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
