Why 'Cash for Clunkers' Will Keep on Rolling

Reader Comments
Back to blog

This helped the poor people, but what did it do for the working class? With the inventory of lower priced cars depleted, a shortage has been created. When a shortage is created prices go up! Car manufacturers can create less cars and make more money. Who's money? Only those that depend on a vehicle to work. Not those that have a government vehicle provided for them!

used and abused by gov of CA 12:22AM October 18, 2009

From Richard of FL:
"Let's give people more of an incentive to buy American again !!"
Many foreign cars are made here in the US. Japanese auto companies in particular do this as a sort of "political move", to make themselves look better to American consumers. If you were to break down the origin of parts and labor of cars that come from either American or foreign companies, you may end up with foreign cars actually being more "American".
In a way it's shameful that any of us can't easily tell where these goods are coming from, but that's the globalized world we live in.

Christopher of VA 12:38AM September 17, 2009

If it is true that a US Public Program (C4C) to help our economy is actually resulting in more foreign car sales then American Car Sales then maybe the program needs to be looked at again.
Maybe it should add a stipulation requiring a buyer to buy an American Car or Truck. This way it would further increase the positive effects on the American Economy and Foreign Car Fealers would fimally be in a position to deal with an American Car Company . At least it would level the playing filed a bit more in favor of American Cars !! Finally !!
So far All of the programs the government has come up with to date all seem to be needing a second and even a third look and some much needed changes for sure.
From what I can see of C4C so far is it is benefitting Foreign Car Companies more then American Car Companies and not creating all that much in the way of new jobs at all. It may be saving some jobs that would have been lost but it surely is NOT creating new ones !!
Let's give people more of an incentive to buy American again !!

Richard of FL 7:26PM August 17, 2009

I don't care what they do with the clunker cars. Melt them down use them for spare parts. If I was making any consistent money I would trade in my 95 195K mile Ford Explorer for a Fusion Hybrid, Fit, Insight or Camry Hybrid. If they could sell my old Ford for more than it's worth as parts more power to them, but they won't and no one would buy it anyway give the much better used car options.
I also don't care if the program works or not based on some edutopian analysis since this is what got us here in the first place and since I and my grand kids are going to be paying for this for a very long time we should be first in line to benefit from the government spending.
So why don't you economic whiner babies just shut up and go ask your bonus grubby banker for a loan.

Tristam Harrington of MI 12:58PM August 12, 2009

Ya gotta love this administration. Everything they have messed with has backfired one way or another and so will this.
The very nature of the car business is questionable for the most part but C4C is taking the form of another Sub Prime loan scam from my perspective. There just has to be some really creative accounting going on to get some of these people in cars they cannot afford. From a car that more than likely would have been paid for or nearly so to a unit that represents three to four years fixed debt in this economy by itself is irresponsible.
Today is not the day I would go out and incur $25,000.00 plus debt (plus interest and a hefty increase in insurance premiums) knowing no more about how we will fare before this recession ends. There are those that indeed will pay cash for a new car but by and large, most will be financed. I wonder how many buyers even know to consider the cost of mandatory maintenance, especially first year, and fold that into the cost of buying?
Job losses, while receeding, and the currently imperiled economy should deter all but the truely financial stable from loading two or more chambers into the financial gun already aimed against their heads. No one is making people go out and do something they may or may not do but it sure doesn't help either. Glitz is glitz. Glitz sells.
My bet is the industry (auto) standard for normal repossessions plus a significant added number thanks to C4C will come to past in less than six months. Win, win for the dealer. He gets a shiney new used car for his lot (all paid for) and the other guy gets a bycicle.
Broken watches for new jewelry (subsidized, of course) makes about as much sense to me as this program does.

Tom K. of CA 10:55AM August 12, 2009

"You cant not tell me that the dealers are junking the best of these cars, they just set the nice cars aside and wait for another clunker to come in on trade for another used car, then use that one for the clunker trade, just seen a 2003 chevrolet z 3/4 ton pick up go and i will bet you a dime to a dollar it wont be wasted" I am a used car dealer, i have seen in the past few weeks alot of cars and trucks being run through the wholesale auction, "clunkers" that were New car trades from large dealers, mostly high milage trucks in many cases they bring more than the 4500 dollar figure, used car/truck wholesale prices have skyrocketed in the last month, So they sell the clunker for say 5500, the customer gets his 45, and the dealer ends up with a extra grand in his pocket, the paperwork never gets filled out, and the motor never gets it fatal cocktail used to blow it up. The 12 mile a gallon unit is back on the road again, Also How do the dealers prove they really blew the engines up in these cars or trucks, they are sold to the local wrecking yards, they are worth more for parts if they ran, as long as it never gets retitled who is going to know? Lots of loopholes in this system.

Chevyman of NY 10:05PM August 11, 2009

You cant not tell me that the dealers are junking the best of these cars, they just set the nice cars aside and wait for another clunker to come in on trade for another used car, then use that one for the clunker trade, just seen a 2003 chevrolet z 3/4 ton pick up go and i will bet you a dime to a dollar it wont be wasted

john green of OH 3:05AM August 11, 2009

So instead of paying for maintenance costs and upkeep on solid vehicles that have years left, cars are being traded in and destroyed, completely wasted, millions of dollars going in the trash. All the while Obams is coaxing and luring people into his own self-destructive - dysfunctional overspending psychological addiction. And all the while telling people "We have to stop spending beyond our limits! We must stop" as he spends billions like it is water and encourages Americans to do the same by policy and his own examples.
He enables people to trade in their old cars and buy a new one so they add a new payment onto their monthly bills they already cannot pay. That makes alot of sense
It is idiotic, period.

Obamaiskilling America of TX 11:18PM August 05, 2009

Put the two billion in the Social Security fund that is dropping because Obama's stimulus is not working and over two million people have lost jobs and are not contributing to SS under this Marxist President.

Fed Up of WI 6:35PM August 05, 2009