Tuesday, August 04, 2009

Used Cars

So creating a scarcity of used cars via the Cash for Clunkers program - now greatly expanded because it's been such a "success" - will drive up the price of the remaining used cars. That should help poor people a lot.

9 comments:

Donna B. said...

As an avowed used car buyer, I'm not happy. The last really "new" car we bought was an F150 pickup in 1990. In 1993, we bought a demonstrator with 18,000 miles on it that was titled as new, but purchased $10,000 off sticker.

Fortunately, from what I read, most of the destroyed vehicles are older Ford Explorers and minivans. Those were never on my purchase horizon, but the lack of them will drive up the prices of cars I would consider.

As long as good old Caddies are selling cheap, I'll be OK. You'd be surprise what excellent gas mileage they produce. My current 1998 model is giving me 23 city and 29 highway. We just spent $300 putting a new radiator in her and I figure that will give me at least another 60,000+ trouble free miles.

Eh... she needs shocks, so figure another $700 in maintenance in the next year. Then compare that to any payment on a new car even if you did get a $4500 rebate.

We're hoping we are good for another 5 years with the vehicles we have. By then, who knows what the used car market will look like?

Donna B. said...

But... the people I feel sorry for are those like my daughter who is often tasked with driving her boss and co-workers around. She's got to have a decent-looking vehicle.

But she's also fearful of driving an expensive one, lest she appears to not need a raise. That's why she didn't take my advice to borrow her mother-in-law's Jag.

I am SO glad I'm retired :-)

Michael said...

this whole program has only rewarded people who have always driven gas guzzlers. Since I've always tried to be responsible in that area, I don't qualify. And since when do democrats care about poor people? Who gets hit the hardest whenever they increase the tax on cigarettes? And, you are right, poor people can't afford a new car at any price.

terri said...

I've never bought/purchased/owned a new car....ever. One day...when I win the Lotto....I will.

I'm not sure what the effect will be on "poor" people.

For instance, whenever our cars have declined and we wind up sinking more money into them for repairs than the car is worth, especially if we think there are more repairs needed just around the corner, we usually donate the cars to Salvation Army. They use them in vocational training. If the cars are deemed "sellable" they might sell it for cash.....though I really hate to think of someone driving around in some of the cars we've donated.

Many older used cars never make it to a third party...they go straight to the junkyard once the owners are done with them....Like my 1st car--a Dodge 600 that I would have gladly filled with explosives and pushed off a cliff.

Anonymous said...

C4C hurts the poor in many ways.

1. The money is essentially welfare for the rich Obama cronies. The poor can't afford a new car on a whim.

2. They are destroying the cars. Used parts will be harder to find.

3. They are destroying functional cars which would go to the poor.

4. Finally, the buyers are buying anything but GM or Chrysler. We are screwed because these companies are not getting the boost they need. UAW workers are going to see more layoffs. In essence, C4C has become welfare for Toyota.

jaed said...

That should help poor people a lot.

It will make them virtuous, though. People who cannot afford a new car should be taking "transit". Waiting at bus stops in the rain builds character! (Particularly when the transit authority has cut routes to the bone - as they're doing where I live, because the buses are so heavily subsidized that increased ridership is an economic disaster - the fares don't pay for the ride.)

I would put a sarcasm tag, except that I've actually heard that argument.

terri, you may drive cars until they're ready for the junkyard, but most people aren't that thrifty. They'll trade in cars after a couple of years. Others further down the line will trade in a ten-year-old car with a lot of mileage left in it, and so on. Your own experience won't help people who can't afford a new car and who will in fact be harmed by this program.

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