http://amateurassetallocator.com/2009/07/17/clunkers-for-cash-is-it-even-worth-it/ Amateur Asset Allocator Fri, 10 Feb 2012 18:16:33 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://amateurassetallocator.com/2009/07/17/clunkers-for-cash-is-it-even-worth-it/comment-page-1/#comment-4532 Chad Thu, 06 Aug 2009 02:26:12 +0000 http://amateurassetallocator.com/?p=1992#comment-4532 This cash for clunkers thing is a stupid idea. In most cases it results in the waste of a perfectly servicable vehicle with nothing wrong with it, that is most likely paid for. It entices people to think they are getting "Free Money" for thier "clunker" when in reality, they will most likely be saddled with a car payment for the next 60 to 84 months. Ok, so if i have a paid for "clunker" that is mechanically sound in good condition, the govt is going to give me up to 4500 dollars to destroy a perfectly good paid for car, in order to go buy a brand new car that is going to lose almost half its value in the first year to year and a half that I own the thing. tie up on average of 485.00 a month for the next 72 months, that I could have invested instead had i just kept my old car. Right now gas is 2.499 a gallon here. In order for the 4500 dollar "rebate" to pay off I would have to save over 800 gallons of fuel in the first year just to keep up with the depreciation on the new cars value in the first year. (assuming a conservative 6,500 dollar depreciation in the first year of ownership and figuring in the 4500 dollar rebate) This is STUPID!! No wonder people are broke. This cash for clunkers thing is a stupid idea. In most cases it results in the waste of a perfectly servicable vehicle with nothing wrong with it, that is most likely paid for. It entices people to think they are getting “Free Money” for thier “clunker” when in reality, they will most likely be saddled with a car payment for the next 60 to 84 months. Ok, so if i have a paid for “clunker” that is mechanically sound in good condition, the govt is going to give me up to 4500 dollars to destroy a perfectly good paid for car, in order to go buy a brand new car that is going to lose almost half its value in the first year to year and a half that I own the thing. tie up on average of 485.00 a month for the next 72 months, that I could have invested instead had i just kept my old car. Right now gas is 2.499 a gallon here. In order for the 4500 dollar “rebate” to pay off I would have to save over 800 gallons of fuel in the first year just to keep up with the depreciation on the new cars value in the first year. (assuming a conservative 6,500 dollar depreciation in the first year of ownership and figuring in the 4500 dollar rebate) This is STUPID!! No wonder people are broke.

]]> http://amateurassetallocator.com/2009/07/17/clunkers-for-cash-is-it-even-worth-it/comment-page-1/#comment-4431 karenc Mon, 20 Jul 2009 19:17:10 +0000 http://amateurassetallocator.com/?p=1992#comment-4431 Cash for clunkers is really designed to get older pickups and SUVs off the road, since most passenger cars get over 18 mpg and are therefore not eligible. As you indicated in your article, the improvements to the mpg required to get a voucher for these vehicles is so little, its almost meaningless. Since the clunker has to be crushed, you kinda have to wonder what the point is. Cash for clunkers is really designed to get older pickups and SUVs off the road, since most passenger cars get over 18 mpg and are therefore not eligible. As you indicated in your article, the improvements to the mpg required to get a voucher for these vehicles is so little, its almost meaningless. Since the clunker has to be crushed, you kinda have to wonder what the point is.

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