Posted on 08/14/2009 8:52:14 PM PDT by The Magical Mischief Tour
RICHMOND, Va. -- One man's clunker is another man's meal ticket. Mom and Pop used-car dealers are feeling the crunch as the old Caravans and Cherokees that provide their livelihood get traded in and banished to junkyards under Cash for Clunkers. By some estimates, three of every five of the used cars turned in for government rebates would have ended up on used car lots or resold for parts. While the Clunkers program helped push sales of new cars in July to the highest level in nearly a year, sales of used cars have taken a beating. "We're struggling and a lot of us small guys are going out of business," said James Dameron, sales and finance manager at Chase Motors in suburban Richmond, where sales are down about 30 percent.
(Excerpt) Read more at wsmv.com ...
And I hope to continue (God willing) in order to help you with that unemployment $$ for retraining. But hang on to those mechanic’s skills though, don’t kid yourself, that need will come again.
the 'zero % financing' wars were the real killer several yrs ago, you couldnt sell a $1k repair when they could now 'afford' a $50k suv...
You beat me to the punch.
This is why State run centrally planned economies are not nearly as smart as millions of free people acting in a free market.
The law of unintended consequences.
I’d also like to know that when many of these people who bought new cars with the cash for clunker program end up defaulting on their loans, where are they going to find a used car? At least one that will be inexpensive since this will no doubt drive the cost of used cars up.
Unintended? Perhaps. The 'hit will take time to be felt by the population, those are the vehicles and sources of parts which would have kept other vehicles like them going for a couple of decades.
The effect is that the poor will not be able to own those large, cheap to buy vehicles in the future, and will be forced to buy smaller vehicles instead. The pinch will come in higher used vehicle prices down the road, forcing those who can to use public transport, and those who don't have any in their area to move to urban environments where thewy are easier to control.
Larger, heavier, less fuel efficient vehicles tend to do better off of the pavement and on rural roads as well, especially in snow.
Today’s liberals simply cannot understand Bastiat’s broken-glass fallacy or Sumner’s forgotten man. Rather, today’s liberals break glass and forget about the poor working men and women who pay for their nonsense.
Look, basically every car that's being traded in through this "cash for clunkers" program either has life left in it, or it doesn't.
If it DOESN'T have life left in it, then the government (THE OBAMA ADMINISTRATION) is pissing away YOUR money for absolutely NO reason at all except to put cash into the new car companies while encouraging consumers to go into debt (since the purpose is supposed to be to help the environment).
If it DOES have life left in it, then the government is pissing away YOUR money to put cash into the hands of the new car companies, encourage people to go into debt, and make basic transportation almost unaffordable for the working poor, by destroying a car that they otherwise would have been able to use to meet the needs of their families.
You're right on this - I'm not sure why libs do this to the poor. It's odd.
Government's picking the winners and losers with an incentive plan that rewards the groups that work "with" them. In this case - the auto industry and unions.
In a credit crisis - Obama's people are encouraging citizens to borrow more money - assume debt they might not be able to afford - for a "great car deal" NOW. Now, because the deal's going away when the money runs out... Think "Government as snake oil salesman".
It doesn't seem to matter how many times central planning is tried - it just never works out as well as a free market system. Guess we'll get to learn that all over again with the health care fiasco.
Beat me to it.
Used-Car Dealers Left Without
First off the word 'Clunkers' for these used cars bugs me.
A car worth $4,500 may be a 'clunker' to the DC Beltway who gets driven around in Limos or big honkin' gubmint SUVs but not for normal people.
A couple years back I was surfing the net, FR musta been down :-) - and I found this local used car dealer on-line that had an 'older' Mercedes Benz 500S(?)Sedan for $5,000.00 This car had a CarFax report and was taken care of like a baby. Only had a couple minor rust spots and it could have used tires in a year - BUT - at $5K it was a steal. It would have been great for running around town or for running errands in styyyyyyle ;-)
Now it'd be junk. These people are morons
Not buying this. There are millions of “clunkers” not being traded in. Far more than what have been traded to date. It’s estimated that 750,000 have been traded to date and interest in the program seems to be waining from the initial surge. I’m taking these articles to mean that these used car salesmen and junk yard owners are going to use this as an excuse to soak prospective buyers.
Another opportunity cost: less jobs available because of the $3 billion taxed to pay for the program, poor folks can thank Democrats for their unemployed status
You're right - added to the list...
It's also doing nothing about someone driving a 10mpg beater who can't afford to buy a new car, even with a $4,500 discount.
LOL - great minds think in the same ruts...
The problem with well-meaning liberalism (I’m not talking about the super-libs or the more calculating socialist leadership) is that they always think only ONE step ahead, and never consider the “what if I do that” step... If that one step sounds compassionate, they look no further and are willing to feel good about what they have just done.
I would also like to that the working/taxpayers for my unemployment.
However it is so bad in Michigan, can’t even get to find out about retraining untill Sept. I was canned in June!!
Thanks a lot Barry.
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