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Was Cash for Clunkers really that good of a deal?

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.

Answer Question

Asked by Anonymous at 10:24 PM on Nov. 30, 2009 in Politics & Current Events

Answers (11)
  • 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.


    Answer by Anonymous at 10:24 PM on Nov. 30, 2009

  • Think this was stupid for those who were crazy enough to swallow this wonderful scheme?

    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 that scheme might be designed by the same people who came up with Cash for Clunkers?


    Answer by Anonymous at 10:26 PM on Nov. 30, 2009

  • Some accountants would disagree with you, however, I did not participate in the program so I can neither agree or disagree personally.

    Answer by urkiddingright at 10:45 PM on Nov. 30, 2009

  • A friend of mine was thrilled to trade in her clunker for a new car. That is, until she discovered insurance on a brand-new car is much higher than on a clunker, the gas mileage the new car gets is only marginally better, and she has to work two jobs to keep up the payments.

    Answer by Anonymous at 10:49 PM on Nov. 30, 2009

  • Toyota and Honda liked it...

    Answer by grlygrlz2 at 10:58 PM on Nov. 30, 2009

  • it cost our government appoximately $25000 for every cash for clunker car, how does that sound for us tax payers.

    Answer by Anonymous at 11:12 PM on Nov. 30, 2009

  • Ohhh but I am sure SOME on the left are sooo happy for it... Buehler? Buehler?  Any Long term growth in the economy from this???  Anyone.... Anyone???


    Answer by grlygrlz2 at 12:04 AM on Dec. 1, 2009

  • Think of the bright side. It got 1000s of Obama bumper stickers off the road, lol.
    Sorry, I got a thing for bad jokes.

    Answer by Anonymous at 1:19 AM on Dec. 1, 2009

  • Just another reason for me to believe a lib has a completely different brain than a conservative. What a nutty thought process they have.

    Answer by itsmesteph11 at 8:15 AM on Dec. 1, 2009

  • I think this program was a really good example of how citizens see their government 'helping' them. Notice how fast people took advantage of this program, and the fact that they had to budget more into this program because of the amount of takers.

    I see the supposed good intentions of the program, but I think it had way more negative draw backs than it did benefits.  But that's just me. 


    Answer by QuinnMae at 9:36 AM on Dec. 1, 2009

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