Federal Politics

Published — August 7, 2009 Updated — May 19, 2014 at 12:19 pm ET

Cash stimulates auto sales, real estate not so much

Introduction

Americans, it seems, may prefer new wheels to new homes. Compared to the wildly popular auto trade-in program “cash for clunkers,” the $8,000 first-time homebuyer credit is sipping from the taxpayer trough like a Prius at the gas pump.

Numbers for both programs are a bit fuzzy, but the clunkers program, which won a $2 billion increase in funding in a Senate vote Thursday evening, seems to have burned through in ten days close to the amount of cash the first-time homebuyer credit cost in a month.

The Department of Transportation said this week it has received voucher requests worth $775 million since the program began on July 27. The program gives car buyers up to $4,500 toward a more efficient new car in exchange for sending their old gas guzzler to the crusher. Automotive industry experts say dealers may still be holding vouchers from the clunker program that — once submitted — will push the cost beyond its original $1 billion budget.

If real estate industry numbers are correct, the $8,000 first-time homebuyer credit cost $7 billion at most during the first six months of 2009. The Congressional Joint Committee on Taxation originally projected the plan would cost taxpayers $14 billion in 2009, so the payouts seem to be on track. According to the National Association of Realtors, 876,000 first-time buyers purchased homes during the first six months of 2009.

Asked why Americans seem more bullish on cars than cribs, Realtors spokeswoman Mary Trupo demurred. “I can’t comment on that,” she said.

Gary Dilts, senior vice president of global automotive at J.D. Power and Associates called it a matter of leverage. “Do the math on $8,000 compared to the price of house,” he said. “On a $20,000 car, you get a leg up on it.”

Dilts also said the auto industry has done a good job marketing the clunkers program. “A lot of people are looking for a reason to buy a car anyway. This is giving them one.”

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SOUTH JERSEYTed SiroisMark SullivanTom LarkinAnonymous Recent comment authors
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Mark Sullivan
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Mark Sullivan

Trump needs to conduct these activities because the entire MSM media, excluding Fox, is campaigning against him 24/7/365.

Didn’t Monica’s boyfriend’s wife and various criminal enterprises outspend Trump by almost 2-1?

CapitalistRoader
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CapitalistRoader

Why wouldn’t he get an early start on fund raising? Hillary outspent him two-to-one in 2016. The Dem’s are the party of big money. The President knows this and is attempting to get a jump on it. Of course the Dem candidate will outspend him in 2020 so it’s only rational that he starts fund raising now.

George Young
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George Young

Oh brother. We just 8 years of the Campaigner – in – Chief. Where was this journalistic rectal thermometer then. Just another article about 2000 words too long that merely takes another slap at Trump for something he far from initiated.

j stevenson
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j stevenson

The big difference between Trump and all the rest is his refusing to accept funds from lobbyists, so they don’t have the White House access they are used to. These are the donors who buy the presidency and are as pixxed off that he won the election as are the media and the Dems. Lobbyists have never been shut out of the WH and Trump has told them he is not for sale.

jan v
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jan v

all the lobbyists are running all our government agencies and all the career civil servants who know how to run the country have been fired. YOU think this is a good thing ? what a crock…

thomas alessi
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thomas alessi

I am for Trump

Martin Shellabarger
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J. Stevenson, what are you drinking? Trump has more lobbyists in his administration than probably any other president. Trump is totally “for sale”, and the corporations know it. Grow a brain!

Anonymous
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Anonymous

Trump needs to be impeached and tossed in prison. Then have the key thrown away so he will never be free. Then he can see how it feels not to have freedom.

Mark Sullivan
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Mark Sullivan

Thank you for the usual insightful leftist low IQ Snowflake response.

barney
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hes not imprisoning them hes sending them back to their country chill tf out

SOUTH JERSEY
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SOUTH JERSEY

WHY DONT YOU HAVE FREEDOM?

Tom Larkin
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Tom Larkin

First, something positive. I was happy to learn of empirical information in article. BUT, the article was so slanted against President Trump as to be deemed fake news (“Perhaps Trump just lied.” (Two different issues)). The article mentions that President Trump raised over $67 million, but ended 2018 with $19 million. President Trump spent over $40 million 2016 and 2017. President Trump conducted 57 political rallies. The article notes the hats and T-shirts sold, but NEVER MENTIONS THE INCREASE IN THE NUMBER OF REPUBLICAN SENATORS during a mid-term election that lost the House and the number of political rallies in… Read more »

Ted Sirois
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Ted Sirois

At least Trump is getting donations from willing donors. Fresh from his first election, Obama used billions of our children’s tax dollars to save thousands of union jobs in the car industry and bailed out the banks and many Wall Street businesses. This secured his source of reelection funds for his reelection four years later.

South Jersey
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South Jersey

TRUMP 2020; IS AN AMAZINGLY SMART MAN! VERY ORIGINAL & CREATIVE. I AM HAPPY TO HAVE HIS AS POTUS.

SOUTH JERSEY
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SOUTH JERSEY

THIS ARTICLE WAS OBVIOUSLY WRITTEN BY, A TRUMP-HATE-GROUP. THAT FEELS; IT IS NOT NORMAL TO BE SUCCESSFUL WITH YOUR OWN BRAND NAME. WHEN, IF FACT, IT IS NORMAL! >>>>> THIS IS >>> FAKE NEWS!!! <<<< ie: A PACK-OF-LIES; SPUN INTO; DEFAMATION OF CHARACTER. FOR A SINISTER-AGENDA OF; FASCIST DEMOCRATIC SOCIALIST, COUP D'ETAT

David
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David

Are you on some kind of drugs? Writing in caps makes me think that you are grumpy old fart or a uneducated hillbilly.