WHat are you going to do to benefit from the "Cash for Clunkers" program

[gogriz91]

Why would you assume that? Perhaps like me - their clunker was paid for years ago - and ever since they saved their money monthly... I'll bet that of the new cars sold with the CLUNKER program a huge percentage of the customer paid cash for the difference - or had such good credit they could put it on their VISA. Like I said - at least around here - you have to have A+++ credit ratings to get a loan on anything - this isn't the same market we had a couple years ago...

With Manufacturers Discounts, and the CARS credit - most of the vehicles sold cost around 20K to start with - and the actual difference was between $10K and $15k {I'm guessing}... not exactly like financing a new car for $30K over seven years.

Even then - "IF" you have the credit rating -"0%" financing on a $15K loan - is still very affordable for people that have good credit to begin with..

FWIW

Carl B.

You'd be the exception rather than the rule. While it is likely some percentage of individuals paid the difference in cash I would be surprised if they were a majority of buyers under C4C. Statistically Americans haven't saved much money in the last 30 years and they've gone into debt at a greater ratio than they've saved to boot. I can't imagine what the payout would be on a loan floated on a credit card either, the worst kind of legal debt imaginable. All the $4500 does is absorb the depreciation on the car when it gets driven off the lot, the majority of buyers will still end up with a car payment as well as the difference in insurance, hopefully the fuel economy will cover some of it. This was as much another $3 billion in TARP to lending institutions as it was an effort to get folks into debt to drive a Hybrid like the Goron does.

[sblake01]

IMO the C4C program isn't for people who have money and 850 credit scores. Why would someone in that catagory need that kind of help for the government? They likely got there by not looking for 'help' or any kind of bailout from the govt.

[26th-Z]

There is an internet warning circulating about cars.gov http://www.youtube.com/watch?v=mqfuZ7hiap0

Sand is not what is put in the engines to disable them. Soduim silicate in solution is used. Glass, not sand, Carl.

So, you go down to your dealer, buy a car that is priced at full retail, take the bailout rebate, and drive the car off the lot to the depreciation tune of $4,500. Very smart.

[TomoHawk]

I won't need any C4C business, as I won't be needing a new car for another 5-10 years (it's a '97 Ford Escort.) I'm not the kind of person who buys a car because they "need a new car" or because it gives you status or anything. I'm still getting 30+ MPG too! :laugh: The odometer will be past the Z by then, probably.

thxZ

[Carl Beck]

Sand is not what is put in the engines to disable them. Soduim silicate in solution is used. Glass, not sand, Carl.

Carl??? Carl didn't say anything about Sand....da...

So, you go down to your dealer, buy a car that is priced at full retail, take the bailout rebate, and drive the car off the lot to the depreciation tune of $4,500. Very smart.

Granted there are alternatives - one could continue to drive an old BMW and pour $4,500.00 into maintaining it over the coming years. Either way it costs money to drive.. Mary's new car has a 10 year / 100,000 mile power train warranty, in addition to the 5 year/ 60,000 mile new car warranty... So she should be good to go for a while...

All said and done - one couldn't buy a serviceable used car for the total price of the new one.

[sblake01]

I'm the one that said something like 'having the engine sanded'. Whatever they use, it renders the engine useless.

[26th-Z]

Oh yea, my bad, it wasn't you who said they ran sand through the engine. Of course one could spend money on an old BMW or, on the other hand, one could enjoy the luxury, dependabilty, economy, and pristine quality BMW has to offer.

I read a blurb about the business that supplies the sodium silicate. They're making a fortune from this program from what I read. The solution turns to glass under the heat of running the engine and glazes the entire inside of the engine blocking the oil passages and seizing the bearings. The result cannot be reversed.

Edited August 13, 2009 by 26th-Z

[Carl Beck]

IMO the C4C program isn't for people who have money and 850 credit scores.

Well that's true. It's for people like me that have an old clunker sitting in the driveway - being used once or twice a year. An eyesore that the wife and neighbors were glad to see goneLOL

The C4C Program is actually for New Car Dealers, and to aid in proping up the Government Motors Corporation for the UAW. The politicians were simply smart enough to make use of one or two of their groups of "usefull fools" {Gore's Folks etc}... to paint it Green and push it through in a hurry. Business as usual in D.C.

Why would someone in that catagory need that kind of help for the government? They likely got there by not looking for 'help' or any kind of bailout from the govt.

Over your lifetime the single most expensive thing you pay for is the cost of Government. According to some reasonable sources that amounts to about 54% of your lifetime earning.

One way to "save" some of your own money - is to take advantage of any "tax incentive" written into the Federal Laws. Most people buy a home - not only becaues they need it - but because the interest on the long term loan is tax deductible. Likewise today millions of people are taking advantage of the tax deduction in the thousands of dollars - to install new energy efficient A/C units, insulate their homes etc.

From the customers perspective - the C4C program is simply another tax incentive - although one that was exceptionally easy to claim and comply with. As long as my wife is still working - she or I have to earn $7,031.25 in order to keep or spend $4,500.00 after taxes. {the value of my C4C}. With a tax incentive like that - we'd be stupid not to take advantage of it. C4C credit is NOT INCOME to the customer either.. which makes it even more valuable.

I wanted something a bit newer than my 72 510 S/W for my Daughter to drive {not sure I would give it to her anyway} - My wife didn't want to give her 91 Thunderbird SC with 9K miles on it - to my Daughter... So that left me looking at a clean, low mileage used car... which takes about $12k to $15K even in todays market. C4C was a glove fit for me.. Daughter gets a car I don't have to fix, I get a good rational for upgrading my pickup from an 88 Chevy to maybe a 2000 Chevy... which I didn't really "need" as long as the clunker was sitting there..

FWIW,

Carl B.

Edited August 13, 2009 by Carl Beck

[sblake01]

I read a blurb about the business that supplies the sodium silicate. They're making a fortune from this program from what I read.

And it's not like they had to come up with a new product. This stuff has been in use for years and years for fire protection, as a general purpose cement/adhesive, concrete/masonary treatment, food preservation, metal repair, etc.

[Carl Beck]

Only now all the kids know exactly what to put in your gas tank or oil sump - instead of "sugar".

[jmortensen]

Oh yea, my bad, it wasn't you who said they ran sand through the engine. Of course one could spend money on an old BMW or, on the other hand, one could enjoy the luxury, dependabilty, economy, and pristine quality BMW has to offer.

I read a blurb about the business that supplies the sodium silicate. They're making a fortune from this program from what I read. The solution turns to glass under the heat of running the engine and glazes the entire inside of the engine blocking the oil passages and seizing the bearings. The result cannot be reversed.

Sodium silicate, sand, whatever it's degrees of accuracy here, and I tend to simplify things. What's the main ingredient in glass? Quartz sand. Is all sand capable of making glass? No. Is sand used to make glass? Yes. The point was not that they're using sand, the point was that they're destroying a huge resource of running engines for people who might be able to use them. I just bought an engine from a junkyard a couple months ago for my Z. I wonder how many engines just like mine are having sodium silicate run through them. I remained convinced that they are purposely destroying thousands of running engines that are capable of doing productive work for no good reason.

FWIW, I also recently confused my neighbor by telling him RoundUp weed killer is "salt". I don't put it on my breakfast in the morning, but when you get down to what it actually is, it's salt. He looked at me like I was crazy and changed the subject, and I didn't force the issue and show him that it is in fact salt, but it is.

[hogie]

I was planning on trading in my high mileage wrecked pathfinder on a new escape or tribute, but all the regional dealerships are sold out. We are also interested in a RAV4, but the local toyota dealership is a choad and will not budge off of MSRP.

I am not sure what the huge deal about wasting the engines....who really wants some crap v6's from ford explorers and minivans? I know a handful of older supras have wound up trashed, but really the oddball semi valuable stuff isn't going to be traded in by the thousands