The Real Cost of Cash for Clunkers
My 1995 Chrysler LHS, which I dearly love, is starting to become cranky about certain issues. With a heavy heart, I have decided it must be replaced. My husband and I don't buy new cars. When you drive a new car off a lot, it's value drops by 15%-20%, and we don't like car payments, preferring to pay cash.
But guess what. Cash for Clunkers, Obama's stupid program which destroyed perfectly good cars, has left a huge hole in the used car market. Not only are there not very many used cars available, but the price has been driven up. This means that my husband and I helped kick in a $4500.00 rebate to folks so they could buy a new car, which they either intended to buy anyway, or probably couldn't really afford, and we will end up paying as much as $1000.00 or more for a good used car. That is, if we can find one.
Before "welfare for cars" rolled out, anyone with three black eyed peas rolling around in their head knew this would happen. Can the result be called an "unintended consequence."? Why no, no it can't!
Related:
USA Today: Clunkers program could drive used car prices up
3 comments:
Ooh, who knew the truth could be so hurtful?
ever seen Casablanca? (I know, dumb question)
I'm shocked SHOCKED that such a thing would happen here!!
You are absolutely correct. Before cash for clunkers was passed, charities that rely on the revenue from car donation told politicians that destroying the c4c cars would cost them and auto repair shops a lot of money and also raise the price of used cars. We asked that the c4c cars go to charity. Those cars in bad shape would be scrapped. Those in good shape would be sold or given to the poor. This would have eliminated the "unintended consequences" which of course weren't unintended at all!
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