How successful was Cash for Clunkers?
http://www.boston.com/business/articles/2009/09/19/car_showrooms_quiet_after_clunkers_clamor_ends/
It seems that it created artificial demand that left dealers with cash flow problems and basically "robbed" car dealerships of near future sales.
Back - Why the hate? Can I not be proud of the state that I live in? It's my state flag, I will not apologize for that. Quit being a bigot.
OK...it's purpose was to:
1) Stimulate the economy & rebuild the auto industry
2) Help the Poor
3) Help the environment
So what HAPPENED?
1) Dealers spent tons of $$$ in advertising to have the program cut short. The demand died with the program and the dealers are hoping to be paid before they go bankrupt (being literally out hundreds of thousands of dollars)
Also, 70% of the car purchases were from foreign car makers so the American businesses and taxpayers were literally screwed -Again.
2) The poor STILL were not capable of buying cars AND due to the clunkers having to be scrapped (not having resold for parts) the poor who have to get their cars serviced because they could not AFFORD to buy a new one will end up paying a fortune as parts will not be available or will have to go black market as the thieves bought the clunkers on the sly.
3) The clunkers that were "scrapped" have done no good for the landfills of this world.- so much for the environment
So...WHO exactly benefited?
The people who COULD afford a new car to begin with....not those in need- that's for sure.
The people who needed it most wouldn't qualify for the loan. And what KIND of cars were sold?? Well, locally, the Mercedes car dealership did pretty well.
