Why "cash for clunkers" is wrong, wrong, wrong!

You are right. The cash for clunkers is pretty stupid but in my opinion I don't think we're going to see that for a few months yet. I work at a car dealership (foreign). First of all, this is a catch 22. If the government really wants to save GM (gov't motors) and the other two domestic lines, this would not qualify for foreign vehicles, although most are manufactured in the US and those plants so far have been immune to shut downs, which is keeping a large number of people employed.

Secondly, yes, you do need good credit to get the loans for the new cars, however, in this shaky enconomy I would not finance anything right now. I asked one of the sales managers how many repos they were expecting in 6-8 months and they hadn't thought of that. So, then you have repos, chargebacks on extended warranties and insurance.

Third, the only people making money are going to be the salvage yards. We have to disable the vehicles by locking up the engines with sodium silicate, which leaves plenty of good sellable used parts. In the meantime, those vehicles are sitting on the lot taking up space waiting to get taken to the junkyard.

And, so far the gov't owes the dealerships and no one is really sure when they are going to be paying out the money for the clunkers. The money lasted 4 days, which I don't get. They stated 198 million so far of 1 Billion was used or promised. So where is the rest of that money. Nevermind, dumb question of the government keeping track of money.

Another hastily thought out program

A blathering idiot? Hardly. Call your Congressman and ask them what their opinion is of Congressman Frank. Not everyuone agrees with him but he is one of the most respected members of Congress.

Read if you dare:

www.house.gov...

reply to post by mhc_70


I can't watch your video, my 6 year old son is in the room

But in answer to your question, it helps people who were already planning on buying another car. For anyone else who may not have the financial foundation to do so, it's going to be a nightmare.

reply to post by opal13


Thanks for responding. I'm glad someone from the industry itself is able to provide some input.

Originally posted by jtma508
A blathering idiot? Hardly. Call your Congressman and ask them what their opinion is of Congressman Frank. Not everyuone agrees with him but he is one of the most respected members of Congress.

I guess thats the difference between me and you. I study the facts and make up my own mind, instead of relying on a bureacrat to tell me who I should and should not trust.

Originally posted by jtma508
A blathering idiot? Hardly. Call your Congressman and ask them what their opinion is of Congressman Frank. Not everyuone agrees with him but he is one of the most respected members of Congress.

Read if you dare:

www.house.gov...

If memory serves, the politicians in DC answer to us. Not each other. We are (should) be the ones that determine whether or not they are fit to serve. I personally think that it is a sad state of affairs when he constantly gets re-elected.

We get what we deserve.

Hasn't this most likely been done to jump start the consumer confidence of the richer class and supposedly just trickle down by employment figures instead


When it comes to gas mileage by just a few miles more and with the added financial burden, I don't see this as a direct win for the consumer.

My choice would have been a hybrid with fuel mileage like a Prius, which I think are already part of some discount or rebate program? I have an almost full sized 2001 GM Buick that averages 26 mpg. I couldn't see buying a smaller road-kill-raccoon-car that only gets a few more mpg.


My biggest problem with all of this is the fact that many of these vehicles are not going to be traded down or given to replace those even worse vehicles other people can't afford to maintain or replace.

When it comes to clunkers on the roads, these are owned and driven (when running) by the people who can never afford a new or possibly even much better and reliable car........off of a lot.

Those sweet private owner deals are slim to none and probably gone before the paper hits the streets. Maybe I'm wrong, but it sure seems that way to me without actual statistics.

Think of the possible numbers of used vehicles these dealerships have had that could have been given or sold at huge discount to those in more need.

More likely, these highest numbers of vehicles have already been crushed and are being recycled.

My big beef is for the less capable consumers that are getting screwed out of any bargains. I have seen prices come way down on used cars and the one I bought just a couple years ago is available at less than half the cost at 'some' dealerships.

Obviously, we won't be hearing much if anything about that type of program. ( maybe much later)

All vehicles that are sold used should be inspected and rated as certified one way or another. No one should ever have to to pay for a car that doesn't last six months on the road without expensive or any repairs.

They may as well be renting them on a lease program instead. What's the point of thinking you own a car, when the banks or mechanics do instead?

I want to see Obama do something for the little guys that ACTUALLY voted for change that are more than tired of being put on the back burner.

[edit on 1-8-2009 by aleon1018]

Here's my take on this little "program"...

First thing that came to me when I heard it was "what the hell is this going to do to used car prices?". Follow me here for a sec...

I personally drive a 20 year old Ford van. This thing is definatly on the list for cars to be turned in as a "gas guzzler". Now, through sheer luck, and Craigslist, I bought it from a flower shop that was looking to update their fleet. Cool, great for me. I got it for $400.00. Yep... $400 bucks. 117k miles on it, Kelly Blue Book was around $1200 for it at the time. About the only things wrong were a small oil leak at the rear seal, and the air needed a recharge. Now, if I was some guy just wanting another car to add to the garage, I would be looking for stuff like this. Think about it. I pay $400.00 for this van, then trade it in for my "gas guzzler", netting $4100.00. Flip side is, if/when I ever sell this van, and that program is still going, I'm asking a minimum of say $3000 for the van. Why? Why not? Someone out there will probably be trading it in for the program. I know, I'm being greedy, but to me, I'm just keeping the richer guy's profit margin down...

reply to post by Stone2065


thats not to mention the parts for used cars are also going to rise...

I've been reading report dealerships are already having problems getting the reimburshment checks.

I wonder if dealerships dont start getting their checks, if they will go out and repo the cars..... that would enrage masses!