If you haven’t been living in a cave, I’m sure you’ve heard about the cash for clunkers fiasco that has been going on. If you haven’t gotten wind of the situation, I’ll give a real quick run-down on the new government program.

Basically, you trade in your “clunker” and get up to $4500 toward a new car. Great huh? Well, it could be, but there are a lot of problems with the new program — the biggest problem includes the fact that the program ran out of the “cash” portion of the cash for clunkers within the first week or so.

Gee, people are strapped for cash and you’re going to offer them an incentive that could be 1/4 to 1/2 of what a new car is going to cost and you didn’t think there would be a massive run to car dealerships? The program was initially given $1 million dollars (which as I said ran out in about a week). Congress just gave cash for clunkers another $2 million. They think this will last until the end of September.

Of course there are tons of stipulations over what a clunker is. And to make things just a bit more confusing, the government has changed those stipulations in the middle of the program.

Oh and if you think there will now be a ton of used cars for sale pretty cheap, you’re wrong. Part of the deal is that the cars must be permanently disabled when they are traded in.

It gets better, some dealerships are making customers sign papers that they will either pay the incentive back OR return the car if the government runs out of money or the trade in isn’t eligible on the next round of government adjustments. So, you’re old car is now “permanently disabled” and you are stuck with a new car that you may or may not get your incentive toward. Nice one, huh?

A lot of people are opposed to the program. Some are opposed to cash for clunkers because of principles.

Honk if I bought your clunker bumper sticker.

Their feelings are that the government is subsidizing the car makers/dealers… and in a way, they are. And people who can’t afford a new car are getting them anyway…. doesn’t that sound a little familiar too? (Hint, lots of people getting new houses they couldn’t afford. And that worked out soo well, right?)

Some people are opposed to the government disabling the cars… hey, there are a lot of NICE old cars out there.

Anti cash for clunker bumper stickers.

Anti cash for clunkers bumper stickers.

What happened to “antique” cars or “vintage” cars… why does a car have to be a clunker just because it’s a little older or doesn’t get great gas mileage?

Oh and if you think that the cars people are buying with the cash for clunkers deals get better gas mileage, you may not be correct. You can get $3500 toward a vehicle if it gets 4 – 9 MPG. So, they can just trade off an old gas guzzling SUV and get a new gas guzzling SUV.

So… other than helping people buy new cars…which they probably shouldn’t be buying if they need that much incentive anyway… what did this program do? Other than go broke in a week, of course. Oh, that’s right, it helped car manufacturers dealerships sell some cars. But, don’t worry, the government isn’t subsidizing car makers and dealers.

No cash for this clunker bumper sticker.

No really, they aren’t.

Well, okay, maybe they are.

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