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Hundreds of thousands of "clunkers" headed for scrappers may cause already rising prices for used cars to head even higher, dealers and market analysts warn.
The popular cash-for-clunkers program, extended by Congress last week with $2 billion more in federal incentives, requires that all the old fuel guzzlers traded in are scrapped not resold. That means up to 750,000 vehicles will never find their way into the hands of another owner. Many are at the end of their useful lives, but others, with years of life left in them, normally would be resold.
This is one reason why the government should have scrapped the Cash for Clunkers nonsense. How does an increase in the price of used cars help low or middle income families who can't afford a new car?
This is one reason why the government should have scrapped the Cash for Clunkers nonsense. How does an increase in the price of used cars help low or middle income families who can't afford a new car?
By offering them up to $4500.00 for their old one? Let's be honest, if we are TRULY concerned about the "middle income families who can't afford a new car", what's the chance of them getting $4500.00 for it as a traditional trade-in?
A used car is a much better decision, financially, but now the price of those used cars are being driven up by government intervention in the market.
A used car is a much better decision, financially, but now the price of those used cars are being driven up by government intervention in the market.
Please show me an <$11,000.00 used car with a new car warranty.
This is one reason why the government should have scrapped the Cash for Clunkers nonsense. How does an increase in the price of used cars help low or middle income families who can't afford a new car?
By offering them up to $4500.00 for their old one? Let's be honest, if we are TRULY concerned about the "middle income families who can't afford a new car", what's the chance of them getting $4500.00 for it as a traditional trade-in?
Alright, looking at Ford's website it appears that their cheapest car is the Ford Focus-Sedan.
Ford Vehicle Showroom
Let's do the math.
A family turns in their clunker for $4500 but they must buy a new car and they settle for the Ford Focus-Sedan. Now Ford's website prices the Focus at $15,995, so they put their $4500 towards the new Focus of course. They now owe $11,495 for the Ford Focus-Sedan. For a low or middle-income family, taking on over $11,000 in debt is not a good financial decision. A used car is a much better decision, financially, but now the price of those used cars are being driven up by government intervention in the market. So I ask again, how does paying more for a used car, or buying a new car they can't afford, help these people?
Hundreds of thousands of "clunkers" headed for scrappers may cause already rising prices for used cars to head even higher, dealers and market analysts warn.
The popular cash-for-clunkers program, extended by Congress last week with $2 billion more in federal incentives, requires that all the old fuel guzzlers traded in are scrapped not resold. That means up to 750,000 vehicles will never find their way into the hands of another owner. Many are at the end of their useful lives, but others, with years of life left in them, normally would be resold.
Clunkers program could drive used car prices up - USATODAY.com
This is one reason why the government should have scrapped the Cash for Clunkers nonsense. How does an increase in the price of used cars help low or middle income families who can't afford a new car?
What the poor family should be able to do is get $4,500 for selling their clunker to the government and then be able to do whatever the hell they want to with the money.
and if you car is better than a clunker the government should give us all about 6k per car.
It's only fair.
and then they could start giving us rebates for every mile under 12,000 a year we drove.
people with no cars----a flat 5k a year to cover mass trans, bike repair, new shoes etc.
saving energy will make us all rich !!!
The point was that for a family that can't afford to take on $11,000+ of debt then a used car is obviously a better choice for them.
A used car is a much better decision, financially, but now the price of those used cars are being driven up by government intervention in the market.
Please show me an <$11,000.00 used car with a new car warranty.
That's the tradeoff between a new and used car. The point was that for a family that can't afford to take on $11,000+ of debt then a used car is obviously a better choice for them. Would the new car with the nice warranty be nice? Of course. But if you can't afford it you can't afford it. Therefore, the Cash for Clunkers program hurts those that still can't afford a new car by raising the prices of used cars.
The point was that for a family that can't afford to take on $11,000+ of debt then a used car is obviously a better choice for them.
Obviously? Are you serious? How does a used car WITHOUT a warranty help the owner when said used car breaks down and becomes useless? Not only is the "middle income families who can't afford a new car" now stuck paying for POS car, but they can no longer use it as transportation? Obviously? Please....
some of you people will bitch and cry that a golden apple doesn't taste like fucking steak.
Fixing a broken car is cheaper than buying new. If your car breaks you're only without transportation until it's fixed.
The point was that for a family that can't afford to take on $11,000+ of debt then a used car is obviously a better choice for them.
Obviously? Are you serious? How does a used car WITHOUT a warranty help the owner when said used car breaks down and becomes useless? Not only is the "middle income families who can't afford a new car" now stuck paying for POS car, but they can no longer use it as transportation? Obviously? Please....
Fixing a broken car is cheaper than buying new. If your car breaks you're only without transportation until it's fixed.
My 19 year old just bought her first car. She searched for about 5 weeks and found a '99 Corolla w/90K for $4500. She put down $1,200 and is paying us back the rest of it. It'll take her awhile before she's done.
My brother wanted to know why we didn't just sell her my husband's '04 Corolla (we bought it new, it has 55K on it) and just buy a new car? Because we can't afford a new car, because we don't know how we'd make those payments if my husband lost his job, because we finally don't have any car payments and firmly believe in buying the best we can afford and taking care of it - which is exactly what we did.
If someone was going to buy a new car anyway, or can afford a new car, the cash for clunkers program is icing on the cake for them (like jsanders). If you can't afford the payments of a new car . . . why would you take on the debt?
