Now - Cash for Clunkers:
The first rollout of this bill – the Cash For Clunkers Program – was so ridiculous and such a fiasco that it hardly seems necessary to go into much detail.
- So you have a clunker that’s paid for. But it’s better for you to go into debt to the tune of about $20,000 or more than get a few more years of use out of that clunker? Who is really the winner here – the consumer – or the auto dealerships and banks? Oh, wait – we already knew they were government favorites, right?
- This is short term gain and long term loss. What happens to the used car market over the next few years? This is the market that has been necessary for people who cannot afford to buy a new car. Now these vehicles, all of which were required to be DRIVEABLE in order to be eligible for the program, are intentionally destroyed. Talk about government waste! THANKS, GUYS.
- This is a deal with the devil. Upon contract date, the consumer had to turn over possession of the vehicle to the dealership, even before the dealership knew whether or not the vehicle would truly qualify under the extremely complicated application process required by the government. If the applicant lies about anything on the application, and the app is denied, it is up to the dealership to recoup the money. Now – do you really think they intend to be left holding this bag – or do you think they were able to build in that wiggle room to cover their, err, assets? Who do you think paid for that cushion?
- As of Sept 2, 2009, only 5.7 percent of the Cash for Clunkers dealer claims had been paid by the government. In fact, more claims have been rejected than have been paid. (NADA, Sept 2009)
Stupid, stupid idea, based on some very flawed economic principles. Let's encourage debt, rape the next five years of the used car market, and eat wedding cake for breakfast now and go hungry tomorrow by creating a false and unsustainable buying frenzy.
Then let's use the typical skills, or lack thereof, of government workers to actually develop the website and the processing system, burdening the dealerships and consumers with a myriad of incomprehensible forms and regulations, creating a bottleneck of backlogged claims (ie, kicking the car market in the kahunas - with love like this, who needs enemies?), and hey - while we're at it, let's destroy thousands and thousands of vehicles by pouring corrosives into their engines!
WHAT A GREAT IDEA!