Cash for cars?
This proves that history is a big waste of time in our schools. Apparently the current government hasn’t learned from past mistakes. Ever heard of the housing crisis President Obama or Vice President Biden? Or is that ancient history?
Let me get this straight and correct me if I am misinformed. People who can’t afford a new car or going to trade their clunker of a car for a brand new car payment? In today’s economy who can afford a brand new car? Plus let us not forget something, a little thing called registration and car insurance. Both will be quite a bit higher on a brand new car.
So let’s see what this ingenious idea will get us.
- People will stop making their car payments anywhere from 6 months to 2 years.
- We will now have car repossessions in greater amounts than ever before (Does housing foreclosures ring a bell?).
- We will now have all the banks being bailed out by the government again. Great move America!
As you can see we, not even our esteemed government and President Obama (who is supposed to be the most intelligent President in history) remembered what happenned (what, not even a year ago?) with the housing crisis even though the foreclosures are still going stronger than ever. I guess that is okay, we will just keep bailing the banks out and blaming the Presidents of the past.
As our current President says: “It is not my fault I inherited this debt.” Plus now he has the excuse that any future debt he creates will not be his fault either. Remember nobody ever does anything wrong, it is always the parents (or in this case Previous Governing Bodies) fault.
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John
Totally agree with this opinion. Although, even with trading in a “clunker” for a new car, the buyer still has to qualify credit-wise for the new one, which means he/she will more than likely make thier payments, but i see your overall point. The Housing crisis is the overall problem that spearheaded our recession, get busy with the more serious issue than inflating a new one. Also, in concordance with your closing statement….”Parent” is a title that is earned, not given.
That is good point about the financing, my only stipulation is will they qualify people, like the way they qualified people for new homes, except here will the consumers be just flying under the radar. If the banks remain strict, then nobody is going to get a new car. So the money spent organizing this whole thing will just be a big waste. Seem’s like wasting money is becoming an American Tradition.
I believe, the way this works is they give you, let’s say $4500.00 for your “clunker” as credit toward your new purchase. You then agree. Then at that point you would have to obtain financing, unless you are paying cash to complete the transaction. Financing for automobiles, from what I gather is not as easy to get as it was this time a few years ago. So I don’t think it is remotely close to the 0% down, infaltionary, “you can qualify for a 750k home with a 30k income loan”.
I think it must be noted that those who lend the money used to purchase automobiles are doing so without incentives of the gov’t contrived progams such as “Fannie” “Freddie”. This means, therefore, that there is more competition among lenders than there was in the mortgage lending situation. That increased competition forces said lenders to be more prudent in respect to whom they lend.