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Author: Subject: Cash for Clunkers Program
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[*] Post 380521 posted on 20-6-2009 at 21:57 Reply With Quote
Cash for Clunkers Program



The US Congress is moving forward a bill to promote sales of new automobiles by subsidizing them up to $4,500, provided you trade in a "gas guzzler" that you have been driving (actually, that you have carried insurance on for the past year).

The older car must be destroyed (so, the money the government pays is effectively all you get--the dealer can't sell the used car to someone who needs one, even at a reduced price).

How well is this going to work?

Since the car turned in is destroyed, it must be worth less than the seller could get for it on the market. Such a car must be in poor shape--high miles, or rusty, or old. Even with these against it, the trade-in car is not eligible unless its mileage rating is inferior to the new car. A little car in poor shape won't qualify.

So, only people driving poor cars indeed can qualify.

But, they cannot buy an affordable USED car--it must be a NEW one. The government credit might bring the cost of the new car down from @24,500 to $20,000. But, if the person could afford the down payment and monthly payments to buy a $20,000 car, why is he driving a gas-guzzler of little worth?

The goverment wants to sell new cars to stimulate the economy. It has loaned billions to two car companies. Now, how will it get the money back? These geniuses are spending government money to buy cars! (Like the child running the lemonade stand, who uses his money to buy the ingredients, and then uses his own money to buy the finished lemonade, so that he'll take in enough money to pay for the ingredients!lips_sealed)

Who gets kicked in the butt by this program? People like myself, who can only barely afford to buy the very cheapest cars ($1000 or less has been the cost of the last few cars I've purchased). These cars are the ones that will get crushed, causing a SHORTAGE for the poor.

http://www.latimes.com/news/nationworld/nation/la-na-clunkers13-2009jun13,0,942989.story

http://www.usatoday.com/money/autos/2009-05-11-chrysler-gm-cash-clunkers_N.htm

http://www.politico.com/news/stories/0609/23550.html

http://jalopnik.com/5285833/a-guide-to-the-cash-for-clunkers-bill
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[*] Post 380522 posted on 20-6-2009 at 22:13 Reply With Quote


Better fix that window or trade it in . roffle
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[*] Post 380532 posted on 20-6-2009 at 22:58 Reply With Quote


roffle

roffle roffle
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