Cash for Clunkers Afterthoughts

Although new cars sales continue to be less than brisk in any comparative sense at least the incentives continue to attract a decent amount of consumer interest. On the plus side is that the manufacturers and dealers themselves are offering the deals themselves and not the government.


Although the intentions may have been well meaning, the fact is that the cost of the Cash for Clunkers program in 2009 is going to come with an imminent price tag for all Americans to have to deal with. Most people who we have spoken to feel that they hope there will be no more unrealistic government programs which not only do not change the situation or the underlying problems but in fact possibly make them a whole lot worse.

The statistics based on any falsely adjusted numbers simply cause confusion and most Americans are smart enough to see through this. When a program is setup to entice the consumer to buy new cars by offering to pay for a large portion of the purchase then of course there will be an increase in sales. Does this address any underlying problems? Not by any stretch of the imagination. After the smoke settles on the falsely generated buying stampede the problems are still there. Unfixed and un-phased. And soon enough comes the time when all of this program money has to be paid back. Most of the Americans we have spoken with are not exactly thrilled about having to pay for a substantial portion of someone’s new car. Someone they do not know and will never meet.

The fact that the sales increased due to a government pushed program such as Cash for Clunkers provides falsely inflated and unnatural sales numbers according to nearly al of the people we have spoken with. Once again this is not reflective of any increase or decrease in the reality of how well or poorly the new car sector is faring in the poor economic climate.