Wednesday, November 04, 2009
Clunk... Clunk... and Clunk again...
That "Cash for Clunkers" program worked out sooooooooo well, didn't it?
Not! As was speculated before it even went into effect, all it did was create sales in July & August that would normally be there in September and October. Which is why Sept & Oct sales #s dropped like a rock.
Not! As we also see, the vast majority of trade-ins were for getting newer pickup trucks to replace older pickup trucks, with only 1-3 mpg increases.
Not! As dealers wait... and wait... and wait... for the government to reimburse them for the program.
Not! As the salvage yards are backlogged with the trade-ins.
Not! As used car prices have increased 16% over last year.
Not! As you may have paid too much in taxes on that trade-in.
Not! As we find out that this big government boondoggle will cost us $24,000 per car (that's our tax dollars at work, baby!).