T Nation

We're All in the Used Car Business


#1

http://autos.yahoo.com/articles/autos_content_landing_pages/1008/senate-passes-cash-for-clunkers-program/;_ylc=X3oDMTE5djJwcmo2BF9TAzI3MTYxNDkEc2VjA2ZwLXRvZGF5BHNsawNjYXNoLWNsdW5rZXJz

Fantastic. I can't imagine any abuse here. Start hauling cars from the junkyard into dealers if you want a new car partially subsidised by the taxpayer.

Didn't we predict tax payer subsidies for new cars? That sure didn't take long.


#2

Not that I agree with this by any stretch of the imagination, but it's not quite that bad. You have to have owned and insured the vehicle you are "trading in" for at least one year, and the program itself is only supposed to last one year. So, if you have an old beater (it must be less than 25 years old though), sitting in a barn that you've kept the insurance up on, you can get yourself a pretty good deal.

Here's one you probably didn't think of. My two parents have three vehicles (don't even get me started on this) and had planned to give the '98 acura to my younger sister. Just last week my mom was driving it, somebody pulled out in front of her and she totaled the car. Now they will get ~$4500 from the insurance company and be able to buy it back for probably $1000-$1500. They don't need to do anything to make it drivable again, and can trade it in for likely the full $4500 (it got crappy mileage). All of the sudden they've got $8k for a new vehicle when the real trade-in on that would have been considerable less.


#3

The problem is where the money is coming from.


#4

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#5

It's not coming from anywhere, it's being made off the presses.


#6

There is not one single transaction that this bunch doesn't see a role for itself in.


#7

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