Kasz216 said: Hah I was surprised you hadn't made a post about this when i saw it a couple days ago.
I don't get why they think this is a good use of stimulus money.
It'll stimulate the economy.... until the program stops. Then there will be a drought of people buying cars... since everyone bought one earlier then they planned. |
Actually, I think it's a a great use of stimulus money.
I am not for this kind of thing, as in the end it will do nothing. But, being the choice has been made to try and borrow our way out of debt, this is a far better way to spend it then what we have done in the past.
Also, the end user never needs to work with the government. You trade your car in, and the dealer gives you the 3,500 to 4,500 in trade in. It's then the dealers responsibility to get reimbursed from the government.
It will be interesting to see how well that goes. So far, dealers getting paid has been less then stellar.
Oh, and while it is creating sales, it's not really saving the consumer any money. I just bought a Jeep, and being it gets poor gas mileage, it's not a car anyone cay buy on this program. I got it for $2500 less then invoice, with 72 month 0% interest. If you were to get a 60 month 5.9% loan, the deal I got is like getting $6000 below invoice.
The cars that people can buy under the cash for clunkers program, are now in high demand, meaning they are hard to find, and going for close to MSRP (for my Jeep, with a 5.9% loan, that would have been $10,000 more then I will end up paying).
So, good for moving cars. Not so great of a deal for consumers.