The Auto Writer

The same government that wants to manage your health care can’t manage a car scrappage program.

Although the federal government hasn’t stopped the Car Allowance Rebate System (CARS) program, funds are being depleted much faster than expected. Since launching last Friday, dealer showrooms have been overwhelmed by customers who were looking to turn in their rusty relics for fresh, new rides. Scheduled to end on November 1st or when funds run out, CARS is proving to be so much of a success that the federal government is having a difficult time keeping up with it.

And Congress is considering legislation which will essentially put your health care under government control. No thanks.

On Thursday, car dealers caught wind of a Transportation Department discussion to suspend CARS immediately. On Friday, the White House said that the program was still on but that additional funding might be needed.

Offering rebates of $3500 to $4500 per vehicle, CARS is expected to help 250,000 customers lose their rolling relics. In a bad year (which so happens to be this year) 250,000 passenger vehicles are sold each week. In good years, that number easily tops 300,000. It doesn’t take an advanced degree to realize that customers will flock to dealerships in a bid for easy government money – I expected the well to run dry before the end of August, but with July coming to an end the scrappage program may be just about tapped out.

If you haven’t taken advantage of CARS yet, then don’t worry – Congress is bound to find additional funds to keep the program running, perhaps expanding three- or four-fold before letting CARS die a natural death.

The CARS program should be a lesson for Americans who think that our federal government can manage our personal affairs better than we do. With Medicare and Medicaid desperately needing to be reformed, a national health care plan could hit a roadblock just as fast as CARS, but with trillions of dollars at stake and your personal health on the line.