Was Cash for Clunkers really a Deal?
 

Found this interesting. Got it from an email from my mom.


Now, Let me make sure I have this right



Lets see how the stupid car buyer got taken to the cleaners on the "cash for clunkers" government program,

Say he trades in an old car worth $3500
The government gives him $4500 off the price of a new car.
That looks like a savings of $1000.
Are you watching my hands closely now?
Lets go further.

Wait a minute, you have to pay taxes on the $4500 come April 15th.
This is something the government didn't tell you.
If you are in the 30% bracket, you must pay $1350 on that $4500.
So, rather than save $1000, he actually pays the Fed $350

The stupid car buyer also got ripped off by the dealer.
When "cash for clunkers" came along, dealers stopped discounting cars.
Instead they began selling them at list price.

For example, every Ford dealer was selling the Ford Focus with all the goodies, including A/C, auto transmission, power windows at $12,500 before the "cash for clunkers" program.

After the program was announced, they stopped discounting and charged list price for the Focus at $15,500. Chevy, Honda, Toyota, and Kia all played the same list price game

Did we mention the state got its sales tax on the extra $3,000 you paid on for the non-discounted car?

So let's do the final math on this program for the stupid car buyer

You traded in a car worth: - $3500
You got a discount of: +$4500
You have to pay taxes - $1350
You paid list price +$3,000
----------
Net -$3350

The Obama administration gushed this as a hugely successful program. Now I understand. Just wait until we get health care with "no additional costs"over what we pay now

It was "hugely successful" at getting people out of inefficient cars into more efficient ones.

what about the $4500 you got for the car that was worth $400?

Right, and then remember the price jacked up $3k plus probably another $1k+ from taxes.

Don't believe for a second that "cash for clunkers" was a failure.. There may be a couple people that it didn't work out for financially when trading in a car worth close to or at what the Government was offering but for the most part it was a huge success.

Any facts on that 30% tax on the 4500? Sure it wasn't just your standard tax everyone pays when buying a car and during the car buying experience?

Regardless..

-Like mention how was it a failure for the people with cars worth just hundreds?

-How was it a failure for the dealers that had record sales?

-How is it a failure that people now have new, more fuel efficient, and more reliable cars then what they traded in?

Also keep in mind if Obama brought World Peace to us all the FOX news headlines would read "Obama shuts down multiple businesses and wastes billions of dollars, is this who you want for your Pres?" (of course referring to the companies that survive off of war and the waste of current equipment)

It was a scam. I would really like to know who benifited from it. Apparently my GTO wasn't ****ty enogh

God! More "obama hatin" stupid tea bagger's bull crap.
Who didn't know that their would be taxes?
Who over paid for their car?
Who is in the 30% tax bracket?
And who said you couldn't negotiate a price with the dealer? The gov't only guaranteed the money.

And your article left out the fact that Obama's also hates un-educated, un-wed teenage mother's. That's right folks, because of the cash for clunkers program a charity in Texas that used old cars for donations lost a ton of revenue, and it's all Obama's fault.

I also heard that the clunkers where sent to china to be made into bombs to bomb us. This is true!! I got it in an email!!!! :cyberguy:

:mrgreen:

I'm not hating on him, just saying this is something someone had sent me and thought I would share.

I also got an email stating I could become a millionaire with the help of a Nigerian Prince.

And what we are saying, and whats obvious is that the email you got is wrong, twisted truth, and even possibly a lie.

I got an email the other day from a guy saying he found my inheritance of $1,234,765.30.. I just needed to send him a finders fee of $300... I'll forward it to you, you can have the money. :mrgreen:

This. In order to hit the "30%" bracket, actually 33% for '09, when filing single, you need to make over $171,000. I really don't think someone in that bracket gives a **** about $350. I don't think they'd even have a clunker to have traded in or even attempted to take advantage of the offer.

that email is really misleading...
some dealerships even matched the clunkers incentive with their own!

check this out though- hard to believe this is a list of some of the cars that were clunked!
Individual Vehicles
1987 Buick ASC GNX
1997 Aston Martin DB7 Volante
1997 Bentley Continental R
1989 20th Anniversary Pontiac Trans Am
1992 GMC Typhoon (no!)
1985 Audi Quattro
1992 BMW 850i
2006 Audi A4 Convertible
2006 Cadillac STS
2008 Foose F-150 (2)
2007 GMC Acadias (3)
2008 Hyundai Accent (see above)
2006 Nissan 350Z Roadster
2006 Roush Stage 3 F-150 (2)
2006 Toyota Corolla
2005 Mazda RX-8
2002 Kia Spectra
1988 Aurora Cobra kit car
1996 Buick Funeral Coaches/Hearses
1987 Duntov GT
1987 Excalibur Autos Phaeton
1990 Honda CRX (Less than 18 mpg?)
1985 Maserati Quattroporte
1999 Mercedes C43 AMG
1985 TVR 280i convertible

all cash for clunkers did was move buyers from buying in the 4th quarter up to the 3rd quarter. so 4th quarter ended up dropping. in addition they destroyed tons of perfectly good cars which raised the price of used cars and parts. and now people arent buying new cars because they are holding off hoping that obamama will restart the program.

-I guess if you compare 3rd quarter sales (with the cash for clunkers program) to the 4th quarter sales (without the cash for clunkers program) there would be a drop. End of year did the cash for clunkers raise sales? YES..

-Used car prices are up, that's because there's less of them, But its a problem that will natural fix itself every single day as cars get older becoming used and more get traded in. Do you own a car? Then its used, and now its worth more both privately and for trade in..

-The program was cash for clunkers... Not "cash for perfectly good cars"... anyone who traded in a perfectly good car is to blame... not Obama.

Whats your next argument... All the driving people did to get to the dealers caused extra pollution ='s Obama is responsible for a rise in poor air quality?

I traded in my 1989 Mercury Grand Marquis with 175k on the clock, and ran like a raped ape. Got $3500 from the C4C program towards the purchase of my 2010 Scion xB. Cool thing about scions, theres no haggling, no price shifting, nothing.

oh, and i also traded in my 2005 scion xB. I think i made out pretty good with the C4C program.

walked into dealership with a clunker worth about $400, and my 2005 Scion xB. I left the dealership with a 2010 scion xB, same maturity date on loan, lower payment, and NO money out of pocket.

Big Jim please don't come on a public forum and lie about your experiences with a government run program. Glenn Beck told me that people like you don't exist, so I refuse to believe you. Thats right my eyes are closed right now.

(This message was not intended to offend the OP, Big Jim, or anybody else with a brain)

also the money you save from not buying gas as much!

I think this C4C deal made alot of people who really didn't have the money to afford to buy a new car buy one thinking it was such a great deal. I would love to see if my theory that these cars will have a much hire default rate on their lows then without the program.

it was up to 4500 i believe. if you had a 400 dollar car most dealerships gave you like 1000 for it. that's what i heard. so the deal, to me, wasn't that great.