Comments on: Cash for Clunkers (CARS Program) Hits a Speed Bump, Gets 2 Billion in Additional Funding-Good or Bad Idea?

By: RC

RC — Tue, 18 Aug 2009 00:58:20 +0000

@KM- Unfortunately, I think you are correct, and while it is a boon now for automobile dealerships, their sales will likely go down (even lower than normal) after the program is over.

By: KM

KM — Mon, 17 Aug 2009 20:57:38 +0000

Cash for Clunkers is creating an artificial demand for vehicles. It skews the market and the car companies don’t have to provide higher value at a lower cost because the government is picking up the tab for their ineffectiveness. Not everyone qualifies for the program yet, EVERYONE is paying higher taxes or higher prices driven up by higher taxes in other market segments.

In the short-term there is a flurry of buying because the government will give some people $4,500 for their old cars. People should be paying off their debt and saving money to weather the future. So should our government be doing the same.

By: RC

RC — Sun, 16 Aug 2009 12:33:29 +0000

@DFH- I agree with your 1st point to a degree, I think a lot of people that are participating probably don’t really need the assistance, or are trading in their paid off clunkers for a car note, which is probably not a great idea for some people.

By: Debt Free Hispanic

Debt Free Hispanic — Thu, 13 Aug 2009 19:21:20 +0000

I think this is a horrible deal. Very few folks who are trading in clunkers for newer cars can afford to do so. The others will need their own bailout. I don’t understand how people think that this is a good deal. Trading in a car for a car note. I don’t think the $4,500 off is worth it in my opinion, not for a car that depreciates as fast as vehicles do.

That’s why i’m investing in my education because that is what keeps pushing me up in this economy. Have fun in your new car everyone, i’ll keep my money and my clunker until the wheels fall off.