Crash for Clunkers

[Myself]

I was thinking back a few hundred years ago when I purchased my first car.  It was a 1952 Chevy Deluxe that I paid 95 dollars for and needed 3 installment payments to swing.

A few weeks after my purchase I was horrified to learn that I needed auto insurance to own a car, (no one in the family had ever had a car before).  I went to my local broker and learned it would cost me $350 for insurance on a $ 95.00 car.

So what happens to all the people who just traded their clunkers in on new cars?  Did they get quotes on what the insurance difference would be?  Did we just create another time bomb for the economically challenged?

[makattak]

I was thinking back a few hundred years ago when I purchased my first car.  It was a 1952 Chevy Deluxe that I paid 95 dollars for and needed 3 installment payments to swing.

A few weeks after my purchase I was horrified to learn that I needed auto insurance to own a car, (no one in the family had ever had a car before).  I went to my local broker and learned it would cost me $350 for insurance on a $ 95.00 car.

So what happens to all the people who just traded their clunkers in on new cars?  Did they get quotes on what the insurance difference would be?  Did we just create another time bomb for the economically challenged?

These people are purchasing NEW cars. Although $4500 helps a lot towards a new car, it is extremely unlikely someone who is that economically challenged can purchase a new car even with the rebate. I doubt that is the time bomb we created.

We did, however, remove a number of perfectly good used cars from the market. As such, we will be raising the price of all used cars, especially those whose value was less than $4500.

Yep, just another way for the government to hurt the poor by claiming to help them.

[AZRedhawk44]

Auto insurance is a human right.  We will create a government-mandated insurance system where everybody HAS to have insurance:  If they don't then we will financially penalize them.

Drivers that have more money drive newer cars, so we will subsidize the poor among us by driving up the rates on new cars.

Oh... wait.  We just screwed that one up with the cash for clunkers deal.

Hmm.  

[Myself]

These people are purchasing NEW cars. Although $4500 helps a lot towards a new car, it is extremely unlikely someone who is that economically challenged can purchase a new car even with the rebate. I doubt that is the time bomb we created.

Auto dealers can structure auto payment plans over many years to suck up all possible cash from those who can only marginally afford it.  I just wander what the added impact of vastly higher insurance premiums will be on top of that.

[Nick1911]

Here is what happens to the trade ins:

http://www.youtube.com/watch?v=X0IcIxhd8ks

 

Seems so needlessly destructive.

[Headless Thompson Gunner]

Seems so needlessly destructive.

It depends on how you define "destructive".  I would guess their definition is vastly different from ours.

[Rudy Kohn]

I... can't watch that video.  Not because the link doesn't work, but because I feel immense dread watching them pour that stuff into a perfectly good engine.   

[AmbulanceDriver]

These people are purchasing NEW cars. Although $4500 helps a lot towards a new car, it is extremely unlikely someone who is that economically challenged can purchase a new car even with the rebate. I doubt that is the time bomb we created.

We did, however, remove a number of perfectly good used cars from the market. As such, we will be raising the price of all used cars, especially those whose value was less than $4500.

Yep, just another way for the government to hurt the poor by claiming to help them.

Here's a kicker for ya.  Neighbor in our complex is on section 8, food stamps, disability, and Oregon Health Plan (State run healthcare).  They just went out, traded in significant other's perfectly functional older SUV type vehicle (don't exactly remember what it was) under the cash for clunkers program for a brand spanking new Pontiac.  But then, to make matters worse.......   They traded the brand spanking new Pontiac in on a slightly used Ford F-150 pickup that, since it's not a new vehicle, doesn't qualifiy for the rebate on the cash for clunkers.....

[makattak]

Here's a kicker for ya.  Neighbor in our complex is on section 8, food stamps, disability, and Oregon Health Plan (State run healthcare).  They just went out, traded in significant other's perfectly functional older SUV type vehicle (don't exactly remember what it was) under the cash for clunkers program for a brand spanking new Pontiac.  But then, to make matters worse.......   They traded the brand spanking new Pontiac in on a slightly used Ford F-150 pickup that would likely NOT have qualified for the rebate on the cash for clunkers.....

/clap

BRAVO. Way to work the system. (Judging by your description, they are quite adept at that already).

Unintended consequences are often amusing.

[K Frame]

I recently looked at replacing a 12 year old Subaru with a new one, or a 3 year old one.

The change in my insurance wouldn't have been all that much.

[charby]

I recently looked at replacing a 12 year old Subaru with a new one, or a 3 year old one.

The change in my insurance wouldn't have been all that much.

I did the same with my 98 GMC Jimmy with a newer vehicle (F-150, Suburban and Outback) the price difference was negligible.

[Viking]

Here is what happens to the trade ins:

http://www.youtube.com/watch?v=X0IcIxhd8ks

 

Seems so needlessly destructive.

You've just defined leftism in general.

[Reifen]

Sorry, wasn't sure if this belonged here or in the Politics section as it's satire and not an actual news story.  If I posted in the wrong place please feel free to move it.

Anyway...thought it was funny.

"In the cold-hearted, uncaring capitalist society of the past, where every man was for himself, people often reached advanced age without any government help. It is a shame that in the richest country in the world, old people were abandoned by society and survived on their own, sometimes until they were 117 years old. No one knew or cared about how long they lived because everyone paid their own medical bills. But those dog-eat-dog days are over. In the caring, collectivist America, no one will be allowed to live without government care. And since we are paying for you, we decide how long you can be a drain on the collective wallet.

The full entry

[El Tejon]

Reality is apeing art. :|

http://www.amazon.com/gp/product/B000PE0FDI/ref=pd_lpo_k2_dp_sr_2?pf_rd_p=304485901&pf_rd_s=lpo-top-stripe-1&pf_rd_t=201&pf_rd_i=0446579815&pf_rd_m=ATVPDKIKX0DER&pf_rd_r=0XFF3FRAB8JEJEQPWQEQ

[Gowen]

Looks like a prequel to Logan's run.

[Angel Eyes]

Looks like a prequel to Logan's run.

Or Soylent Green

[Jamisjockey]

Similar topics, merged.

[RaspberrySurprise]

Here is what happens to the trade ins:

http://www.youtube.com/watch?v=X0IcIxhd8ks

 

Seems so needlessly destructive.

The was almost as bad as seeing the pictures of thousand of Tokarevs, Maks, and Ak's being steamrolled. ;_;

[lupinus]

Time bomb?  I don't know.

I think it will depend a lot on what's getting traded in and just how much.  For used auto dealers, this could suck big time in a few years.  The same goes for those who buy used parts or can only really afford a used car.  In a few years what do those people do?

I think time will tell if we have another credit bust on those one, allbeit a smaller scale.  If you have a vehicle with no payments and trade it in under cash for clunkers, you now have a payment and likely higher insurance.

Not nearly as predictable as the housing market crash was though, and certainly nto to the same scale if it does happen.

[brimic]

I have an old pickup truck that I rarely drive any more (its our #3 car). It might be worth all of $300 in the condition its in- it runs but it has holes rusted clean through it. I'm considering listing it on Craigslist for $1500 for someone to trade in as a clunker. Its been registered and insured continuously for the last 15 years, so it should qualify.

Unintended consequences indeed.

[Perd Hapley]

Because destroying value is so good for our ecomony.  Yes, our ecomony. 

[Monkeyleg]

I swear it was a matter of minutes after I heard about the cash for clunkers program that I figured some folks would be scamming it. Just turn in an old clunker, get a new car, sell the new car, and pocket some taxpayer dollars.

Obama should know that. He was around Chicago long enough to learn criminal ways.

[Gewehr98]

And just where, exactly, is this cash for the clunkers coming from, hmmmm?  :rolleyes:

[Myself]

It doesn't come from anywhere, it's free money 'cause it's from the Gubbermint.

[crt360]

And just where, exactly, is this cash for the clunkers coming from, hmmmm?  :rolleyes:

The clunker fairy?   

Somebody's got a way different concept of clunker than I do.  I'd love to have many of the cars on the list.  How is a 2002 Tundra a clunker?  Where are people going to be able to find a decent old beater 4x4 to drive on the farm or deer lease?

I have a feeling the city bus system better start adding routes and planning for a lot of new riders.  There are plenty of people around here who are never going to be able to afford more than a $2500 used car, and I haven't found a part of Texas where it's easy to live without wheels.

The automakers better start contemplating the potential market for much less expensive, stripped down models.