We All Became New Owners for Half A Million New Cars
by Tran, Harry ~ August 21st, 2009. Filed under: My Writings.http://money.cnn.com/galleries/2009/autos/0908/gallery.cash_for_clunker_trade_in/6.html
For one reason or another people will find a reason to complain, and if you go to cars 4 and 5 on the article you will see many excluded from the plan complain.
The best remedy for this was not to implement such a plan which classifies who can participate to begin with. Especially when the classification was based on a decision made years ago about the kind of car you would be driving.
Now that the program is winding its way down and end this coming Monday I can see frustrated potential buyers who couldn’t get a car avoid the dealership for some time.
Simple economics dictates that dealers will further lower prices six months down the road when their performance sheets suffer, at that point I’m sure they will offer up rebates that even the CARS program can’t beat out.
This will cause an uproar of upset CARS buyers, who feel like they got ripped off once again for buying too soon. To them, I say you never had to buy a car on another persons dime either but you choose to do so, live with it.
To those who waited, they will not only be able to buy a cheaper car, and not be tied and limited in their options and models, but they will know they did so without asking someone else to help them pick up the tab.
And my last question to Congress, will we ask for some of that money back later when these new owners sell their cars? Because they wouldn’t have been able to have the car without help, I feel that they will take home $4500 to their bank by selling the car in the future.
Maybe I’m a bit frustrated by not being able to take my 36mpg car in for a new car, but I also did not want to pass the dime and in the end that’s what angers me that half a million people passed the dime to us without a care, but incentives drive demand and that would be one hell of an incentive.
