Snowe says ‘clunkers’ mismanaged

Snowe says ‘clunkers’ mismanaged


Subsidies for car buyers who trade in gas guzzlers in limbo
By Mal Leary
Capitol News Service
Snowe

AUGUSTA, Maine — Mainers wanting some help from the government in buying a new car or truck may have to wait.

While the House approved $2 billion more for the “cash for clunkers” program before leaving Washington for a month-long break, the Senate has yet to act and recesses on Friday until after Labor Day.

Senate Majority Leader Harry Reid, D-Nev., told reporters Tuesday afternoon there are the votes to pass the additional funds before the Senate leaves town, but did not say when he will bring the measure to the floor for debate and a vote.

Sen. Olympia Snowe, R-Maine, said Tuesday she was unsure whether she would support the additional funding for the program, which she said has been mismanaged.

“I voted against it in the supplemental for the very reasons we are facing today,” Snowe said. “It had no thorough vetting and analysis and there was not one hearing on this and it was just tucked into the supplemental.”

Snowe said the program was passed as part of the measure funding the wars in Iraq and Afghanistan and was very poorly written. She said it needs to have an end date so that the costs can be contained.

“If we don’t, we could be looking at another bill appropriating a billion dollars again in a few months,” she said.

Snowe said she is outraged at the “mismanagement” of the program by the Department of Transportation. She said just four people have been assigned to process all of the claims from across the country.

“I have had dealers in Maine tell my staff they have to come back into the office in the middle of the night to file on the Web site because it keeps crashing,” Snowe said.

But, she said she believes there is an obligation to make sure there are funds to pay for claims “in the pipeline” and not leave dealers “holding the bag” because of the program.

“We are talking about ways to make this work,” Snowe said.

Under the program, vehicle owners may trade in their old models for new cars or trucks that achieve significantly higher gas mileage. The federal subsidies total up to $4,500.

The House passed bill would transfer $2 billion to the program from an economic stimulus account that had been set aside to subsidize renewable energy.

Sen. Susan Collins, R-Maine, had expressed several concerns about extending the program without any changes, but said Tuesday that she was convinced to support additional funding after DOT statistics were released on the average gas mileage on vehicles purchased under the program.

“The average increase in fuel efficiency under this program has been nearly 10 miles per gallon,” she said. “That is a significant increase. It shows that consumers are taking advantage of this program to trade in their old, inefficient cars and trucks for new, fuel efficient cars and trucks.”

Collins said there is no opportunity to make the program better because the House has recessed for the month. She said there are several changes that would make the legislation better, such as allowing a subsidy to buy a fuel-efficient used car or truck.

“This program in some ways excludes lower income consumers who may only be able to afford a used vehicle,” Collins said. “That’s a change I would like to see.”

Tom Brown, executive director of the Maine Auto Dealers Association, said dealers across the state have reported a significant increase in sales during July. He said while he has no statistics, he believes it was the federal subsidy that triggered the sales that had been well below average.

“We hope the Senate extends the program,” he said. “This has created some business and has also created some income to state and local governments from registration and taxes and in all it has been a boost to the economy.”

Snowe said the DOT had informed her that as of Tuesday $4.2 million in applications for the subsidies had been filed by Maine dealers.

Brown said the program does create more paperwork for dealers than they would normally complete for a sale. In addition to the documents that must be filed with federal officials for the subsidy, the vehicles that are traded in must be junked instead sold on the used car market.

Both of Maine’s representatives supported the additional funding last Friday.

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Comments
60 comments on this item

KEEP IT GOING. WE NEED THIS. I WANT TO GET RID OF THIS CURSE

We bought a new car that gets better milage when the gas prices went up. Now my tax money will buy cars for people who didn't bother or didn't care. Now that they get "free" money for a new vehicle. Guess our kids and grand kids will be paying more bills for us.

wow, we don't have enough time for this ...look how set "they" all are that "represent" us out there. despite all of the technology..they go on, NOT demanding justice, twiddling their thumbs while sooo many people are losing their homes, going hungry,-whole families becoming homeless, no healthcare, whole families living in their vehicles, being torn apart. (i've met 2 families within the past two weeks, living in their cars!).. meanwhile .. "Goldman Sachs to Make Record Profits & Bonus Payouts in 2009"

who is ever going to stand up for human rights, and right to our basic needs and desires in this time of such tremendous exploitation? friend of mine once said, "if you're not angry, you're not paying attention."

I for one find this program very helpful. I commute 92 miles each way and the gas is killing me. If I can get rid of my 17 mpg vehicle and get into something that gets 35-40 per gal. I can make my payment in the gas money I save. I have a daughter going to college in the fall and money is really tight right now. So I am hopefully going to take advantage of the program if it gets more funding!!! The gov. finnelly makes an effort to help the little guy and all they get is grief!!!

277houlton - where is the gov't getting the money? The fed debt is huge as it is... It's bitter sweet help. When the Gov't has to do this to bail out car sales and the economy, it's not a good thing for anyone.

Good for you Senator Snow.... Kill a program that works.

Socialism is great, free money and little cars, more government control but they have our best interest in mind...right?

Socialism is a wonderful thing comrade.

Let's keep spending all the money we don't have. My great,great, great grandchildren appreciate this. All the jobs Detroit shut down does the public actually think this will help make jobs.

If you like the "clunkers" program, you'll love the government run socialist health care.

At the rate we're goin our grandchildren will be living in a country called anything but the United States.

Hyprocracy on steroids.. she voted for it. She is a major player in putting the nation on a federal managed health care system. If the Feds can't run a $4 billion clunker program.. Ms. Snowe.. why do YOU think YOU can run a $2 Trillion health system? Mainers deserve better than Ms. Snowe who runs as a republican and always votes with the democrats.

"Snowe said the program was passed as part of the measure funding the wars in Iraq and Afghanistan and was very poorly written'.

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"Snowe said she is outraged at the “mismanagement” of the program by the Department of Transportation. She said just four people have been assigned to process all of the claims from across the country".

.

If memory serves me right, I believe Susan Collins made headlines for her involvement in creating this program.....

.

Another reason to stop funding for the program may be that FORD not GOV'T Motors has been cashing in like crazy on the program.

The only mismanagement of this program was when Snowe and her fellow dumb republicans cut back the $4 billion set aside to $1 billion because they didn't think anyone would really use the program. Because conservatives still think that everyone wants to drive gas guzzlers after several years of economic rape from the oil companies.

Howbri, the VA and medicare programs rate higher customer satisfaction then ANY private insurer. They are also more efficient, using only 5% of funds for administration compared to 30% for private insurers.

Susan, were you this upset about deficit spending when Bush funded a $1 trillion war in Iraq outside of the normal budget or when Bush and Paulson decided to bail out the banks to the tune of $700 billion with the TARP program.

It's government at it's finest. Pass a poorly written bill, that few of them read, that costs the taxpayers additional debt, that costs more money to "fix" later. So much that comes out of Washington, ends up the same way. The idiots in congress passed Cap & Trade before the bill was even written! Now they are pushing government health care through as fast as possible, mainly so that the people don't have the chance to find out what is really in it, and without knowledge of how fewer and fewer taxpayers are going to pay more and more for it. How much will it cost to "fix" the healthcare bill? Maybe that question should be asked before the world famous moderates Snowe and Collins vote for it.

I have two cars in my driveway right now so it is only fair that I pay taxes to help someone else buy a new car. From each according to his ability, to each according to his need... isnt that the Obama way? Seriously, what part of the United States Constitution gives Conresss the power to levy taxes so the proceeds can be used to buy things for other people?

Goldman Sachs, Citi and Bank of America all got theirs and now the little people get a subsidy to buy a new car. The Cash for Clunkers program constitutes 1/1000 of the bailout money paid by this administration (so far). If there is anything that should be traded in, it is the elected officials who brought us this irresponsible policy.

When I see Snowe, Collins, Michaud and Pingree, I will tell them to count me as one person who doesnt want to pay taxes to buy someone a new car... or bail out an investment bank run by some fat cat campaign contributors.

I'm happy that so many of you conservatives hate Snowe and Collins. Please, PLEASE, I beg you to run a true conservative against either of them in the primaries. Then we Democrats can have two more senators in our column when the "true conservative" loses the general election. Y'all live in a blue state people. Quit griping about or move to Oklahoma or Idaho.

I can not and have never been able to afford a new car...now I will have fewer choices when buying a used car because they are "junking" perfectly fine vehicles. Thanks--Nice work Washington.

this program has its pros and cons used car dealers are going to get hit hard because there is no trade in to resale Some folks do not want to get strapped with a car payment or just cant afford a new car. and then you have the used parts places that are going to take a hit anothter bailout for the big boy and the little mom and pop outfitt gets schrewed

Don't forget, many of those in the house & senate now, were there when Bush proposed the spending packages that the dems blame for all of the "fixes" needed now. They voted for the packages then that they are voting to "fix" now. Also remember while blaming Bush or Obama for the spending, they only propose spending. It's the senate that finally burdens us few taxpayers with their irresponsible actions. The above story is a prime example of just how irresponsible thay can be with other peoples money.

We the people need to demand that this spending STOP. This isn't a republican/democrat issue folks. It's survival of America as we have known it. Government needs to get out of the way of business and capitalism. That will get people working again. It works every time it is tried.

wondergrunion...first off, the VA and Medicare may rank higher customer satisfaction ratings, maybe. I would like to see those ratings by the way. But Medicare is almost out of money, just like Social Security, the USPS, Amtrak and every other program run by the federal government. I do not have a problem with the federal government running a program, I would just like them to run one, just one which can exist on the budget it has for one year like every other company/family out there. If I run out of money after several days, weeks or months I cannot go to my employer and say, "Hey, I ran out of money. Can you give me a raise so I can pay my bills?" It doesn't happen in the private sector and it shouldn't happen in the public sector because you and I are the employer!

Your second point regarding TARP and bailouts. The first round of bailouts was a program which then President-Elect Obama signed off on. It was passed by a Democratic controlled House and Senate. It was signed into law by a Republican President. Then President-Elect Obama approved the first round of bailouts and then when January 20th rolled around, a second round of bailouts was required for the auto industry. Since January 20th we as a country have increased the national deficit by 1,000,000,000,000. That is money which your children, grandchildren and likely great grandchildren will be paying for this program.

And as for living in a Blue State. It was not always that way. Things change, people get upset and colors change. It may not happen this election or the election after that, but it will change. Remember, wondergrunion the only constant in life is change.

When the State of Maine elected Obama they got what they elected. a big spending Democrat and a Big spending Democrat for a Congressman in the 2nd District. He don't care about the little people and how they are hurting. We need more people that care about the people that elect them. The programs that have been passed so quickly will hurt us and our children for years to come. When are going to stand up and say we elected the wrong people. Sen. Snowe and Sen. Collins vote on the Democracts dise most of the time so it just like having 2 more Democracts in the Sen.

277houlton - So you feel justified in taking money from me and many other Mainers, (TAXES), so you can have a NEW car. You can get out of that 17 MPG car right now and into a car that gets 35 to 40 MPG. AND the payments will be less than for that new car even with the rebate. It's called buying a USED car.

wondergrunion - The numbers are cooked on that satisfaction rating for the VA and medicare. Ask only those that actually use those systems and the "satisfaction" goes way down. As for medicare, just try and find a doctor taking it. And guess what, times to actually get an appointment at a doctors office if you tell them you are on medicare are MUCH longer than if you tell them you have private insurance or are self pay. And ask any veteran about the wait times for appointments and the "high quality" care they get! And that efficiency in administration is pretty much eaten up in the rampant fraud in the public system.

Except for the medicare fraud that is being investigated.

It's only money..

Print some more.

BETTER FUEL EFFICIENT AUTOMOBILES? WHY ARE WE PAYING $2.65 PER GALLON FOR GAS & $2.63 PER GALLON FOR DIESEL WE SHOULD BE PAYING WELL BELOW $2.00 PER GALLON WITH SUPPLY UP & DEMAND DOWN WE ARE MISSING THE BOAT HERE!!

What I don’t understand is that this program was supposedly designed to stimulate the US economy, so why are people getting a credit for buying foreign vehicles?! This makes no sense! Whether you agree with the program or not, can someone please explain the benefits of supporting the purchase of imports as it would compare to mandating the purchases of US made vehicles?

northwoodsguy...many of the "imports" are actually made right here in the good old U.S. of A. Both Toyota and Honda maintain plants in the states. Not sure about Hyundai. Just like in the 1970's, Detroit got the memo late that more fuel efficient cars were needed. The "foreign" car makers seemed to get that memo months ahead of the "Big 3" and responded quicker and captured much of the market place.

Bestowing large amounts of money upon individuals -- clearly middle class people who are obviously positioned to trade in their "clunkers" should they choose -- again, leaving the poor out in the cold.... Were that we had invested billions into a comprehensive public transportation system open to EVERYONE. How much wealthier would citizens be did they not require personal vehicles just to function in society? That said, I firmly believe we (meaning the government) must fulfill our committment to dealers who acted in good faith.

government program...just that alone ...more than likely it will not work. Sounds similar to a program that got this country into a mess a few years ago. Loans to people who could not afford homes. Then foreclosure. Same principle, just on a smaller scale. This kid bought a $23,000 car and doesn't even have a job. I give many of these people a couple years then parking lots will be full of repos...

So now we have thousands of cars that are destroyed. Parts for vehicles that could still have been sold and reused. More junk to add to landfills. No recycling done here.

More miles per gallon...bet people will be driving more or just as much. Maybe they will bring up gas prices because they figure people are getting more mpg so they can afford to pay more.

Two of the reasons they pushed through this program...missed the target on both. Help the economy....most people could not afford these cars in the first place. Second ..environment friendly....people will be driving more and these trade in cars were trashed. And many used cars will be sitting at dealerships.

Holy cow Elizabethann, I couldn't agree more. You completely cut and pasted that from my mind.

277houlton

I for one find this program very helpful. I commute 92 miles each way and the gas is killing me. If I can get rid of my 17 mpg vehicle and get into something that gets 35-40 per gal. I can make my payment in the gas money I save. I have a daughter going to college in the fall and money is really tight right now. So I am hopefully going to take advantage of the program if it gets more funding!!! The gov. finnelly makes an effort to help the little guy and all they get is grief!!!

Why do other taxpayers have to foot the bill for you? Where do think that money came from?

The government is KILLING the little guy by saddling him with bloated debt from wasteful programs and "giveaways".

This program is unfair alot of people who have cars and trucks can,t afford to go out and buy a new one even with the $4500 cash back program. And all of us that pay taxes are going to be paying for this rip off of the taxpayer. If they want to do this they should give everyone who paid taxes in 2009 a credit to be used at anytime in say the next two years to use if and only they get a new car or truck!

Directed & Support by Michaud, Snowe & Collins…

.

SUMMER 2009 Horror Film

Cash for Clunkers

Forced Socialistic Health Care

.

Followed by FALL 2009 and Forever More the Reality Film

Third World America

.

I hope these “politicians” realize that their done in Maine!

.

.

Hippykicker...and I don't even have a business degree...just common sense....

I hope all are seeing the bigger picture here. The cash for clunkers program is small compared to what government healthcare will be. If they can't manage a 1 billion dollar project what will become of 1 TRILLION dollars? If you think we have mismanagement now imagine what it could be like if our government takes over a significant portion of our GNP.

I agre woodburner...government healthcare...larger program more waste...

Mismanaged?!? Who da thunk!

Isnt larger goverment great???... All you Obama huggers read that first line in the artical..."Mainers wanting some help from the government in buying a new car or truck may have to wait."....NOW!!! lets change that slightly,... Mainers wanting some help from the government ______________________ may have to wait. What will you be able to fill that blank with as you back this moronic larger goverment is better idea. And NO I wong get used to it and I am NOT leaving!!! Its still a free country even know you are trying your best to do away with that. You should be free to sink or swim no to stick your hands into my pocket and steel from me. Pathetic!

Oh there are some typos in there...Im sorry I worked a double shift last night and I am a little tired.

This program is another knee jerk Bamster bilking of taxpayers. Why should I be forced to buy a car for someone else? This is another form of welfare paid for by money we don't have that was borrowed abroad. Our govt is completely out of control, this is another example of elitist polis putting the wood to taxpayers yet again.

Senator Snowe must realize the Cash-For-Clunkers program is but one of many major problems facing our country. We need to meet and talk directly with our elected officials about these issues before it's too late. Needless to say, since they're all going to be home soon for the August recess, please call their offices and ask them to organize and/or join some local Town Hall meetings. We have a right to let our voices be heard, and they have an obligation to serve us!

Please call them today at:

U.S. SENATOR OLYMPIA SNOWE:

202-224-5344 DC Office

207-786-2451 Auburn

207-622-8292 Augusta

207-945-0432 Bangor

207-282-4144 Biddeford

207-874-0883 Portland

207-764-5124 Presque Isle

U.S. SENATOR SUSAN COLLINS:

202-224-2523 DC Office

207-493-7873 Caribou

207-945-0417 Bangor

207-622-8414 Augusta

207-784-6969 Lewiston

207-283-1101 Biddeford

207-780-3575 Portland

U.S. CONGRESSWOMAN CHELLIE PINGREE

202-225-6116 DC Office

207-774-5019 Portland

U.S. CONGRESSMAN MIKE MICHAUD

202-225-6306 DC Office

207-942-6935 Bangor

207-782-3704 Lewiston

207-764-1036 Presque Isle

207-873-5713 Waterville

After reading about this I am truly scared about where our health care reform will end up...I hope you've been saving your money instead of wasting it on trivial stuff...

Okay, let me get this straight: I trade in my car that's already paid for, tuned up, running efficiently, and doesn't cost me 2 arms and a leg to register and insure. I drive it as little as is possible in order to keep my grocery budget down (since I would have to take that money to use for a payment). I use the money that the federal government takes out of my paycheck, to get a knockdown of price (that's more than likely higher than it should be) so that I can then turn it back over to the state to pay sales tax and to register it (based on the suggested retail price, not what I actually paid for it) get an interest-bearing 6 year loan in order to be able to afford the payments on it, and finally, plan my food budget around boxed macaroni and cheese as I watch my insurance premium proceed to fly through the roof to insure it because it is worth far more than my current clunker. Meanwhile, if my clunker were to crump tomorrow, I'd be hard pressed to find a suitable relpacement that I can actually afford. Wow.

Sassy..that's why I say it's just a matter of time before these cars end up as repos...What's sad is most of these people don't realize their credit ratings will also be greatly effected. It will be hard to purchase a home or any other transaction that requires a loan. It's really too bad the government encourages this type of behavior. Most of the purchases were of foreign cars.

Everyone who essentially is on the Dole, doesn't read news, and thought the idea of a sleek blackman running for Prez was the wave of the future will now enjoy the fruits of 'our' labor. I never see Obama stickers when I commute to work!

Thats ok, Im sure she will be all in favor of Obamacare when that boondoggle comes up for a vote. But lets worry about this measely one billion that she now has concerns about.

Ahh, yep Sassy...I think you just about covered it...and I'd dare say most people veiw this in the same light.

My truck and bike are both paid for (I use my bike to go back and forth to work to save on gas, not just recreation purposes...although I probably look ridiculous in hospital scrubs while riding) and I have NO desire to take on any other payments.

This is really no different then the "bail out"

When I bought my home (at 23yrs old) I did my homework. Sure, I would love to have had a big beautiful house on the lake, but KNEW it wasnt realistic given our income. I have ZERO sympathy for those that got in over their heads with mortgage lenders (same thing is gonna happen here too) because it is up to the each and every one of us to do our research and be an informed consumer.

As if this country weren't already full of self-entitled fools....this is going bomb out when people realize they "really" cant afford that nice new vehicle they've always wanted...but couldnt pay for. They what do you suppose is going to happen?

Hmmm, maybe I should go into the REPO business, lol.

Yes sir, the repo business will be very lucrative in a very short time. The dealers call it upside down and boy will it ever be! Another good business to start will be swastika signs, pennant and bumper stickers. Queen Pelosi is already concerned for the number she has observed in town meetings of late.

Snowe "Mismanaged" Duh, Thank you Ms. Stater of the Obvious!

most of the people buying theses cars are paying cash or financing less then $10k, so your not going to see repo's, and these clunkers are not nice vehicles "junk is junk" for the most part these vehicles should not even have an inspection sticker so if you want to put your family or someone else's in harms way then you shouldnt have a license, the state and local agencies make out because of tax revenue, and the salvage yards make out, these cars will be compacted and sent over seas for steel there will be no landfills. The only downfall is the lack of preparation and i believe they should have made it so lower income individuals had the oppurtunity to purchase used vehicles that fit their budget, for instance $1,000 up to $1,500 dollars based on the vehicle you were junking and the one you're buying.

Its hard to be upside down when you own your vehicle or financed 10k on a sticker of 20k??? The Repo's will be minimal!!! If you want to stimulate the economy give everyone $3,000 dollars, I'm in the car business and seeing these people come out of nowhere to get more than what their car is worth, imagine if you could give a little here and a little there instead of narrowing it just to the car business

And still, I'll be making a payment that I didn't have before in addition to having to register it and insure it. To me, it's a flimflam "feel good" sham because basically, it doesn't benefit most people, yet ALL taxpayers pay for it (twice if you count state tax registry, and if you want to really get down to the nitty-gritty, I suppose you could say that I would benefit in some small measure because the money I paid will somehow come back to me - however the minute amount in the form of state funding). PaleShadows, I agree with you and do think that most people view it in this light - at least the ones that don't fight to keep up with the Joneses by living in houses with mortgages that are well beyond their means. Alas, human nature is human nature, but really...has the old adage "If it sounds to good to be true, it probably is" completely gone by the wayside? I guess it's truly an "ADHD society" when we can't take a moment to read the fine print and truly analyze it.

Quote: "these cars will be compacted and sent over seas for steel there will be no landfills..." so I guess you can add to the number of "benefittees" like

China, et. al who now make most of our goods. Cripe!

I have to agree with Senator Snowe on this one - we need an end date otherwise this could go on forever.

Ya know, we can all have whatever opinion based on Democrats or Republicans, Liberals or Conservatives that we like, but the bottom line is that GREED (on every corner of the earth and in every personal home, congressional chamber and corporate office) in every way, shape and form is what brought us down to this economic hell hole now. Now, we're running around like a bunch of chickens with our heads cut off and blaming all sorts of parties, ideologies, and at some point dare I say turnips for crying out loud, all the while tossing people's money around like it's going to save the world, when in fact, it's just slowed its spin down a blip.

Yesterday was the first day in a while that I heard a commercial for financing that sounded eerily like the ones that started this whole ball of wax (no credit? No problem!)...how soon we forget. This car program is no different in that there will be many people who will finance so they can take advantage of a smoke-screen "bargain." It's like clipping coupons for $1.00 off a purchase of 12 of something that 11 of which will probably stay stashed in a closet until you throw them out. But it's a dollar off!!

Pardon my rant please, but I just got finished watching, ranting, and predicting this fallout of the bottom now for over the course of the last 10 - 15 years, so I get a little testy when I see it happen all over again. I

THE TAXPAYER LOST AGAIN, ONE MORE BILLION DOLLARS FOR WHAT????

THE GOVERNMENT IS GIVING OUT MONEY LIKE IT GROWS ON TREES,,, WHAT A JOKE AGAIN

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