Here's one way to help save the American car market.

[Pab Sungenis]

There are 218 million people of driving age in the United States right now.

Let's be generous and say that one tenth of them would be interested in buying a new car within the next year. That's about 22 million people.

Instead of ridiculous bridge loans, why not offer a government grant of $10,000.00 to anyone who buys an American-made car between June 1st, 2009, and June 1st, 2010?

For a possible outlay of $220 billion, we could help spur car sales at a time when people can least afford cars and the car makers desperately need them to buy. We could also offer a further incentive like raising the grant to $15,000 if you take an older, less fuel efficient or more polluting car off the road.

The program would run by the Department of Transportation, which would have the power to pay the grants directly to car dealers. Buyers would apply for the grant using their taxpayer I.D. number, to ensure each person can only take advantage of the program once. They would apply through the dealer, the same way they apply for financing now.

Thoughts?

[marketcrazy1]

1. and if a person has shit credit or no job?

taxpayers should subsidies YOUR new car?? what if i JUST bought a car? what if i want a honda? since you cant buy a new car for ten grand they would have to go into debt for the car! MORE debt??? why not just let them go bankrupt and give the three million displaced workers 50,000 a year for the next two years until car companies can figure it out? it would ONLY cost 150 billion!! keep trying!! LOL!!

[ColbertWatcher]

3. "taxpayers should subsidies YOUR new car" That beats subsidizing the CEO's sloth. n/t

[ContinentalOp]

2. I like the spirit of your idea but I don't think it would work.

The demand would be out of control. I would probably buy something just to resell it. Of course prices would be all out of wack for that reason. And I don't know if the Big 3 could keep up with the demand. If GM is so short on cash that's it's going to have trouble keeping the lights on, then a plan like this doesn't really help.