What are the consequences of the Cash for Clunkers program?

That is right. No one ever mentions that part of things. Not only don't they get the "used car" resales... but what is the clunkers doing to our land fills? How much of that is actually recycled and how much is just dumped in some land fill somewhere. And those are my tax dollars that are paying for the $4500 per clunker... no one ever gave me $4500 to buy a new car.. now I and many others are paying for some to have a new car...I don't care for my tax dollars to be spent that way when there are roads out there that are deathe traps of pot holes and other critically needed repairs needed.. but lets just spend the tax dollars to put more cars on that road instead of fixing it up... at least first. The only thing they are saying this is helping is the envirnoment with the old clunkers off the road... okay fine.. but what about all the rest? Bad roads, more cars and full landfills... vs. less emmissions in the air. Guess they just go for whichever is in the lime light at the moment!

From a personal perspective, it stinks. I'll use my own car and situation for an example. Right now, I have no car payment and I spend about 80 bucks a month in gas. I paid $700 for my car and own it outright. Right now, I plan on running this car untill it costs me more to fix than I paid for it. Let's say I take part in this program. I go and find a place that is willing to finance me (lol, yeh, as if). Let's also say this place is willing to let me make payments as low as $200 a month, for a car that will cost me $65 a month in gas to drive. This boils down to net $185 a month I will now be paying to run a car, compaired to the 80 bucks a month I am paying right now....... where are the savings? In addition, if I turn in this car on this program, it gets destroyed. the dealer cannot fix it up and resell it to someone else as poor as I am, nor can it be "parted out" to fix other cars like it that people are still driving because they can't afford even a decent used one. Less affordable cars availble to the dirt poor, like myself.

I have gone through your post a very informative and to the point . I liked the way you have covered the topic.

I read this important point in the newspaper somewhere. They have the clunker for a reason. I'm not saying this is true in all cases, but it probably means they don't have the money for a new car in the first place. Not only will they have a monthly payment, but for a new car your insurance rates skyrockets rather than if you had an older, paid off car. But if they can't afford the monthly payments and insurances payments, what happens next? Not only does their car get repossessed but they are out their clunker. I wouldn't necessarily consider that a consequence for the overall economy or American population but for the person alone. Also I read this somewhere else too but I can't remember where. But people have the $4500 government rebate so they are going to try and get the most fuel efficient cars, and some even with hybrids if that's possible. But what happens when we all rush out to get those? There is a shortage of those models, and the people who can afford them, (not saying this in a mean or derogatory way) but we are taking it away from the people who have the money for these cars. I think in the end there are going to be shortages which means more money to create the cars BUT on the flip side it could mean more jobs in the car industry. Not only that but we may see alot of people riding their bicycles to work, and on the flip side of that less harmful fumes going into the atmosphere. So there is definitely a positive and negative it's not all consequences. But the consequences of these things also may work out for the better in my opinion