Financial Guru and radio personality Dave Ramsey the Cash for Clunkers program. He compares it to sub-prime mortgage program that was a major contributor to recession we’ve been experiencing. I also agree that it may put people in cars that should not be buying a new car who normally wouldn’t be able to. Which is much like the sub-mortgages were doing in the housing market.
Cash for Clunkers was simply a way for broke people to buy cars that they really couldn't afford. – Dave Ramsey
My thought on the matter was that on a personal level it doesn’t make financial sense. Most of the vehicle that were turned in more than likely were already paid off and owned by the drivers. Now they take a new car payment every month. Also new car more than likely takes a hit on value as soon as it’s driven off the lot. Which nullifies the $3500-$4500 discount. The whole program was a bad idea in the first place which had minimal (if any)impact on the environment when you consider the “carbon footprint” of manufacturing a new car to replace the clunker.
It may have been a good deal for those already planning to buy one anyway and could afford it. I’m glad it’s over and now the taxpayers got the bill.
