WASHINGTON — The Cash for Clunkers buzz is starting to wear off and it seems that some buyers are having serious second thoughts about getting on that government-funded bandwagon, according to a new survey. In the meantime, the U.S. Department of Transportation said that dealers by Tuesday's deadline had submitted a final total of 690,114 Cash for Clunkers deals for $2.88 billion in rebates.
The total is just under the revised $3-billion budget for the four-week program.
The new survey by CNW Purchase Path, of Bandon, Oregon, finds that of nearly 1,000 Cash for Clunkers participants, 17 percent say they have some or serious doubts that they should have made the new-vehicle acquisition.
"Primary reason: They are now facing a $275-$350-per-month car payment that didn't exist prior to acquiring the car or truck," said the report. "That amount, they say, could negatively impact the total family budget more than expected prior to buying the new vehicle."
In contrast, buyers' remorse hits about 6-8 percent of new-vehicle buyers within a month, said CNW Purchase Path.
Inside Line says: You might not feel so good after you remove that Cash for Clunkers party hat. — Anita Lienert, Correspondent
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Now, they can trade in the new car for a clunker for a 4500$ loss. Double taxation goverment and the car makers win.Tax payers and the buyers with buyer's remorse lose
statistically i'd guess that most of the people who drove a qualifying clunker can not afford a decent enough of a car to have any resale when they have been repo'd.
You think jim-bob is going to afford to service the car like his beater which he drove the wheels off before trading in? Nah. no need to change the oil just drive it till they repo it.
"Primary reason: They are now facing a $275-$350-per-month car payment that didn't exist prior to acquiring the car or truck," said the report. "That amount, they say, could negatively impact the total family budget more than expected prior to buying the new vehicle."
The above snippet implies that the buyers were clueless and didn't understand that a monthly payment is... er, a monthly payment.
So the net effects of Cash for Clunkers were:
1. Drive up the deficit. 2. Give a stimulus to the carmakers in Japan. Oh, yeah, and some in the US. 3. Help people who cannot budget buy cars they cannot afford. 4. Trash the environment by converting usable cars into metal scrap.
Any intelligent person could have seen this problem coming from a mile away. We're in our current economic mess because Americans in general have been spending more than they make for years now, so the obvious solution is to attempt to get people to spend more rather than allow the market to correct itself and put at least a temporary end to the absurd spending.
What gets me about the Cash for Clunkers program is that is effectively a tax carried by the poorest in this country. Families that try to get a $500 or $1000 car now have to look for a decreasing commodity. Less supply, presumably means higher prices. Whenever you decrease a commodity, you have to at least wonder who depends on that commodity. This burns my butt. Congress, you fail.
catanpirate said:What gets me about the Cash for Clunkers program is that is effectively a tax carried by the poorest in this country. Families that try to get a $500 or $1000 car now have to look for a decreasing commodity. Less supply, presumably means higher prices. Whenever you decrease a commodity, you have to at least wonder who depends on that commodity. This burns my butt. Congress, you fail.
How can you hate the Polar Bears so much!? Dont you understand they would drown if we dont stop global warming now! Look at the Polar Bears having to swim to find fish!
EvilCapitalist said:catanpirate said:What gets me about the Cash for Clunkers program is that is effectively a tax carried by the poorest in this country. Families that try to get a $500 or $1000 car now have to look for a decreasing commodity. Less supply, presumably means higher prices. Whenever you decrease a commodity, you have to at least wonder who depends on that commodity. This burns my butt. Congress, you fail.
How can you hate the Polar Bears so much!? Dont you understand they would drown if we dont stop global warming now! Look at the Polar Bears having to swim to find fish!
dupontcobb said: "Primary reason: They are now facing a $275-$350-per-month car payment that didn't exist prior to acquiring the car or truck," said the report. "That amount, they say, could negatively impact the total family budget more than expected prior to buying the new vehicle."
Duh..... The fool and his money shall part. Nothing will prevent this.
People, please. I think you're all missing the point.
dupontcobb said:In the meantime, the U.S. Department of Transportation said that dealers by Tuesday's deadline had submitted a final total of 690,114 Cash for Clunkers deals for $2.88 billion in rebates.
The total is just under the revised $3-billion budget for the four-week program. Congress came in under budget on something! When was the last time you heard that happen?
WalStMonky said:Oh, please, they did not use your money for this. They used your great great grand children's money, so there's nothing to 'get back'. Exactly. Your money was all spent up at some point in the 80s. We burned through your kids' and your grandkids' money in the 90s. If only we could find a 0% BT card with an $11 trillion limit.
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