Pork alert! Senate may vote on cash for clunkers as early as tonight

When discussing GM’s bankruptcy yesterday, Obama again mentioned that he wants to have a cash for clunkers program (though he used the pseudonym “fleet modernization program”) in place soon to help GM through their bankruptcy. So the Senate seems to be jumping all over itself trying to get a c4c program approved ASAP. In fact, CNN Money reported yesterday and the Detroit News reported today that the Senate may staple it to a tobacco regulation bill headed for the Senate floor as soon as tonight. CNN Money reports:

Attaching an auto provision to a bill giving new power to the FDA to regulate tobacco products may seem unusual. But aides and industry experts say Democratic leadership recognize the sense of urgency to passing the auto subsidy, and the tobacco bill is headed for a full Senate vote.

So, in other words, it’s pork, pushed through under the guise of expediency.

The one silver lining in this news is that, apparently, SEMA’s lobbying efforts have gotten through to Sens. Stabenow and Brownback, the proponents of the Senate legislation: They’ve included a 25-year age limit on the clunker being traded in.

Senators Stabenow and Brownback included the stipulation to help safeguard vehicles that may possess “historic or aesthetic value” and are irreplaceable to hobbyists as a source of restoration parts.

So good news to fans of cars from 1984 or earlier. Thanks, SEMA, for getting that provision wedged in there. Fans of cars newer than that (and I maintain that future car collectors fall into this category), well, you’re still SOL.

UPDATE (3.June 2009): Not to underscore my comments made yesterday, but this bill with SEMA’s 25-year provision might very well be the best we can hope for. Ideally, yes, we’d want to see cash for clunkers tabled and forgotten about entirely, but with Obama pushing for it, we can’t imagine that’ll happen. So a bill with a 25-year provision will be far far better than a bill without.

Also, the formal name of the Stabenow-Brownback bill is S.1135, the Drive America Forward Act. The passage pertinent to our interests is Sec. 2(i)(7)(C):

(7) the term ‘eligible trade-in vehicle’ means an automobile or a work truck (as such terms are defined in section 32901(a) of title 49, United States Code) that, at the time it is presented for trade-in under this section–

(A) is in drivable condition;

(B) has been continuously insured consistent with the applicable State law and registered to the same owner for a period of not less than 1 year immediately prior to such trade-in;

(C) was manufactured less than 25 years before the date of the trade-in; and

(D) in the case of an automobile, has a combined fuel economy value of 18 miles per gallon or less;

UPDATE (4.June 2009): Looks like Stabenow’s bill has stalled, due to some procedural wranglings. Also looks like Feinstein continues to promote her alternate bill.

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Color us stunned: Big-time media turning their backs on cash for clunkers

We could hardly believe our eyes while catching up on the news from over the weekend. No less than four major news sources wrote negatively about cash for clunkers, and on varying rationales.

* First, Brian J. O’Connor of the Detroit News writes about how he’d be the perfect potential cash for clunkers customer, with his deer-magnet 1995 Buick Roadmaster Estate Wagon, but decides against taking Uncle Sugar up on his offer, should it become reality.

But it’s not that simple, according to Jeff Bartlett, the deputy online editor for autos at Consumer Reports. You have to buy a new car with 4 mpg to 10 mpg better mileage to get the clunker coupon, which means a new car loan, too.

“Who’s going to be eligible for this?” Bartlett asks. “Chances are it’s someone using an old car because they’ve elected to live frugally or is doing it out of necessity. That type of person would typically gravitate toward a used car.”

Financial planners say a low-mileage 2- or 3-year-old car gives the most reliable service at the best price, since you don’t take the big depreciation hit that comes the second you drive a new car off the lot. The Clunker cash mostly covers that depreciation.

…

When it comes to Clunker bucks, “The person who benefits the most is the person who can pay cash,” Bartlett says, “but that person doesn’t drive a clunker.”

Well said, Brian and Jeff.

* The Guardian offered some criticism of c4c, though their main thrust is that the current proposed legislation isn’t strict enoug.

It should be clear that improving the fuel efficiency of one’s SUV from 15 to 20 mpg isn’t going to do much to deflect the damaging effects of expensive oil. What we want to do, then, is to encourage fuel efficiency without encouraging unnecessary automobile purchases or a shift away from transit.

And they proposed an alternative of raising the gas tax slowly over a period of years. Might be a hard medicine to swallow, but would we rather have crushing?

* The Huffington Post also criticized c4c in much the same vein, with more analysis on the MPG Illusion argument. Their solution - make c4c dependent on carbon emissions rather than miles per gallon. Noble, but that would require a federal emissions testing program or some means of measuring individual automobile emissions.

* Finally, Time’s David von Drehle writes on how he could take advantage of cash for clunkers to get rid of his family’s 2001 Honda Odyssey, but after considering it, finds himself strangely attracted to the van and its sentimental value. And isn’t that the root of car collecting and why we shouldn’t scrap vehicles willy-nilly?

* Of course, we’re far from out of the woods as far as this legislation goes. Apparently a group of U.S. senators, unhappy with cash for clunkers being rolled up into the Waxman energy bill, intend to introduce their own c4c legislation this week. And the AP reports that cash for clunkers may even jump to an emergency spending bill, though I haven’t seen that news elsewhere, so that may be a misunderstanding.

* It seems there’s a new site out there cheerleading for c4c at cashforguzzlers.net. We’re still trying to figure out who exactly is behind it and why. The WHOIS shows the site registered to Pasch Consulting Group, which has had several auto dealer clients in the past.

* Finally, we’d like to welcome theDailyGreen, an environment blog, to the c4c opposition. They object to the plan largely on the basis that it bails out SUV drivers, the greenies’ mortal enemy.

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The property will be sold at public auction as provided by Internal Revenue ...

There isn’t much information on the IRS auction site: “Under the authority in Internal Revenue Code section 6331, the property described below has been seized for nonpayment of internal revenue taxes due from Taxpayer. The property will be sold at public auction as provided by Internal Revenue Code section 6335 and related regulations.”

Ventura Classics has been around for about 20 years, but it looks like they’ve got themselves into a little Willy Nelson. No surprise there in this economy, and it could happen to anyone. But didja have to seize their ‘69 Charger Daytona?

According to Ventura, they have Govier documentation stating it’s one of 11 surviving four-speed Hemi Daytonas. They also say it’s the most heavily-optioned build, and one of three with the original engine.

And now the IRS is accepting sealed bids. I’ll be interested to see how it does. Seized vehicles seldom live up to their potential, but aside from the means by which it’s coming up for sale there’s no suggestion of funny business. Then again, the Hemi market is in disarray right now.

Until recently I would have said that $400,000 wasn’t unreasonable. But I haven’t seen this car in person, so I can’t judge the quality (the Interstate battery isn’t a great sign). Ventura was asking $269,750, which was either indicative of the quality, realism in the current market, or a need to sell the car in a hurry with the Feds breathing down their neck. Hmm.