Car Blog » Buying A Car

Cash for Clunkers Helps Who?

kevin — Tue, 01 Sep 2009 19:49:58 +0000

A recent news story reveals the true story of the cash for clunkers program.

While the headline reads Auto Industry Posts Best US Sales of Year and the cash for clunkers program is attributed to the boost, as always, the devil is in the details…

Fords Sales were up 17%

GM was down 20%

and Chrysler was down 15%

Hyundai and most Japanese Car Makers (except Nissan) we also reporting growth in sales.

So where did the cash for clunkers money go? It appears it went to Ford and Imports.

Why isnt the headline Obama fails to capitalize on Cash For Clunkers Program since its clear that GM did not gain from the program?

Are people turning away from GM since they are now government run?

All questions I would like to hear your opinion on.

Kevin

Cash For Clunkers Ending Again ?

kevin — Fri, 21 Aug 2009 18:09:09 +0000

Its been reported that on Monday August 24th the cash for clunkers program will end. Seems they have succeeded in giving out almost $3 Billion in rebates. Now if only the dealers could get their money!

If you are in the market for a new car, and you have a clunker, this is the weekend to act on this free money. Just remember to thank your neighbor for it ! (it is tax payer funded)

Kevin

Cash For Clunkers Ending?

kevin — Thu, 30 Jul 2009 23:36:40 +0000

Seems like the cash for clunkers program may be ending earlier than many had thought. Many dealers have been having problems getting paid, and there have been stories of people not qualifying after being told they qualified due to changes in EPA mileage ratings. I guess it only stands to reason that a program which takes over 100+ pages to explain would run into a few issues .

Full Story… http://www.breitbart.com/article.php?id=D99P2U9G1&show_article=1

New Clunker Program, a Good Idea?

kevin — Tue, 28 Jul 2009 20:30:20 +0000

As many of you may know, there is a new program out there which will allow you to receive up to $4500 from good ole Uncle Sam for trading in your old inefficient car or truck. Here are a few details of the program, you can read the complete bill here.

Your Trade-In:

1. Must be registered and insured for 1 year.

2. Must be newer than 1984 (Classic car nuts rejoice, nobody will be trading in grandmas 1957 Chevy)

3. Must be rated at 18 MPG or below. (Read bill for calculation formula)

4. Will be destroyed. The dealership MUST disable the engine by removing oil and replacing it with a Sodium Silicate solution which will burn up the bearings and seize the engine plus leave a coating in the block which will make saving the engine for rebuild economically unfeasible. Your car is then taken to the scrap yard and crushed.

5. You will only get scrap value ( -$50 for the dealer to use for administrative costs)

Your New Car or Truck

1. Must be financed (or purchased outright) or leased for a 5yr. or longer lease period.

2. Cars must achieve a rating of 22 MPG or above, trucks are 18 MPG or above.

3. Depending on the difference in MPG between your trade-in and new vehicle you may receive $3500 or $4500. 4 – 9 MPG difference you get $3500, 10 MPG and more you get the full $4500.

4. Must have a base MSRP (before add-ons, options, taxes, tags etc.) of $45,000 or less.

So is this good for the country, the economy, and the environment? I guess its up for debate. Many lower income americans have never had the money to buy a new car, they rely on cheaper vehicles for their transportation needs, this program will reduce the number of older, more affordable vehicles on the road. A bad thing in my opinion.

As for the environment, what is the impact of manufacturing a new vehicle, and scraping an old one? Weigh that with the increased emissions of leaving that old clunker on the road. I dont know the answer to this, but with any environmental question, there are always way to many variables that people do not take into account.

As for the economy, yes more cars will be sold, but now we will have more people with car payments, as well as less older cars on the road for people who can not afford a used car.

I guess the bottom line is that if you were in the market for a new car, and have an older clunker that you are driving, this may be an easy way to get $4,500. Just remember, your car will be destroyed, you will only get scrap value for trade-in (this effects taxes at time of sale) and you probably wont be helping the environment that much.

Car Buying In A Post Bailout Economy

kevin — Sat, 01 Nov 2008 16:10:32 +0000

Stressed out about the financial meltdown facing this country? Need a new car? It seems counter-intuitive to be thinking about a new car, but some times it is unavoidable. If you car is old and broken down, or if family changes necessitate a larger vehicle you have little choice but to start shopping.

The first thing to consider is buying new or used? I would strongly look at used cars right now since the price will be less and the last thing you need right now is more debt. We have a quick and easy link to search for a used car. Also don’t forget to search local papers and bulletin boards. As always AutoEducation.com has some excellent information on buying a used car.

If you have to buy new, make sure your credit is up to snuff. It has been reported that GM Finance is only writing loans to customers with over a 700 credit score… this eliminates about 58% of the people in the USA ! That’s not to say if your credit is below 700 you can’t get financed, you may have to pay a higher rate or go to a smaller lending institution. A great place to start your new car buying experience, is at SmartCarQuote.com a site which I created to help people buy new cars at the lowest prices.

If you can wait it out, I feel that the economic crisis will lift and credit will start flowing freely after the presidential election is finally decided. I won’t go into politics here, but I believe that no matter who wins, the economy has no where to go but up.