The Downside of Cash for Clunkers
by D. Michael Waller
Looks like this program is coming to a halt next Monday. What a mess this has turned out to be. Seems that this wasn't thought out before hand. Let me give you my thoughts about this, the items about this program that someone forgot to think about. Or maybe they did,,
One, lets take people who have a car that is paid for, that means no payments, and put them into debt with a car loan that they can't afford. If they could afford a new car, I believe they would have already bought a car. So we now have folks living on the cusp that with any hiccups in their life will be in trouble. There is a reason they drive $1,000.00 cars. These poor folks are paying a high interest rate on these loans. Who is benefiting from this? Would it be the banking industry? It sure isn't the dealers holding worthless junk iron waiting for their checks from the government.
Two, the government is mandating that the cars be crushed. It is estimated that when the program ends, there will be 750,000 cars traded in. Now, lets take three quarters of a million inexpensive cars off the road. Now what, I'll tell you, a sharp increase in the price of low end cars. Again, the folks living on the cusp now will need to pay even more for a cheap car for work. These are the folks that couldn't take advantage of the program but will need a car sooner of later. Either way, our " not doing so well " friends get it coming or going. How is this helping them?
Three, who is benefiting from this program, lets see, how about the car industry in Japan. 6 out of 10 cars sold through the program are foreign. Toyota has a 18.9% market share at this point.
Oh, you say, what about GM? GM is now putting in a guarantee to their dealers on the Cash for Clunkers Program that if the Government doesn't pay, they will,,,, I'm sorry, but does this sound like the government bailing out the government??
Four, What is happening to all those cars that are being crushed?? Guess what, besides our cash being the number one export for the US, we are shipping our scrap iron, [ crushed cars ] to China to be fabricated into products to be sold back to us. Again, who is benefiting? China
And now that this program worked so well,,, they want to do washing machines next
Okay, lets recap here. Who is benefiting here, Japan, China, The Banking Industry, The Government, Who is getting the short end on the deal, The Dealers, the Buyers, and ALL of Us in the US because guess where are the 3 billion dollars coming from, Us!!!
Thank goodness the Car Dealers in New York State figured this out and started the revolt against this program. They realize they could make more more money on these trade-ins and not deal with the headaches of dealing with the government. Remember the problems with the Federal Website,, " We now own your computer " Geez,,, and they are coming for your washing machine next, then the toaster, then the lawn mover,,,,,,,,,
by D. Michael Waller
Looks like this program is coming to a halt next Monday. What a mess this has turned out to be. Seems that this wasn't thought out before hand. Let me give you my thoughts about this, the items about this program that someone forgot to think about. Or maybe they did,,
One, lets take people who have a car that is paid for, that means no payments, and put them into debt with a car loan that they can't afford. If they could afford a new car, I believe they would have already bought a car. So we now have folks living on the cusp that with any hiccups in their life will be in trouble. There is a reason they drive $1,000.00 cars. These poor folks are paying a high interest rate on these loans. Who is benefiting from this? Would it be the banking industry? It sure isn't the dealers holding worthless junk iron waiting for their checks from the government.
Two, the government is mandating that the cars be crushed. It is estimated that when the program ends, there will be 750,000 cars traded in. Now, lets take three quarters of a million inexpensive cars off the road. Now what, I'll tell you, a sharp increase in the price of low end cars. Again, the folks living on the cusp now will need to pay even more for a cheap car for work. These are the folks that couldn't take advantage of the program but will need a car sooner of later. Either way, our " not doing so well " friends get it coming or going. How is this helping them?
Three, who is benefiting from this program, lets see, how about the car industry in Japan. 6 out of 10 cars sold through the program are foreign. Toyota has a 18.9% market share at this point.
Oh, you say, what about GM? GM is now putting in a guarantee to their dealers on the Cash for Clunkers Program that if the Government doesn't pay, they will,,,, I'm sorry, but does this sound like the government bailing out the government??
Four, What is happening to all those cars that are being crushed?? Guess what, besides our cash being the number one export for the US, we are shipping our scrap iron, [ crushed cars ] to China to be fabricated into products to be sold back to us. Again, who is benefiting? China
And now that this program worked so well,,, they want to do washing machines next
Okay, lets recap here. Who is benefiting here, Japan, China, The Banking Industry, The Government, Who is getting the short end on the deal, The Dealers, the Buyers, and ALL of Us in the US because guess where are the 3 billion dollars coming from, Us!!!
Thank goodness the Car Dealers in New York State figured this out and started the revolt against this program. They realize they could make more more money on these trade-ins and not deal with the headaches of dealing with the government. Remember the problems with the Federal Website,, " We now own your computer " Geez,,, and they are coming for your washing machine next, then the toaster, then the lawn mover,,,,,,,,,
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