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Old 12-18-2009, 04:53 PM
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The Scam



Ignore all the gas crap and just look at how the stupid car buyer got taken to the cleaners:

If you traded in a clunker worth $3500, you got $4500 off for an apparent "savings" of $1000.

However, you have to pay taxes on the $4500 come April 15th (something that no auto dealer will tell you).

If you are in the 30% tax bracket, you will pay $1350 on that $4500.

So, rather than save $1000, you actually pay an extra $350 to the feds.

In addition, you traded in a car that was most likely paid for.

Now you have 4 or 5 years of payments on a car that you did not need,

that was costing you less to run than the payments that you will now be making.

But wait, it gets even better. You also got ripped off by the dealer.

For example, every Ford dealer was selling the Ford Focus including A/C, auto transmission, power windows,

for $12,500 before the "Cash For Clunkers" program started.

When "Cash For Clunkers" came along, they stopped discounting them and instead sold them at the list price of $15,500. So, you paid $3000 more than you would have the month before.

(Honda, Toyota, and Kia played the same list price game that Ford and Chevy did).

So let's do the final tally here:

You traded in a car worth: $3500
You got a discount of: $4500
---------
Net so far +$1000
But you have to pay: $1350 in taxes on the $4500
--------
Net so far: -$350
And you paid: $3000 more than the car was selling for the month before
----------
Net -$3350

We could also add in the additional taxes (sales tax, state tax, etc.) on the extra $3000 that you paid for the car, along with the 5 years of interest on the car loan, but let's just stop here.

So who actually made out on the deal? The feds collected taxes on the car along with taxes on the $4500 they "gave" you. The car dealers made an extra $3000 or more on every car they sold along with the kickbacks from the manufacturers and the loan companies. The manufacturers got to dump lots of cars they could not give away the month before. And the poor, stupid consumer got saddled with even more debt that they cannot afford.

Obama and his band of merry men convinced Joe consumer that he was getting $4500 in "free" money from the "government" when in fact, Joe was giving away his $3500 car and paying an additional $3350 for the privilege.

Think this was stupid?


Just wait until we get health care with "no additional costs" over what most of us now pay for health insurance and the best medical care in the world. Think the new scheme might be designed by the same people who came up with Cash for Clunkers?
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Old 12-18-2009, 04:56 PM
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sad but so very true
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Old 12-18-2009, 04:57 PM
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If it sounds to good to be true it probably is.
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Old 12-18-2009, 04:57 PM
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Excellent Sir, Excellent.
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Old 12-18-2009, 04:59 PM
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Quote:
Originally Posted by choctaw View Post
Excellent Sir, Excellent.
I actually got that in an email from Shannon. I guess she really is learning.

Last edited by westcoaststrokin; 12-18-2009 at 08:08 PM.
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Old 12-18-2009, 05:06 PM
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And now the dealers are waiting for the money from the government.


Anybody want to guess that the one's that supported Obama get their money and the one's that didn't won't get paid?
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Old 12-19-2009, 03:53 AM
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AND...

this cash for clunkers program wiped out used cars available to private used car dealers. the auctions are empty! SO...

the consumer, who wants to do the right thing and buy a cheap car they can afford, cannot because they're all junked.

cash for clunkers:
-temporarily killed the used car business
-forces ppl to spend more than they can afford for transportation

great plan!
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Old 12-19-2009, 05:05 AM
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Quote:
Originally Posted by daveyburt View Post
AND...

this cash for clunkers program wiped out used cars available to private used car dealers. the auctions are empty! SO...

the consumer, who wants to do the right thing and buy a cheap car they can afford, cannot because they're all junked.

cash for clunkers:
-temporarily killed the used car business
-forces ppl to spend more than they can afford for transportation

great plan!

The auto transport business has gone in the crapper also.
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  #9  
Old 12-21-2009, 06:04 AM
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Some people are just to stupid to understand common sense economics
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  #10  
Old 12-21-2009, 10:53 AM
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A few local dealers are still waiting for their money from the government. Interestingly the GM dealer got theirs quite quickly.
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