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Why did someone who drove a clunker up until this week now want a car payment? They wouldn't have been driving a clunker if they could afford new car payments, right?
Is there anything in the law to prevent those used car dealers, who buy clunkers (like flood cars) at car auctions all of the time, from making a windfall on this law? The law does have a timeframe, right? Does it also limit the number of clunkers that can be traded in? I'm wondering if the auction dealers trade in their flood car clunkers, purchase a new inexpensive car, get a rebate, sit on the new car until the clunker rebate law expires and then sell the new cars they bought for less than what the new cars sell for at the new car dealerships but sell them for more than what they paid for the cars, can't they make some money?
They weren't really "clunkers" in the sense you think. They were mostly high mileage cars that people traded in at this point in time.
Some just swapped loan payments and drove off the lot.
Remember people still had to qualify for a loan. It seems to me it was more of a yuppie deal to get a better mileage new car.
They weren't really "clunkers" in the sense you think. They were mostly high mileage cars that people traded in at this point in time.
Some just swapped loan payments and drove off the lot.
Remember people still had to qualify for a loan. It seems to me it was more of a yuppie deal to get a better mileage new car.
This IS a yuppie deal and it is disgusting. As a forward, I was an Obama supporter, I like the general idea of universal healthcare...yada, yada...
We are subsidizing the people that CAN trade up and buy new vehicles. This is doing nothing to help people who cannot afford a car payment and may very well rely on local junkyards, (read: small, local businesses) to keep their old car going with "junk" yet usable parts.
Example:
The Doe Family has 1 gas guzzling SUV circa2000 model or so and one semi-fuel efficient sedan. They trade in the *still perfectly usable* SUV for a brand new family sedan. The old PERFECTLY USABLE SUV is destroyed. Then they go and sell or trade their old sedan so they can purchase....A BRAND NEW GAS GUZZLER!
I personally drive a very fuel efficient and reliable car that is older than most of today's college freshmen, but guess what? Since my average MPG doesn't meet the requirements I don't get jack crap for a handout.
Watch these videos and cry (if you love automobiles):
I would LOVE to buy that BMW and possibly that Volvo. They obviously ran as they were driven to the dealership and the engine had to be destroyed.
All I can see this doing is driving up used automobile prices and driving junkyard/salvage yards out of business. The increased price in used vehicles I will likely eventually pay since I didn't qualify for this swell government idea and I can't justify spending so much money on a new automobile.
How about this, folks. Lets start randomly destroying property...doesn't matter. A few broken windows here, couple burned buildings there. Because the insurance companies will get a bailout, the local businesses will get some work repairing said destroyed property, and the property owners would get a little bit of insurance money. Boost the economy, right??
Lets start bailing out each other, one rock and match at a time!
I took advantage of this program. What I saw being traded in were mainly early 90s and late 80s era SUVs and mini vans and full size vehicles. (ours) Mostly very rusty, very oil burning, needing much $$$$ repair. Yuppies would not be caught dead in the cars I saw being traded in. They trade in new ones every 4 years. Thus most of their 4 year old cars would not qualify.
I do not think they should extend it. When it is over, it's over.
As a Volvo lover it pretty much kills me to see that S80 destroyed. You'd think they could've sold it for more than the $4500 they got trading it in to someone that would appreciate having it.
It's unbelievable that the American Government is paying to destroy cars that still have residual value.
Many oif there residual value is in the steel. Remmebr that its also a very sensible stimulus too . It benefts the buyer;the dealer and his employees;the manufacturers of cars that are down. I the end its no different than any tax benefit that goes to companies;investors or farmers in this country.It also takes some of the dangerous car off the road;plus it reduces demand for gasolinhe with more ;more efficent vehicles. I will not benefit but its alot better than many government subsidzes go to people and priavte concerns.
Many oif there residual value is in the steel. Remmebr that its also a very sensible stimulus too . It benefts the buyer;the dealer and his employees;the manufacturers of cars that are down. I the end its no different than any tax benefit that goes to companies;investors or farmers in this country.It also takes some of the dangerous car off the road;plus it reduces demand for gasolinhe with more ;more efficent vehicles. I will not benefit but its alot better than many government subsidzes go to people and priavte concerns.
But what does it do to resources? A car that ran for a year, was driven for a year and was maintained enough has real value to someone. Where I lived I had a bus available but not here. I know I could never afford a new car or even a really good used one, but I'd be happy to take over one of those clunkers. Before a car is salvaged the workable parts are usually sold off. The engine can be fixed. Why throw away ALL those resources, deny the people who can't go buy a new one a car that will get them where they need to go, and use more resources to build another car when it ran and worked?
This isn't about gas milage or saving anything but detroit. The yuppy types who can trade in got a freebie. And a lot of what was useful was wasted. We extend the throw away society again and pander to it.
If these cars are sold as parts I could accept it, but crushing them and probably sending them to china is disgusting. End it now...
And apparently more people bought new imports too so Gm and Ford did not get all the dollars. Which is NOT a good reason for a couple of hundred more billions being handed out just in case.
I like the fact that I can actually see the cash for clunkers program making a small difference in providing employment unlike some of the other stimulus packages. I took advantage of the program this weekend and the car dealership was packed and had to hire additional employees to assist with the increase in sales. While the clunkers program wasn't meant for everyone it did give some individuals like myself an incentive to buy a new car. I loved my 99 jeep but was looking at having to replace the transmission and the rear end within the year and decided not to pass up the 4500 clunkers money plus the additional 4500 chrysler rebate. The jeep had some front end damage and I wouldn't have gotten 4500 on a trade in. While the clunkers program could have been better planned before being implemented I don't think the program was a bad one although I'm not sure that salvaging all the old vehicles is the best option.
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