CARS, cash for clunkers....what do you think?

I'll use my own car and situation for an example first and then I will go in to a long term more wide spread consiquence of this program. 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. 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. This program will also in effect be creating another bubble, we'll call it the "car bubble". What we are now seeing hand in hand with this kash for klunkers program, is dealers offering extra incentives for buyers, expanding fincancing options and extending credit to more. We can expect to see something similar to what we saw in the housing market. It may not have nearly the impact the housing bubble's burt did, but it will be noticed and have a ripple effect both in the auto industry and in the economy in general.

I actually think it is a good plan.Also i read and saw on the news that when i dealer signs up for the program that their computer becomes a federal computer and the goverment has right to acess their computer and do whatever they want to it

It is quite a brave initiative taken by the government, which is only taken in the best interests of all the citizens belonging to the USofA. It is definitely going to decrease the amount of emissions that most of the fuel guzzlers make and as a result of this the environment will also be saved from the daily blemishes that it has face thro' these monstrous cars. CARS is an excellent option for those people who have always been wanting to go green and for those who do have some heart in them and can contribute towards the environment.

I think that this program is a waste. Not only is it encouraging people who most likely are not making any money to try to buy a car but it destroys the engine of perfectly good vehicles. Last year at this time in the area I live in people were making a crazy amount of money in the oil field. That stopped in January, and yet the car dealerships are still bringing in good money. How? There are no decent paying jobs around here right now. People are trading in what they have, that works to have new but I do not doubt that most of them are paying for it with their unemployment checks. People are not thinking about the 5 years of payments they will have to make to pay off that new car. On the other hand, there are people, like myself and my husband who only have 2 years left on the new car payment and also have a vehicle that while might qualify to be a clunker, for less money than we could get by taking it to a dealership we could improver the emmisions and fuel milage. I think that the government should have gave the money to mechanics who legitamatly increased fuel milage on people's cars. Throw a set of headers, new tires, and a tune up on most older vehicles and not only will you get better performance but also have in most cases, employed a person and reduce emmisions. I do not plan to part with my older vehicles, I just wish that the government would stop destroying good parts.

I agree quite a bit with you on t his matter, taface412. I know a lot of people who have cars that have been manufactured in the last 5 years, but their mileage has forced the warranties to expire. They can't afford payments for new cars, but their current ones need repairs that make driving them unsafe if not impossible... and they can't afford to have them done, but the price of the repairs would be faaaar less than the "cash rebate". My parents are in the situation of owning several older vehicles that could've qualified and one that is only 3 years old but off road in need of repair. The repairs needed came to $800 - it would've been nice if those who really were in need could have qualified for this program... Instead, it seems it was simply done solely to appease the auto industry. There are many, many things that the auto industry could do to save money and stimulate sales. So many vehicles that are actually still driveable are going to be scooped off to junk yards - why not scrap out useable parts for the lower income people, or offer these vehicles at extremly discounted rates. I'm handicapped and live in an area where public transportation isn't available - I'd be happy to have a car with poor gas mileage to get around to the grocery stores and such. Instead, I have pay a neighbor $5 a trip, even if it's just to the store 300 feet up the road.

You are right it sound good but at the same time it those say that we have to make payments for?? time. I have a old car that I bought in April and I don’t know if I qualify for that program and I would love to be able to qualify but at the same time I don’t know if I can have a new car because I don’t always have the money. There are months were I don’t even have the money to pay my bills so I don’t think or know if that would be a good thing for me. Also I have bad credit so that won’t help at all.

First of all, I believe in something called personal responsibility so I don't agree with the suggestion that this program causes people to buy something they can't afford. It should be up to the individual to decide what he/she can afford...not the car dealers or the government. Folks also have to be able to qualify for financing so you're not going to find someone earning minimum wage driving a new Corvette off the lot. Having said that, I think this program has accomplished a couple of things. It has taken some vehicles off the road, it has given the auto industry a much needed shot in the arm and I'm sure it has lifted the moods of the many Americans who have participated. There's nothing like that new car smell! Personally, my husband and I haven't taken part in the program because our two trucks are almost paid off and we'd rather not enter into a new loan obligation at this time.