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      08-12-2009, 06:08 PM   #11

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Originally Posted by Phil G View Post
One thing I'll be very interested to see is how auto sales will be next year since people have already bought cars during this program. I'm speculating auto sales will be dramatically lower next year as many just chose to buy a car this year rather than in the next couple of years because of the program.

What makes me mad though is that the cars that are traded in through the program are just absolutely WASTED! Just wasting a still perfectly serviceable asset just is crack-pot economics. Think about how many people who can't afford a decent form of transportation could benefit from a government bargain-basement sale of these cars, especially for those in low-income brackets who could really need the utility offered by a people-hauler and/or truck destroyed by this program! It wouldn't hurt the government to get some money back as the allotted money for this program is being drained so quickly! I know it's for environmental purposes, but c'mon, these cars aren't going to last forever, eventually those who bought "clunkers" would buy more fuel efficient cars as they trickle down from those who could afford them first (especially as fuel-efficiency is becoming such a primary goal with automakers, and consumer taste is changing away from gas-guzzlers).

Getting rid of the clunkers has the net effect of raising back up the value of the cars still left (as in your car and my car).

This is good, since a ton of people who weren't upside down in their loans before the economic crash, will go back to not being upside down in their loans. The economic crash and high gas prices really sunk the values a lot of people's cars. This program pushes those values back up towards where they were before.

This is good, because more people will now be able to actually sell their used cars for enough money that they can buy a new car. Thus we get even more economic stimulus out of money we've already spent.


Besides, one of the major points was to get these cars off the road so they wouldn't continue to waste gas, sending tons of cash overseas strengthening our enemies. The average improvement in this "fleet" of C4C cars is 61% less fuel.

The way I see it, that is a 61% bigger hit against our enemies compared to leaving them on the road. And they can suck my tailpipe.