotiate on the price of the new vehicle first, and only when that’s finished, mention that you have a clunker to trade in.
3) If the salesperson tells you that cash-for-clunkers rebates are only available if you pay the sticker price, then don’t believe them. The opposite is true, and you’ll get less than the full value of the government credit if you pay the sticker price.
4) Carefully review the sales contract to make sure you haven’t bought services that you didn’t want, and make sure that the final numbers, including the monthly payment, match the negotiated price.
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Facts For Working People: 'Free markets' and global wealth
In a new paper, Ricardo and Robert Fernholz have updated research on the distribution of global household wealth (Wealth distribution without redistribution, 27 February 2012, www.voxeu.org). I have reported on this in …
Daily Kos: Fed: Household wealth plummets 23% in two years
www.dailykos.com3/26/11
NEW YORK (CNNMoney) — The average American family's household net worth declined 23% between 2007 and 2009, the Federal Reserve said Thursday. A rare survey of U.S. households, first performed in 2007 but …
According to the Federal Reserve’s Flow of Funds report today, net worth for households and non-profit groups decreased from $51.7 trillion in the fourth quarter to $50.4 trillion, which is the lowest level since 2004.
U.S. household wealth fell in the first quarter by $1.3 trillion, extending the biggest slump on record, as home and stock prices dropped.
Real-estate-related household assets decreased by $551.1 billion, which follows a $974.5 billion decrease in the fourth quarter, and mortgage borrowing was unchanged from January through March.
As wealth evaporated, Americans cut back on spending, and saved more, thereby blunting the effect of the tax breaks and income supplements provided by administration’s stimulus plan.
Retail sales did rise in May for the first time in three months, but the increase was solely due to people returning to automobile showrooms looking for bargains.
The economy contracted at a 5.7% annual rate in the first quarter, and consumer spending rose by 1.5%.
