"Cash for Clunkers" Smart??????????
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"Cash for Clunkers" Smart??????????

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    Red Blooded American The Doctor's Avatar
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    Default "Cash for Clunkers" Smart??????????

    Government Intelligence once again the top Oxymoron.

    Cash for Clunkers...

    Let's look at this from a simple view of logic:
    * A vehicle at 15 mpg and 12,000 miles per year uses 800 gallons a year of gasoline.

    * A vehicle at 25 mpg and 12,000 miles per year uses 480 gallons a year.

    * So, the average clunker transaction will reduce US gasoline consumption by 320 gallons per year.

    * They claim 700,000 vehicles - so that's 224 million gallons /year.

    * That equates to a bit over 5 million barrels of oil.

    * 5 million barrels of oil is about ¼ of one day's US consumption.

    * And, 5 million barrels of oil costs about $350 million dollars at $75/bbl.

    So, we all contributed to spending $3 billion to save $350 million. How good a deal was that???

    What's that, you say? It boosted auto sales? Yeah for one month (akin to the difference in feeding a man a fish and teaching him to fish) and the sad truth is that there are now hundreds of thousands of big car loans out there, where unemployment continues to rise, where there were previously a bunch of paid off cars being utilized before. These clowns can economically pedal back-wards faster than any administration in history. How sad.

    Don't even get me started on the many values of starting off with a used vehicle like everyone in my entire family history did.
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    Senior Member Ms Understood's Avatar
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    Two other disappointing facts on that program... The top cars traded in to be crushed were American cars. The foreign cars were the number one replacement vehichles. ( a subsidy to Japan )

    The 3-4k car is removed from inventory and is hurting the used car businesses along with driving up the cost of the used car market.



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    E-7 Sheepdog (ret) SmokinLowriderSS's Avatar
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    Hey now, there was an increase in consumer spending last month (a sign of the recession easing up).

    'Course, that increase appears to be SOLELY due to Cash 4 Clunkers.
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    The biggest fallacy is the carbon foot print. It takes a massive carbon foot print to build a brand new car. I ten year old car that has 100000 miles on it has no carbon footprint. You could spend a very small amount of money to put that car on the road and in the long run wind up with a much more ecologically friendly footprint.

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    Senior Member brgrcru's Avatar
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    Just wait. Next year all those cars that were bought will be taken back. By the banks. No worky, no money. And when will the dealers get there money? Great plan again. A clunker with no payments or a new POS car with. Hmm. I will take the no payment plan please.

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    I wonder how much fuel it takes to scrap those 700K cars.

    Am guessing that by years end a huge number of those new vehicles will be repoed.
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    Senior Member havasu5150's Avatar
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    another little known aspect of the cash for clunkers program. The 4500 bucks is .....taxable income and the recipiants will be 1099'd for that amount at the end of the year. Plus typically on a trade in ....if you were buying a 20k car and they gave you 4K for the trade in you would pay sales tax on the net amount of 16k. w/ c4c....the dealers aren't taking a trade in perse....so you pay sales tax on the whole 20k.

    not quite as appealing now.

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    Colts fan & Stoker owner RitcheyRch's Avatar
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    Wow, didnt know that. Definitely not appealing in my book.

    Quote Originally Posted by havasu5150 View Post
    another little known aspect of the cash for clunkers program. The 4500 bucks is .....taxable income and the recipiants will be 1099'd for that amount at the end of the year. Plus typically on a trade in ....if you were buying a 20k car and they gave you 4K for the trade in you would pay sales tax on the net amount of 16k. w/ c4c....the dealers aren't taking a trade in perse....so you pay sales tax on the whole 20k.

    not quite as appealing now.
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    Senior Member Ms Understood's Avatar
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    Quote Originally Posted by havasu5150 View Post
    another little known aspect of the cash for clunkers program. The 4500 bucks is .....taxable income and the recipiants will be 1099'd for that amount at the end of the year. Plus typically on a trade in ....if you were buying a 20k car and they gave you 4K for the trade in you would pay sales tax on the net amount of 16k. w/ c4c....the dealers aren't taking a trade in perse....so you pay sales tax on the whole 20k.

    not quite as appealing now.
    In California you do not get credit from your trade in. You pay sales tax on the purchase price of the vehichle you are buying. Many other states however do deduct the trade in value from the price considering tax was paid when it was purchased.
    Good old Cali will tax over and over and over on the same thing.



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    Been here a while BigBoyBlue's Avatar
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    Quote Originally Posted by The Doctor View Post
    Government Intelligence once again the top Oxymoron.

    Cash for Clunkers...

    Let's look at this from a simple view of logic:
    * A vehicle at 15 mpg and 12,000 miles per year uses 800 gallons a year of gasoline.

    * A vehicle at 25 mpg and 12,000 miles per year uses 480 gallons a year.

    * So, the average clunker transaction will reduce US gasoline consumption by 320 gallons per year.

    * They claim 700,000 vehicles - so that's 224 million gallons /year.

    * That equates to a bit over 5 million barrels of oil.

    * 5 million barrels of oil is about ¼ of one day's US consumption.

    * And, 5 million barrels of oil costs about $350 million dollars at $75/bbl.

    So, we all contributed to spending $3 billion to save $350 million. How good a deal was that???

    What's that, you say? It boosted auto sales? Yeah for one month (akin to the difference in feeding a man a fish and teaching him to fish) and the sad truth is that there are now hundreds of thousands of big car loans out there, where unemployment continues to rise, where there were previously a bunch of paid off cars being utilized before. These clowns can economically pedal back-wards faster than any administration in history. How sad.

    Don't even get me started on the many values of starting off with a used vehicle like everyone in my entire family history did.
    edit..

    nevermind.
    What the f*ck Guss.

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    Senior Member NiceGuyEddie's Avatar
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    Quote Originally Posted by Ms Understood View Post
    In California you do not get credit from your trade in. You pay sales tax on the purchase price of the vehichle you are buying. Many other states however do deduct the trade in value from the price considering tax was paid when it was purchased.
    Good old Cali will tax over and over and over on the same thing.

    Yep pretty shiiity. The cash for clunkers $4,500 is a fed tax. So everyone who bought into the program will get hit with the tax. IMO, serves people right for taking advantage of our stupid government spending.

    I will bet that most of the dealers selling cars and parctipating in CFC didn't know this either. And who's phone do you think will be ringing off the hook come next Feb when people start filing. Yes the dealers!

    Cash for clunkers isn't the only program that ended up costing double. The 1st time home buyer tax credit also ended up costing double! Team Obama shouldve left it alone when it was still the $7,500 interest free money that you pay back.

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