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So, how were all these poor people going to get these cars that obviously no one was selling just 3 months ago?
Is your argument that the cars once traded in should have been given to poor people? I would just love to read the ****storm if that were part of the program.
"Its complicated". I know they cant give those CFC trade-ins to poor people - because its their objective to get old cars off of the road, but it seems a shame that perfectly running 1984-20?? cars, trucks and SUVs that were traded in on "shiny, new, beautiful, earth friendly 2009" cars are going to waste. Such a waste of money IMO.
Kinda OT on this thread, but whats even more foolish is where they are not allowing other parts to be salvaged such as interiors, glass, doors, hoods, etc.
Say someone had a 1999 Lincoln Continental... it needs a hood and a door. A CFC 1999 Continental (same kind of car) with a good hood and door was traded in. Whats the harm of salvaging a door/hood for the damaged non-traded in car? Its just this program dont make TOTAL sense to me. I like the concept, but I detest some of the methods.
Whats the harm of salvaging a door/hood for the damaged non-traded in car? Its just this program dont make TOTAL sense to me. I like the concept, but I detest some of the methods.
From what is stated on this link under scrap value: CARS.gov
Parts can be saved other than the engine/drive train.
How long before this turns out to be like the mortgages? People running out to buy a new car because they are getting $3,000 to $4,500 off of the cost of a new car? I wonder if they will keep statistics of the amount of people that get into the clunker deal only to have their car repossessed within the next couple of years.
I can see people whom were already in the market for a brand new vehicle making out from the clunker deal. One thing I do not understand is why someone whom is driving a late 90's or early 00's vehicle whom was not in the market to buy a new car to suddenly run out and do this deal. They will still have to pay a car payment each month and the car insurance cost will be more since they will need full coverage. How many people doing this are adding more debt to debt they already have? I just hope that the people taking part in this deal are thinking it through before doing it.
I want to comment on a couple of things you said, but in reverse order.
Quote:
Originally Posted by Egobop
I just hope that the people taking part in this deal are thinking it through before doing it.
I agree. It's big ticket item, much like a house. But really, how often do people NOT think things through? I'd say, way too often. However, that's not a reason to deny those people who DO take the time to [1] read and thoroughly understand the CARS program, [2] research the best deal out there on the car that best suits their needs, and yes [3] carefully calculate the financial impact of purchasing a new car, even with the money from the federal government and any manufacturer and/or dealer incentives.
Quote:
Originally Posted by Egobop
How long before this turns out to be like the mortgages? People running out to buy a new car because they are getting $3,000 to $4,500 off of the cost of a new car? I wonder if they will keep statistics of the amount of people that get into the clunker deal only to have their car repossessed within the next couple of years.
This very legitimate concern has been mentioned in a number of the "Cash for Clunkers" threads. Will there be people who end up in financial trouble because of this? You bet. The program has been wildly popular, and I have no doubt that some people rushed into it to "get a good deal", not realizing that a "good deal" still means a financial obligation on their part. Repossession may indeed be in their future.
But perhaps (and sorry, I'm gonna be a bit of a wise*** here) those same people and their repossessed cars could provide the solution to another concern often mentioned by people ... the future lack of used cars.
Bottom line - people are free to participate and turn in their eligible cars, or not.
If you can't afford a new car, then don't buy one. It's pretty simple.
I don't want to start a fight but I want to ask you this:
What do you think will happen to auto sales when the CFC money runs out or the program time terminates?
I personally think the current sales are just an artificial blip and sales will continue to tank later.
Right now, CFC aside, dealers are missing that core client, that guy (or girl) that trades every 3 or 4 years like clockwork, has good credit, makes good money, etc.
Those people are scared and not buying. CFC is making up some of that slack, but it is an artificial inflation.
Hopefully, the economy will turn enough that that core customer starts coming back. That's what will drive sales back up.
I want to comment on a couple of things you said, but in reverse order.
I agree. It's big ticket item, much like a house. But really, how often do people NOT think things through? I'd say, way too often. However, that's not a reason to deny those people who DO take the time to [1] read and thoroughly understand the CARS program, [2] research the best deal out there on the car that best suits their needs, and yes [3] carefully calculate the financial impact of purchasing a new car, even with the money from the federal government and any manufacturer and/or dealer incentives.
This very legitimate concern has been mentioned in a number of the "Cash for Clunkers" threads. Will there be people who end up in financial trouble because of this? You bet. The program has been wildly popular, and I have no doubt that some people rushed into it to "get a good deal", not realizing that a "good deal" still means a financial obligation on their part. Repossession may indeed be in their future.
But perhaps (and sorry, I'm gonna be a bit of a wise*** here) those same people and their repossessed cars could provide the solution to another concern often mentioned by people ... the future lack of used cars.
Bottom line - people are free to participate and turn in their eligible cars, or not.
Unfortunately, there are quite a number of people whom do not thoroughly think through their larger purchases which is one reason I feel there are a lot of people having severe financial problems. I am not trying to say that people should or should not take advantage of the "clunker" deal; I am simply saying that I hope people have finally learned their lesson about taking on too much debt after things such as the adjustable rate mortgage mess.
I actually have a 1993 conversion van which I think would be eligible for the "clunker" deal but I also know that I will not take advantage of it since I do not need another monthly bill for a car payment. At the same time I do know people that are looking to take the deal even though they really are not in the financial situation to do so. If they do, that is their business but I just hope that the financial institutions giving out these loans do not end up with a large number of repossessed cars and unpaid loans that make them ask for more "bail out" money since that would effect everyone not just the people taking on more than they should monetarily.
Keep in mind, this isn't like it was a couple years ago.
Finance companies are much tighter these days. If you really shouldn't be buying a new car, they probably aren't going to lend the money.
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