Six days after the program started the federal Cash for Clunkers program ran out of funding. Some are calling it a huge success, but only a little over 22,000 cars were sold during that time. 22,000 people got new cars, some dealerships got some business, and the US Government purchased 22,000+ used vehicles at several times their actual value.
Yet again, those who deem it best at how to spend out tax dollars at making savvy useful purchases have proven once again their skill at finding a bargain. This “tax credit” to boost the economy and help the auto industry is a prime example of this. While congress is trying to come up with more fundings for this spectacular deal on used cars, and new car buyers are anxiously awaiting the chance to buy a car at prices closer to “after depreciation” prices, and dealerships are hoping to get rid of some inventory, while the government is in such a spending mood, I am still wondering what the feds are going to be doing with all those late model Buicks they now own?
I am not seeing any answers yet, but here are a couple of ideas.
Recycle the components of the cars, selling off the parts to help cover the cost of the program. That should net the US a few mil, and China will get more raw material to sell back to us.
Add those used cars to the real estate the feds have aquired from the banking bailout. Offer these properties with a free used car with every purchase.
Make every member of congress who travels more then 500 miles a year for fund raising efforts drive these vehicles to said fund raising efforts. Make them pump their own gas out of their personal incomes if they do so on an election year.
We’ll see how all this pans out, but sheesh what a stupid idea this was. At least I think it was.