Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Cash for clunkers may destroy second hand car market
Khabrein.Info ^ | Aug 1, 2009 | Khabrein.Info Correspondent

Posted on 08/01/2009 8:17:19 AM PDT by PureSolace

New Delhi, Aug 1, 2009: Will cash for clunkers destroy second hand car market in the US? Many people are asking the question ever since the cash for clunkers program was introduced by the Federal government just a week ago.

Yesterday the Federal government put its stamp on extension of the program and the increased funding for people who wanted to get rid of their gas guzzling clunkers.

The US House gave its nod to the extension of the program and 2 billion dollars more in funding. This will give some hope to clunker owners who thought that they may not be able to benefit from the program.

But with the number of people rushing to get rid of their old cars, and go for new, and fuel efficient ones, experts are saying that it may kill second hand car market in the United States.


TOPICS: Business/Economy; Crime/Corruption; Government; News/Current Events
KEYWORDS: 111th; cash; clunkers; doom; for
Here's an India news site take on our Cash for Clunkers program...
1 posted on 08/01/2009 8:17:19 AM PDT by PureSolace
[ Post Reply | Private Reply | View Replies]

To: PureSolace
This just means I can get that used Toyota Tundra 4x4 I've always wanted for a lot cheaper.
2 posted on 08/01/2009 8:19:55 AM PDT by E. Pluribus Unum (Islam is a religion of peace, and Muslims reserve the right to kill anyone who says otherwise.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: PureSolace

The left does not want low income people driving cars. They want them in public transit.

Highways and cars are for trust fund babies and government officials.


3 posted on 08/01/2009 8:22:08 AM PDT by BigBobber
[ Post Reply | Private Reply | To 1 | View Replies]

To: E. Pluribus Unum

It will totally destroy the used car market. As of now, your used car is worthless.


4 posted on 08/01/2009 8:22:39 AM PDT by RC2
[ Post Reply | Private Reply | To 2 | View Replies]

To: E. Pluribus Unum

Not unless they make it illegal to sell used cars....which is not to far fetched.


5 posted on 08/01/2009 8:22:41 AM PDT by Dallas59 ("You know the one with the big ears? He might be yours, but he ain't my president.")
[ Post Reply | Private Reply | To 2 | View Replies]

To: E. Pluribus Unum

Actually it will drive up the prices of all cars..new or used. The govt just increased the amount of money buyer have to buy cars. Plus the minimum price for a running clunker just became $4500. Why sell for less? That means that the price of all used cars will go up and there will be less of them. New car prices go up since stupid buyers will be willing to pay higher prices because they suddently have a down payment with the clunker.
Just more dollars chasing fewer goods..


6 posted on 08/01/2009 8:24:14 AM PDT by Oldexpat
[ Post Reply | Private Reply | To 2 | View Replies]

To: PureSolace

Cash for Clunkers will prove to be a massive fraud and failure on a hundred different levels.
It is an appropriately “homely” and apparently “harmless”
piece of feel-good indirect social engineering that the Zero Adminstration probably thought they could pull over on us because they managed to wrap it in a cute “non-profit” kind of name like Cash for Clunkers. Every ongoing failure and negative repercussion of it, though, will be spun as positive (think LONG-TERM , people!), and it will I hope wind up serving as a PERFECT SYMBOL for how and why this Administration should not be entrusted with ANYTHING in your life, and should not have ANY access to your or your children’s pocketbook. A great deal should be made of what looks like the inevitable massive failure of this program.......yeah, I know so far it’s only a BILLION......see, that’s the problem when these criminals have already gotten people accustomed to hearing about HUNDREDS of billions, and TRILLIONS.


7 posted on 08/01/2009 8:25:51 AM PDT by supremedoctrine (Time is the school in which we learn that time is the fire in which we burn.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: PureSolace
This program is as stupid as FDR having cows and pigs killed and fields of grain plowed under to drive up prices.

The people most affected will be the poor who otherwise would have bought those cars. Get used to walking because the gooberment doesn't want you driving.

8 posted on 08/01/2009 8:25:58 AM PDT by KarlInOhio (Obama's medical nationalization bill reads like Atlas Shrugged with doctors instead of railroads.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: E. Pluribus Unum
Less, used Toyota tundras available means more cost for the used ones available. Flunk out of the supply demand thing I see.

But then not to many people want to buy the pile of garbage so you may be correct.

9 posted on 08/01/2009 8:26:52 AM PDT by org.whodat (Vote: Chuck De Vore in 2012.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Oldexpat

As long as the used car was rated at more than 18mpg, it does not qualify for the $4500 rebate, so it remains at “willing seller-willing buyer” price.


10 posted on 08/01/2009 8:28:41 AM PDT by BwanaNdege
[ Post Reply | Private Reply | To 6 | View Replies]

To: BwanaNdege

Of course, the used, full sized pickup truck & 4x4/SUV market now has a $4500 minimum price.


11 posted on 08/01/2009 8:30:37 AM PDT by BwanaNdege
[ Post Reply | Private Reply | To 10 | View Replies]

To: PureSolace

This policy will, like many other things the evil federal government does, hurt the poor. They now have to pay more for a used car.

This is similar to when the federal government destroyed food when the poor were malnourished and hungry during the Great Depression.

Hay, wasn’t Obama going to buy us gas?


12 posted on 08/01/2009 8:31:50 AM PDT by MichiganConservative (Tell the public schools: "Don't be mind-rapin!")
[ Post Reply | Private Reply | To 1 | View Replies]

To: KarlInOhio
This program is as stupid as FDR having cows and pigs killed and fields of grain plowed under to drive up prices.

Apt comparison. Libs are economic imbeciles.

13 posted on 08/01/2009 8:34:13 AM PDT by Mr. Mojo
[ Post Reply | Private Reply | To 8 | View Replies]

To: PureSolace

Stores and manufactures/Markets affected:

Used cars

Car repair/upkeep

Aftermarket parts

Car restoration

Charity use of cars

Training to fix cars

Rare Parts stores

Isn’t the plan actually about the move to public transportation/limitation of individual movement, bicycles and walking?

Deconstructing America and its cities. Breaking the love affair between Americans and their cars, classics and care for their cars.


14 posted on 08/01/2009 8:34:58 AM PDT by combat_boots (The Lion of Judah cometh. Hallelujah. Gloria Patri, Fili et Spiritus Sancti.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: PureSolace

The federal government is changing the rules as it goes. Suddenly, a number of cars have had their mpg rating retroactively increased to make them inelegibile for this program.

This is a total joke and fraud. The government should not meddle in the market.


15 posted on 08/01/2009 8:36:07 AM PDT by MichiganConservative (Audit the Fed, then abolish it. Destroy the lifeblood of tyranny.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: PureSolace

This CashForClunkers scheme is just another example of how Leftists LOVE to control. To them America (the world in general) is like a dashboard with a million knobs, dials, switches, sliders, etc with only themselves behind the panel. Turn a dial, if it breaks, turn in even more. Slide a slider, if something screws up, slide it all the way. Flip a switch - if something blows up, flip a few more similar switches. When nothing works, just randomly slide, flip, turn.. until Americans get so fed up they kick the commie socialists out of the control room. Republicans take over and install a new panel with just a little fewer knobs, switches, sliders and dials.


16 posted on 08/01/2009 8:41:08 AM PDT by libh8er
[ Post Reply | Private Reply | To 1 | View Replies]

To: BwanaNdege
Good point. Also, the uncertainty of this program's future parameters provides great uncertainty to the market.

For example, the government can, at any time, make the mileage requirement much lower to exclude more models. It can also exclude specific models and makes by name.

The uncertainty of the program's future is what makes it such a joke.

Some dealers are even doubtful if they will ever get the rebated money from the federal government even though they have fully complied.

The dealers have to prove they destroyed the trade-ins before they are paid so if the feds refuse to pay, the dealer cannot even sell the vehicles to recover their losses because they have been required to destroyed them.

How would you enforce a claim if you are a dealer? Would you sue the federal government? Good luck with that.

This program is the biggest mess I have ever seen. What a joke!

17 posted on 08/01/2009 8:41:12 AM PDT by NoControllingLegalAuthority
[ Post Reply | Private Reply | To 10 | View Replies]

To: MichiganConservative

And that’s not the only thing the government shouldn’t be meddling in. I’m sure you know the answer to this: since when is our government been in the business of owning car companies and banks? 3 1/2 years can’t go by quick enough!


18 posted on 08/01/2009 8:43:38 AM PDT by no more apples (now what??)
[ Post Reply | Private Reply | To 15 | View Replies]

To: PureSolace

They SELECTIVELY got rid of some of the dealers and THEN put this program into effect. The $4500....pure profit for the dealers....and right up front!! What a scam!!


19 posted on 08/01/2009 8:44:38 AM PDT by Sacajaweau
[ Post Reply | Private Reply | To 1 | View Replies]

To: E. Pluribus Unum

Actually, I think it will make the used SUV more expensive. There will be fewer of them. The whole supply and demand thing...


20 posted on 08/01/2009 8:46:41 AM PDT by Mom MD (Jesus is the Light of the world!)
[ Post Reply | Private Reply | To 2 | View Replies]

To: PureSolace

A local man turned in his Cadillac. It looked like a sharp car, and I had never seen dirt on it. He bought a Prius. I will wonder if his Cadillac ever gets back on the road contrary to the rules.


21 posted on 08/01/2009 8:48:15 AM PDT by healy61
[ Post Reply | Private Reply | To 1 | View Replies]

To: E. Pluribus Unum

No, that used Tundra must become more expensive. “Clunkers” are not being resold, they are being destroyed and taken off the market. There will be fewer used cars available, increasing their costs.

Cash for clunkers is an example of the Broken Window Fallacy in action. It only makes sense if you assume that the benefit of removing “gas guzzlers” from the fleet outways the costs, an assumption that I do not share.


22 posted on 08/01/2009 8:49:17 AM PDT by Lonesome in Massachussets (Don't anthropomorphize the robots. They hate that.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: PureSolace

Used cars will go up in price as well as new cars. The federal government is doing to the car market the same thing it has done to healthcare costs and college tuition.


23 posted on 08/01/2009 8:49:38 AM PDT by upsdriver
[ Post Reply | Private Reply | To 1 | View Replies]

To: Oldexpat

Actually, all the cars traded in on the cash for clunkers have to be destroyed. I’m ready to downsize (kids are now driving) and even thought about this program (about time I got some of my tax dollars back). Once I found out they destroy the cars traded in, I changed my mind. Why should my perfectly good 5 year old Expedition be trashed (not even sold for parts, just scrapped) when it still has many good years in it. Talk about wasteful!
However, when I want to sell it, I see the price going up, as the government is eliminating my competition for me!


24 posted on 08/01/2009 8:49:42 AM PDT by Mom MD (Jesus is the Light of the world!)
[ Post Reply | Private Reply | To 6 | View Replies]

To: PureSolace
Here's my take on this "Cash for Clunkers" fraud.

1) People driving older cars, have lower insurance rates
....and most likely no monthly car payment.
2) Now they have an attractive carrot dangling in front of
...them with this possible $4500.00 prize.
3) If they had to drive older cars due to lack of money
...what makes them think they can afford higher insurance
....in addition to a new monthly car payment?

25 posted on 08/01/2009 8:50:07 AM PDT by ThreePuttinDude (o)...Ayatollah of GlennBeckistan... keep it going brother...(o)
[ Post Reply | Private Reply | To 1 | View Replies]

To: PureSolace
From the Obama Utopian Think Tank....

“Before we can create our Utopia we must continue to destroy America and it's wealth first.”

Next on the list the American Automobile.

26 posted on 08/01/2009 8:50:53 AM PDT by topfile
[ Post Reply | Private Reply | To 1 | View Replies]

To: ThreePuttinDude
1) People driving older cars, have lower insurance rates ....and most likely no monthly car payment.

As you noted, the whole Cash for Clunkers boondoggle is really a scheme to encourage consumers to get back in debt. No doubt the govt. and their friends in large banks are alarmed that many citizens have realized that paying thousands of dollars in interest to banks to have a new car is a bad idea.

For many consumers they'll end up paying some bank way more in interest than the $4500 they get from the government. And the return on investment from buying and financing a new car just to get slightly better mileage is negative for the consumer.

27 posted on 08/01/2009 8:59:49 AM PDT by freeandfreezing
[ Post Reply | Private Reply | To 25 | View Replies]

To: NoControllingLegalAuthority

Some people already got caught in the middle. Traded in their car and then the rules changed the next day. Dealer called them and said they needed the $4,500 they gave them or they couldn’t keep the car. I wondered if the dealer had already destroyed their car.


28 posted on 08/01/2009 9:02:16 AM PDT by autumnraine (You can't fix stupid, but you can vote it out!)
[ Post Reply | Private Reply | To 17 | View Replies]

To: combat_boots

Good point!!!

How many auto mechanics is this deal going to hurt?


29 posted on 08/01/2009 9:02:45 AM PDT by autumnraine (You can't fix stupid, but you can vote it out!)
[ Post Reply | Private Reply | To 14 | View Replies]

To: PureSolace

What is going to happen to NAPA auto parts because of this program?


30 posted on 08/01/2009 9:05:27 AM PDT by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: MeneMeneTekelUpharsin
My 9 passanger 1993 Caprice Classic Wagon is going to be on the road for a long long time.
Why would I trade in a Big American CAR that gets 22-24 mpg on the freeway while hauling 9 people or towing my sailboat.

O ne
B ig
A sre
M istake
A merica

Ebonics for stuck on Stupid

31 posted on 08/01/2009 9:16:23 AM PDT by troy McClure
[ Post Reply | Private Reply | To 30 | View Replies]

To: PureSolace

Not likely. The “cash for clunkers” program ran throught a billion dollars in an eye-blink. It’s pretty clear that this program is unsustainable. There will be quality used cars available. Could be that they will command a higher-than-normal price for a while.


32 posted on 08/01/2009 9:22:38 AM PDT by Tallguy ("The sh- t's chess, it ain't checkers!" -- Alonzo (Denzel Washington) in "Training Day")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Oldexpat
Actually it will drive up the prices of all cars..new or used.

Very temporarily.

You don't think they can keep this thing up forever, do you?

Plus, this being the government, a lot of the people who buy a car based on the cash for clunkers rebate are not going to get the rebate. It's already happening.

This is going to be the biggest government snafu ever perpetrated. Leno and Letterman will be joking about it for years.

33 posted on 08/01/2009 9:32:05 AM PDT by E. Pluribus Unum (Islam is a religion of peace, and Muslims reserve the right to kill anyone who says otherwise.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: PureSolace

http://www.collinsreport.net/2009/06/18/%e2%80%9ccash-for-clunkers%e2%80%9d-a-dangerous-scheme-that-will-help-few-people-but-destroy-america%e2%80%99s-charities/


34 posted on 08/01/2009 2:25:44 PM PDT by jmaroneps37 (Conservatism is truth. Liberalism is lies.)
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson