It's not about getting clunkers off the road. It's about saving the auto companies, etc. Follow the money.
/off rant before I get started.
Yep, that's all its about. It makes perfect sense. The country's in debt up to our necks so let's stimulate spending by having people trade in paid-off vehicles for another loan payment. But the government knows what its doing. With the current economical status, most people who are using the cash for clunkers program would not have been approved for car loans. Unless, of course, someone somewhere figured out a way to make the loan amount to vehicle value ratio more in faovr of the finance companies. I don't know, maybe an incentive program where a third party (U.S. government) "guarantees" part of the loan amount. That way, in six months to a year when there is a record amount of repossessions, the finance companies will be out nothing and still making a profit. Makes sense to me.
I'm not even going to mention about the cars traded in have to be crushed and can't be parted, the colossal waste of money and time or the fact that once the cars are crushed and the metal sold to China so someone can buy a cheaper toilet paper holder. Thank you politicians! :screaming: