Saturday, June 20, 2009

Cash for Clunkers Passes

I dislike being a pessimist all of the time, but...

Cash for Clunkers, officially known as Consumer Assistance Recycle and Save Act of 2009, pretends to offer consumers vouchers worth up to $4500.00 to trade in their presumed "gas guzzler" for more fuel efficient vehicles. You can find out how much your vehicle can qualify for at Fuel

So this will turn out to be another in the long line of Democrats in government, and Republicans going along for the ride, using voter dollars to buy votes from them. This one will likely be a zero some gain for car buyers and a boon to the UAW, who Democrats in government unquestioningly support. (Just look at the auto industry's government imposed failures that led to government supervised bankruptcies for proof. The result is the UAW receives a 17% ownership in General Motors. Now that is collective bargaining!)

What I predict will happen is this: Automobile manufacturers and Dealers, who are offering $1000 -$10,000 off of MSRP for new vehicles, will now be offering $500 to $5500 off MSRP. it will be a zero sum gain for consumers, and will be another government handout to autoworkers.

So we, as consumers, have to decide what we are going to do with this new free benefit. Use it or not?

I'm going to say "take it", and here is why. This government is going to ensure that gasoline prices become prohibitively expensive. They don't want to drill for domestic oil and natural gas and they want to squander billions on "alternative energy" and "green" research. They have spent us into a real hole already and are planning many more new spending programs, the most aggressive being "Public health care insurance".

So get a vehicle that will last and gets better gas mileage. Use your own money (Cash for Clunkers) to help pay for it. If your a good negotiator, it may be helpful. If you can, you should take as much advantage of this program as possible.

Go in to trade in your "high pollutin' gas guzzler". Just remember: It's a trick.

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