It only helps those who can afford a new car. It doesn't help those who don't make enough for a new car payment. In the grand sceme of things $3,500 or $4,500 off a new car is about $30-$50 a month towards the monthly payment. Not very many people will say "since it will make a payment $350 instead of $400, Wow! Now I can afford a new car!". It still doesn't affect those who can't make a car payment at all. I'm not saying this doesn't help anybody. But, after you figure in what cars make the lists, who can and can't afford it. It's nothing more than another form of car company bail out. In fact, it's almost like giving a mortgage you can't afford. How many people are buying a car they can't afford. If $30 or $40 a month makes the difference in buying a new car or not, it's probably not. Just my opinion.
This program is a ridculous waste of taxpayer money. It is yet another bailout strategy to support the failing auto industry. And even the idea that a buyer should get the money if the new vehicle saves 2 miles per gallon is amusing. Come on folks. I agree with Mr. Paine that here is another opportunity for the average person to take on a car payment that they may not be able to afford. And saving 2 miles per gallon is not going to subsidize the mortgage payment. What will be the next reckless scheme to bilk the taxpayer? Uncle Sam get back to the constitution and back to basics.
The CARS program in essence favors the new car dealer(and hence the manufacturer) over the small businessman(used car dealer). As soon as the program rolled out, all late model small and midsize cars in the used car market were devalued. Who would consider a used late model Chevy Cobalt, Ford Ecsort, Dodge Avenger, etc. when they can buy a new one for the same money and in some cases less. These car represent the bulk of rental vehicles and in turn a large portion of the used car market. There are many used car dealers stuck with inventory that is now worth less than what they paid for it. I know, cry me a river because a used car dealer is suffering, but they comprise a significant portion of American small business. The second point is that my tax dollars are subsidizing the purchase of someone elses vehicle and it is not based on need, but simply having a car that qualifies as a clunker. Third, the program requires that the clunker be destroyed and that the dealer follow the salvage cost of the vehicle and ensure that the customer is reimbursed that on top of the voucher. How much unnessecary adminstrative costs are going to run the program, distribute the vouchers, track the salvage of the clunkers and go after violators who will attempt to put the cars back on the market(think Hurricane Katrina and how many of the flood totaled cars made it back into the marketplace). By the time the program is finished helping out less than 10% of the car buying public, it will have been cheaper to just cut every tax paying household in the U.S. a check for $4500.
I can't believe people are getting the financing for these vehicles-I wonder if banks think they are worth the risk,being that they have the $3500 or $4500 coming off the car,in addition to the rebates.I bet the repo man will be getting busy in the next year.My truck qualifies,but no new pickup I know gets 27mpg,so I would only get the $3500.I would have loved to trade it in on a new VW Jetta TDI (diesel)-figure $4500 for the clunker,$1300 federal tax credit on next years taxes for being green,and then you can deduct the sales tax off the state tax return also.Oh well,I guess I'll keep all my lien free vehicles for now. We just bought an 06 Grand Prix in Ohio a couple weeks ago-has 130k on it,but looks new.We just got the Ohio title in mail today-so now we can go pay our nice state the sales tax.Amazing,only took Ohio 2 weeks to issue a title-NY takes 2 months........
It only helps those who can
It only helps those who can afford a new car. It doesn't help those who don't make enough for a new car payment. In the grand sceme of things $3,500 or $4,500 off a new car is about $30-$50 a month towards the monthly payment. Not very many people will say "since it will make a payment $350 instead of $400, Wow! Now I can afford a new car!". It still doesn't affect those who can't make a car payment at all. I'm not saying this doesn't help anybody. But, after you figure in what cars make the lists, who can and can't afford it. It's nothing more than another form of car company bail out. In fact, it's almost like giving a mortgage you can't afford. How many people are buying a car they can't afford. If $30 or $40 a month makes the difference in buying a new car or not, it's probably not. Just my opinion.
This program is a ridculous
This program is a ridculous waste of taxpayer money. It is yet another bailout strategy to support the failing auto industry. And even the idea that a buyer should get the money if the new vehicle saves 2 miles per gallon is amusing. Come on folks. I agree with Mr. Paine that here is another opportunity for the average person to take on a car payment that they may not be able to afford. And saving 2 miles per gallon is not going to subsidize the mortgage payment. What will be the next reckless scheme to bilk the taxpayer? Uncle Sam get back to the constitution and back to basics.
The CARS program in essence
The CARS program in essence favors the new car dealer(and hence the manufacturer) over the small businessman(used car dealer). As soon as the program rolled out, all late model small and midsize cars in the used car market were devalued. Who would consider a used late model Chevy Cobalt, Ford Ecsort, Dodge Avenger, etc. when they can buy a new one for the same money and in some cases less. These car represent the bulk of rental vehicles and in turn a large portion of the used car market. There are many used car dealers stuck with inventory that is now worth less than what they paid for it. I know, cry me a river because a used car dealer is suffering, but they comprise a significant portion of American small business. The second point is that my tax dollars are subsidizing the purchase of someone elses vehicle and it is not based on need, but simply having a car that qualifies as a clunker. Third, the program requires that the clunker be destroyed and that the dealer follow the salvage cost of the vehicle and ensure that the customer is reimbursed that on top of the voucher. How much unnessecary adminstrative costs are going to run the program, distribute the vouchers, track the salvage of the clunkers and go after violators who will attempt to put the cars back on the market(think Hurricane Katrina and how many of the flood totaled cars made it back into the marketplace). By the time the program is finished helping out less than 10% of the car buying public, it will have been cheaper to just cut every tax paying household in the U.S. a check for $4500.
I can't believe people are
I can't believe people are getting the financing for these vehicles-I wonder if banks think they are worth the risk,being that they have the $3500 or $4500 coming off the car,in addition to the rebates.I bet the repo man will be getting busy in the next year.My truck qualifies,but no new pickup I know gets 27mpg,so I would only get the $3500.I would have loved to trade it in on a new VW Jetta TDI (diesel)-figure $4500 for the clunker,$1300 federal tax credit on next years taxes for being green,and then you can deduct the sales tax off the state tax return also.Oh well,I guess I'll keep all my lien free vehicles for now. We just bought an 06 Grand Prix in Ohio a couple weeks ago-has 130k on it,but looks new.We just got the Ohio title in mail today-so now we can go pay our nice state the sales tax.Amazing,only took Ohio 2 weeks to issue a title-NY takes 2 months........