Not everyone can afford a new car; often to save money consumers look instead for a newer car. However, Obama’s Cash For Clunkers program to stimulate sales for the Big 3, has robbed many low to middle class consumers of finding a newer car at a reasonable price.
Additionally, small auto dealers have had to compete with dealerships at auctions for used vehicles and have fallen to the wayside since the prices are double what they were before the Cash For Clunkers program. Here is where demand exceeds supply, with necessity dictating that car owners keep their clunkers having been forced out of the market for a newer vehicle because of the inflated prices.
Used vehicles not only cost more, but have higher mileage use attached to their higher prices. So what has been the end result of the Cash For Clunkers? Obama can point to the temporary increase in new car sales that the program created; however, this was soon followed by a equally dramatic downturn as the 2011 cars roll off the assembly lines with higher sticker prices out-of-reach of most average Americans. Plus this kept jobs in Detroit, but for how long? Instead, we know that one result for those in the low to middle class economic groups face yet another squeeze on their finances if their present older vehicles give up the ghost and they are forced to go further in debt for a new car. The only alternative these consumers have is to find a “deal” locally, but good luck with that since those who hesitate run the risk of not acting quick enough if you find a deal and want to check out the mechanics, or run the risk of buying a lemon “as is,” without any warranty or legal recourse for acting too fast.
Additionally, the used car business that always had a tinge of shady practices even in better times has become another venue for scammers and an additional source of fraud, preying on those who can ill afford to make a costly mistake. And let’s not even mention the impact it has on donations of vehicles for the working poor.
Well, so much for the green economy–say do you know when the next bus arrives? No, there aren’t any more buses tonight? Just great!
Tagged as:
Big 3 Auto Makers,
Car donations,
Cash For Clunkers,
Inflation,
New Car Prices,
New Cars,
Supply of Used Cars,
Used car dealers
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Cash For Clunkers Headache For Consumers Looking For Used Vehicles
by admin on September 5, 2010 · 0 comments
in Big 3, Cash For Clunkers, Commentary, Economy, Energy, Inflation, Obama, Reformed Liberal
Not everyone can afford a new car; often to save money consumers look instead for a newer car. However, Obama’s Cash For Clunkers program to stimulate sales for the Big 3, has robbed many low to middle class consumers of finding a newer car at a reasonable price.
Additionally, small auto dealers have had to compete with dealerships at auctions for used vehicles and have fallen to the wayside since the prices are double what they were before the Cash For Clunkers program. Here is where demand exceeds supply, with necessity dictating that car owners keep their clunkers having been forced out of the market for a newer vehicle because of the inflated prices.
Used vehicles not only cost more, but have higher mileage use attached to their higher prices. So what has been the end result of the Cash For Clunkers? Obama can point to the temporary increase in new car sales that the program created; however, this was soon followed by a equally dramatic downturn as the 2011 cars roll off the assembly lines with higher sticker prices out-of-reach of most average Americans. Plus this kept jobs in Detroit, but for how long? Instead, we know that one result for those in the low to middle class economic groups face yet another squeeze on their finances if their present older vehicles give up the ghost and they are forced to go further in debt for a new car. The only alternative these consumers have is to find a “deal” locally, but good luck with that since those who hesitate run the risk of not acting quick enough if you find a deal and want to check out the mechanics, or run the risk of buying a lemon “as is,” without any warranty or legal recourse for acting too fast.
Additionally, the used car business that always had a tinge of shady practices even in better times has become another venue for scammers and an additional source of fraud, preying on those who can ill afford to make a costly mistake. And let’s not even mention the impact it has on donations of vehicles for the working poor.
Well, so much for the green economy–say do you know when the next bus arrives? No, there aren’t any more buses tonight? Just great!
Tagged as: Big 3 Auto Makers, Car donations, Cash For Clunkers, Inflation, New Car Prices, New Cars, Supply of Used Cars, Used car dealers