I'll give you $4,500 I don't really have for your paid-for asset. Then, you can take out a loan you may or may not be able to afford for something to replace it. Didn't we do this with houses just a few years ago?
What's worse is the genius government is destroying these vehicles. Most of them work just fine. What does the destruction & dumping cost? Is the government really shelling out $6000 per vehicle?
Why aren't we taking these vehicles to the third world and dumping them on the market for $1500 each? We'd at least pay for the shipping and make a little money back. Those places would benefit by having more affordable transportation... for a while anyhow. Transportation would be more available too. Our car parts makers would get more orders for years, making us more money. The European mob figured this one out. Read this: http://news.yahoo.com/s/time/20090807/wl_time/08599191525000
The other problem is inventory. Dealers and car makers have a high inventory right now. This program will, no doubt, ease that burden and save some jobs right now. What happens in two or three years when many of the Cash for Clunkers people were going to replace their cars anyhow? They won't need a new car and we'll be back in the same boat.
Cash for Clunkers will slightly upgrade the fuel efficiency of the cars on our roads, and I'm all for keeping the environment a little cleaner, but there must be a better way.
I don't blame people for taking advantage. If I were in the market for a new car, I'd take advantage of the government "acting stupidly" too.
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