Reply to "Cash For Clunkers Program is a Clunker!"

The re-distribution of wealth is always difficult. I am not sure how great a deal it is for the consumer. You take a car you would have gotten $1000 for. You could have bargained the dealer for at least $1000 off the cost of the car and you would have gotten descent money for the car. Instead you settle for the cost of the car as stickered - $4500 and I doubt the dealer will cut you other breaks any where else. It's not pick nick for the dealer.

Did it do anything? You have a junk Impala that gets 12mpg. Your plan was to go to a used car lot and get a $6000 car that gets 28mpg figuring you would have the junk impala crushed or sold for parts. Instead you trade it for a car which is sticker for $24k, $28,500 with options out the door. - $4500 which makes it $24,000 out the door.

Now you have a loan for $24,000. The banks used to require 20% down. After regulations requiring that loans be made more accessible to those who could not afford loans now you get most of the loan up front. But now, instead of the 20% down to protect their investment they want you to pay for insurance encase you loose your job, or otherwise cannot meet your contract. This protects the bank but cost you $100/month extra!!! It's only an extra $100/month so the loans can be accessible to those who cannot afford them.

And thus we have government involvement in free enterprise blaming free enterprise for a system that doesn't work.

And after all that, all we are doing is getting people in cars which they should not be in, re-inflating a bubble as fast as we can!!

Anyone got a pin?