Yep, another cash for clunkers thread.



Just like the housing market, when you make it easier for people to buy something with payments, you are gonna attract the lowest common denominator.



I just bought a vehicle. I traded in a vehicle that would have qualified for the CARS $3500. A 1999 Infiniti Q45, with 180,000 miles.



I paid cash for a 2007 Rav4 with 34k miles for $17,000. To me, it made more since than buying a 2009 for $27,000.
Cash for clunkers will be another Obama/Dem failure, but it will be blamed somehow on the failed policies of the last administration.....

Used cars with destroyed engine's ?

BTW, those cars are to be crushed and chopped up and sent to CHINA for metal recycling.

What a scam.

There is a sorta/kinda funny part of this crap. Destroying the 'clunkers' lessens the supply of used cars, therefore, driving up the price of cars most often purchased by barry obama's low income constituency.



Seems to me the clunker deal is just another payment to the UAW.
5sub

Yepper..........thousands of abused repos that have been "ghetto'd " and turned into hoopties .....coming soon to a used car dealer near you.

Just wait until these people lose their jobs or default on the loans for the new cars. No car, more debt (that probably won't be paid), and the trade in will be a hunk of scrap metal.

What are the odds that this becomes a permanent program?  Once it stops, sales will plunge and the UAW won't be happy.

There's going to be a bunch of late model cars up for sale in a year or two when people get tired of making the payments.

 

No, repossesd cars from all the people who went out and bought new cars they couldn't afford because they got a 'deal' and then went and defaulted.  Kinda like the mortgage crisis........




-K

I think he means they'll be a flood of 1 year old cars people bought because the program gave them a "wicked deal" they still can't afford. Problem is chances are the people were driving clunkers to begin with because they couldn't afford anything better.

I'm with him, I bet next year Craigslist will be crowded with 6 month to 1 year old car ads titled "Take over payments"

I suspect the recession will be over for repo men.

I think if any business is thriving now, its the repo business.

A Repoman's life is always intense.

I actually don't see this one happening.  I read an article that said the people taking advantage of the program and financing their vehicles had higher than average credit scores.  Most would have purchased a new car anyway in the next year or so, so the program just encouraged them to make that purchase a bit sooner than they'd planned.

Once the artificial spike in demand created by the CFC program ends, the car dealers are really going to be hating life.

The value of OEM parts just hit the floor & crashed into the basement.

No high mile repairable cars to need parts from the warehouse....no value in the parts.

UAW bribe payments and social engineering.Brought to you by the fine folks who believe in gun buybacks.

of course it is

This.
Although I think the OP is talking about the 'new cars' people buy with the aid of CFC. They won't be able to pay for them and then they'll end up on the market?

However, Ryderhard is right. The 'clunkers' are destroyed on condition of receiving the federal money.
So in many ways, buying a used car will be harder.

Was not aware of the CHINA aspect, but I'm not surprised. China has us by our balls.

My fed withholding for last month was $4400. I subsidized one of these bastard's new cars.

The dealers are really going to be pissed when they are not reimbursed but given a stimulus credit.

Oh the ARFCOM drama.  Cash for Clunkers is not going to make the supply of old, used cars disappear.  People driving a $1000 1986 Impala don't necessarily have the money or credit to qualify for the new car.  

$3,000,0000/$4500 = 666,666 cars bought back, assuming all of the money is used directly for the buy back.  

the repo man hasn't been in recession for years now.

+1

My BIL has more business than he knows what to do with...

Obama didn't even invent this plan. He copied it straight from Germany. Almost every Euro country has a similar scheme.

So. It will still be Bush's fault.



 

I agree. As tight as credit is, the car companies are selling to people who were or would be in the market anyway. They're borrowing future sales.

My initial thought...clunker wit $50 insurance rate jumps to $250, no payment then all of a sudden $400 is due every month. I detect fail.

I bet we get a flood of people not able to pay for their new car

Can anyone here at ARFCOM guess which financial institution along with .gov is handling the CASH FOR CLUNKERS program

ANYONE...

It's pretty easy I promise

It's one of my most favorite corrupt institutions in AMERIKA...

At $1 billion, the number of vehicle sales funded would be ~285,714 if everyone got a $3500 credit and ~222,222 of everyone got a $4500 credit - so lets just call it an even 250,000 deals. At $3 billion, that would be ~750,000 deals. Considering that automakers sold 856,670 vehicles in June 2009, this program isn't funding all that many vehicle sales.

I think he means all the cars that are being purchased now. The owners will be defaulting on the loans in about a year and the repossessions will be flooding the market soon.

you and your fancy schmancy mathematics....

That too.



From Texas? All bold print?



I guessing Mark LaRue troll account.








 

My long term goals were slightly adjusted when this program was implemented.



There's going to be plenty of very "newish" cars on the market in a couple years.

What is "Goldman Sachs", Alex.

They may indeed be headed there,

but not so long ago I was hearing plenty about yards filling up because China wasn't buying recyclables much at all anymore.

I guess the state of things in China is rather fucked too.



Maybe that doesn't go for steel...

the answer is probably apparent in scrap pricing over the last few years to current.

If anyone has some pricing info and could post it,  I'd be curious.



 

Someone said this is only a million vehicles, but look at where those vehicles are coming from.

This is not the serious clunker that someone can barely afford to keep on the road, those will remove themselves from the road in short order all by themselves.

This is a million vehicles owned by people who would either sell them to folks who would have them repaired or repair them themselves.  That means a lot of local garages and parts stores are going to see a decent drop in cars coming in for repairs and parts being sold.

I consider this to be way more than a uaw payoff.  The payoff is included but I think there are two other ways some folks want this road to be laid down.

One way is just to spread out the distance between have and have nots.  These million vehicles are what a lot of folks would buy and use for another 50k to 100k so that they could avoid the high cost of new vehicles.  This is not just for financially savvy folks, it is also for folks who can't afford any more vehicle costs but need a vehicle for personal work or whatever.

Removing these vehicles from the market will affect the cost of similar vehicles not removed from the market.  I despise market meddling but taking this many well used but not worn out vehicles off the market is going to do some interesting things for used car prices.

And the other group is the one that thinks we should all live close to where we work and use public transportation because a personal vehicle should be a very expensive item that only the rich can afford.  My concern with this direction is that some folks might think a federal version of section 8 car payments like maine offers is a good idea.

I personally am wondering what some core charges are going to change to with a lot of vehicles being scrapped out as well.

While folks keep telling me this is only a few hundred thousand to maybe a million vehicles I just want to point out that we normally have X number of vehicles removed from the road because of normal accidents and what not.  And this is a lot of vehicles on top of that normal number.

Expect car insurance to come under federal scrutiny when people complain about all their car payments as well because vehicles with loans need full coverage car insurance.

This is just a symptom to the disease.  It is not just a uaw payoff, there are a lot of groups who will use the ripples this rock in the lake is making to push their bad ideas.

And in the end it always boils down to how some animals are more equal than others.

That's my whole line of thinking, no way they used 1 billion dollars in 5 days on that sort of thing.



Went into some scumbags pocket somewhere along the line.

They approved more today....




 

A lot o' people don't realize what's really going on. They view life as a bunch o' unconnected incidents 'n things. They don't realize that there's this, like, lattice o' coincidence that lays on top o' everything. Give you an example; show you what I mean: suppose you're thinkin' about a plate o' shrimp. Suddenly someone'll say, like, plate, or shrimp, or plate o' shrimp out of the blue, no explanation. No point in lookin' for one, either. It's all part of a cosmic unconciousness.

NOPE,

But you are close...  Hot close...

What bank ryhmes with Shitty...