| The Cash For Clunkers program has come and gone | | | | until it began and then took advantage of the program |
| and the aftermath is just being felt. | | | | to get their share of the "FREE" tax dollars. They just |
| The Obama administration has called it a HUGE | | | | took their older clunkers in, got their allowed amount for |
| success, the car dealers who once thought it a good | | | | the trade and went merrily on their way. |
| deal for them, now wonder if they will get their money. | | | | Then there were the rest of the buyers. They were |
| The customer who traded their clunkers are now | | | | the ones that really had not planned on buying a new |
| starting to get their new payment books, and with a lot | | | | car but didn't want to pass up the "FREE" money. |
| of them now unemployed worry how they will pay for | | | | Some would have bought a car 6 months to a year |
| their once good deal. | | | | down the road but went ahead and took the plunge |
| So who really won with this attempt to try to try to | | | | while they could get their share. |
| stimulate the economy, with YOUR money? | | | | Like in any market there were those that couldn't |
| The Government says they are winners and are | | | | afford a new car and the payments that would follow, |
| patting themselves on the back for coming up with | | | | but thought if I can get financed why not drive a |
| such a great idea that got the New car business back | | | | newer, greener car? These are the people that in the |
| on track. It all looked good on paper and then when the | | | | months ahead it will hurt the most. They will face the |
| time came to make it work, just like everything the | | | | reality of a large payment that they didn't have, and |
| Government gets their hands on, they screwed it up. | | | | now can't afford. So they will lose their new ride and |
| First they told the American consumer they were | | | | damage their credit at the same time. |
| going to give away $3,000 to $4,500 for their old gas | | | | Just like the housing market, these people will be the |
| guzzling clunker, all they had to do was go get a New | | | | ones who lose. Some winners and some big losers in |
| car that would get at least 2 MPG more than their old | | | | the months to come. |
| one. No problem, like all good Americans they rushed | | | | Now my take. |
| out to get their $3,000-$4,500. After all it was free | | | | I have been in the Automotive business for over 40 |
| money, didn't they know it was their and your tax | | | | years and have seen quite a lot of good and bad in |
| dollars they were getting "FREE". You see the | | | | the industry, and every time the government gets |
| Government doesn't really have any money, it's really | | | | involved in anything, it is usually a disaster. |
| yours that you give them every payday to give away | | | | The "Cash For Clunkers" program is no different. This |
| anyway they see fit. | | | | program, to me, was a loser for all concerned from |
| So after 1 week they used up 1 Billion of your dollars, | | | | the start. I will give a few reasons that I feel it was a |
| so the administration said, "WOW"! Did we do good or | | | | loser. |
| what. Lets throw another 2 Billion dollars into this and | | | | 1. Any time you see something thrown together by the |
| make it twice as good". After about 3 weeks they | | | | Government, stand back and take a long look at it. |
| said they were out of money and they had fixed the | | | | Walk away from it for awhile then go back and look |
| Automotive market and it was time to close down and | | | | again. Most likely you will find some serious flaws in it, |
| move on. | | | | no matter what area they are trying to fix. |
| So the administration chalked it up as a big win for their | | | | 2. Where the dealers are concerned, they really should |
| side. Were they winners or wieners? YOU decide. | | | | have known better. But in the times we are in they |
| Okay, now how about the dealers When the car | | | | were just trying to make money and survive for a little |
| dealers first heard about the C.A.R.S. program, they | | | | longer. |
| thought this was going to be a big win for them. Here | | | | Now I'm afraid they are starting to feel the affects of |
| they were with a recession going on and very little | | | | what was done to them. They are not receiving their |
| traffic in their show rooms, so how could they lose? | | | | payments. They don't have a lot of inventory to |
| Everything started out just fine, they were selling cars | | | | choose from now. And they don't have any used cars |
| faster than they could ever imagine. Their service | | | | to sell as there are over 750,000 of those used cars |
| departments were busy disabling all those engines so | | | | either in the scrap yard or on their way there. |
| they would be nothing but a chunk of metal. Their | | | | Dealers are now advertising wanting to "buy" used |
| finance department and all their office staff were busy | | | | cars now due to not having many to sell. They will be |
| filling out the paperwork for the clunkers so they could | | | | laying off sales people, staff and service personnel |
| get their money back from the Government. How | | | | because their market has dried up for at least a year. |
| good could this program be? | | | | 3. How about that consumer? The consumer will be |
| Then after a couple weeks and many thousands of | | | | hurt in several different areas, with the new higher car |
| dollars due from the Government, reality set in. They | | | | payment, they will likely not be buying as much as they |
| were getting their paperwork returned stating it wasn't | | | | would have if the market had been left alone. There |
| filled out properly or some other problems on the | | | | won't be the extra money to buy those little extras |
| dealership's end. The payments would trickle in and | | | | that they would have bought, so other areas of the |
| more time was spent on paperwork trying to get their | | | | economy will be affected. |
| money. | | | | All those cars that were scrapped, older folks, college |
| After about two and a half weeks, dealers started | | | | kids or first time drivers could have bought and |
| dropping out of the program trying to cut their losses. | | | | stimulated the economy more than what little fuel or |
| Here they were with a lot of paper worth millions in | | | | green house gases they would use/omit. |
| some cases and all they had was "hope and | | | | Also the automotive service business and the |
| promises". Sound familiar? | | | | backyard mechanic will be affected because those |
| Now after over a month after the program ended the | | | | cars that were scrapped cannot be used for parts. So |
| dealers are still trying to get their money, the | | | | if you go to a salvage yard, different from a scrap |
| Government owes them around a billion and a half | | | | yard, you won't be able to find a good used part to fix |
| dollars. Were they winners? I guess they will decide. | | | | your (clunker?) car. And if you can find used parts look |
| Now how about the consumer? I guess you could say | | | | to pay 20%-30% more due to shortage. |
| they were they were the ones who came out the | | | | It is estimated that "The Cash For Clunker" program |
| better with this program. | | | | cost the tax payer $10,000+ per vehicle. So I'll let you |
| About half of them were already buyers that heard | | | | decide for yourself if "Cash For Clunkers" was a good |
| the program was going to start, so they just waited | | | | deal for all or not. |