Cash for Clunkers

[anatess]

I tried to do a search for this but I couldn't find one... maybe because my brain is not working today...

All I'm looking for is a pro and con debate on it.

Please stay away from Republican versus Democrat bashing, liberal versus conservative bashing, Bush versus Obama bashing, or what have you...

Just plain pro and con, for example...

I think spending a dollar on the Cash for Clunkers program is a bad idea, let alone $4 Billion. Then list your reason as it touches a.) economy, b.) environment, c.) taxes, d.) etc.

[Maxel]

I guess I can kick it off with a few simple points, then watch the big dogs get their debate on...

I'm against the cash for clunkers program because

a) the government is paying people to get rid of their gas-guzzling cars? What's the betting that many, many of those cars are old and not worth the $4.5k-$5k the government is paying for each one. In effect, the government is giving money to car dealerships for the sake of the environment.

b) The program doesn't allow the purchasing of a used car with the loan obtained from the government. My mom and I looked at every car dealership's website in our town (Olathe, KS) and the cheapest new car was $14,000 (I think it was a Kia). To take advantage of the program, the buyer must pay an additional $10,000 or so to make up the leftover cost. Not really helpful to one likely demographic of people who would otherwise use the program- the poor and lower middle class with one or two old, gas-guzzling cars.

[hordak]

Bad idea IMO. Lowering the supplies of used cars, increasing the amount of people in debt, during a ressetion doesn't sound like a good idea to me.

Could be good for a college grad, looking for a new yaris. But for us people with kid 4500 of a 30,000 van saves us $20 a month, and leaves us with less used cars to choose from.

[beefche]

In addition to the comments already made, I'm opposed to even more government spending. Where is this money coming from? Eventually the middle class (if not us, then our children) are going to be taxed to try to make up this.

Also, some of these clunkers are good cars. But they cannot be resold or used. They must be destroyed. That sounds wasteful to me.

Also, it doesn't make a lot of economic sense on a personal level. Most people who have clunkers do not have a car payment, low insurance rates, and low plate fees. With a new car, you now have a car payment, higher insurance premiums, and associated plate fees (depending on state). So, if a family is struggling with making ends meet with the clunker, their debt is rising if they turn it in for a new car. This may be a good idea for some families, but I think in general it's not a good economic idea for families.

[Just_A_Guy]

Originally Posted by beefche

Also, it doesn't make a lot of economic sense on a personal level. Most people who have clunkers do not have a car payment, low insurance rates, and low plate fees. With a new car, you now have a car payment, higher insurance premiums, and associated plate fees (depending on state). So, if a family is struggling with making ends meet with the clunker, their debt is rising if they turn it in for a new car. This may be a good idea for some families, but I think in general it's not a good economic idea for families.

Exactly. A lot of the stimulus has this philosophy of "we need to get people borrowing again!". Which means that at best we'll see another credit bubble and then, ten years from now, be in the exact same situation as we are today--only with an exponentially larger national debt.

[prisonchaplain]

I'm against it because my 1992 Buick LeSabre, a large American sedan, doesn't qualify. It got 19 mpg new, so the government says it's too fuel efficient. I guess there are other cars even less fuel efficient, as the program proved popular, but wow, if I can't qualify, I'm wondering what the real purpose is. IMHO, it's just a big splash so the administration can say it's done something about slow car sales, and helped the environment at the same time. There's no doubt that a few guzzlers have been destroyed, and a few fuel efficient cars have been sold, but, like so many stimulus programs, very little consideration is being given to value-per-dollar.

[boyando]

I hope this doesn't sound like bashing, but the problems of this economy will not go away if we spend a few billion to sell more cars.

Small businesses have alway pulled us out of hard times and we are doing nothing to make it easier to start a small business. What does that have to do with cash for clunkers? Higher unemployment means that a lot of these cars sold today will be repo's tomorrow.

[Palerider]

Blame it on Bush....its all his fault.....oopppss wrong thread.....LOL!!!!

The cash for junk is killing the used car market.....

[miztrniceguy]

did ya'll hear the part about accessing the cash for clunkers website makes your computer fed gov't property?

[beefche]

Yeah, niceguy. That's not scary at all is it?