Cash for Clunkers how you got screwed.

Discussion in 'Off-Topic Discussion' started by mmadden55, Oct 7, 2009.

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  1. Oct 7, 2009 #1

    mmadden55

    mmadden55

    mmadden55

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    And MOST of the Dealers still have yet to be paid

    Subject: The Clunker Story

    Ignore all the fuel savings, etc and just look at how the car buyer got taken to the cleaners:

    If you traded in a clunker worth $3500, you get $4500 off for an apparent "savings" of $1000. That is, you could have gotten $3,500 if you had just traded the car in. So you just really are $1,000 ahead at this
    point.


    However, you have to pay taxes on the $4500 come April 15th (something that no auto dealer will tell you). If you are in the 30% tax bracket, you will pay $1350 on that $4500.

    So, rather than save $1000, you actually pay an extra $350 to the feds. In addition, you traded in a car that was most likely paid for. Now you have 4 or 5 years of payments on a car that you did not need, that was costing you less to run than the payments that you will now be making.

    But wait, it gets even better: you also got ripped off by the dealer. For example, every dealer in LA was selling the Ford Focus with all the goodies including A/C, auto transmission, power windows, etc for $12,500 the month before the "cash for clunkers" program started.


    When "cash for clunkers" came along, they stopped discounting them and instead sold them at the list price of $15,500. So, you paid $3000 more than you would have the month before. (Honda, Toyota, and Kia played the same list price game that Ford and Chevy did).

    So lets do the final tally here:

    You traded in a car worth: $3500

    You got a discount of: $4500

    Net so far +$1000

    But you have to pay: ; $1350 in taxes on the $4500

    Net so far: -$350




    And you paid: $3000 more than the car was selling for the month before

    Net $3350

    We could also add in the additional taxes (sales tax, state tax, etc.) on the extra $3000 that you paid for the car, along with the 5 years of interest on the car loan but let’s just stop here.




    So who actually made out on the deal? The feds collected taxes on the car along with taxes on the $4500 they "gave" you. Th e car dealers made an extra $3000 or more on every car they sold along with
    the kickbacks from the manufacturers and the loan companies. The manufacturers got to dump lots of cars they could not give away the month before. And the poor consumer got saddled with even more debt that they cannot afford.

    The government’s merry men convinced Joe consumer that he was getting $4500 in "free" money from the "government" when in fact Joe was giving away his $3500 car and paying an additional $3350 for the
    privilege.




    Yep, he is right again

    I know someone caught up with this same scenario.

    He bought a new STRIPPED DOWN CHEVY pickup truck, with hand crank windows - He paid $17,000 for this truck after all the deduction including the $4,500 for clunkers.

    He told me that he could buy the same truck - 4 weeks later for $12,000 - without the $4,500 cash for clinkers. I saw the same truck 4 weeks before the Cash for Clunkers for $11,000. So who really made out - your right again - the IRS

    My friend has a $400.00 payment for the next five years-not good, and your right again his old pick-up truck was paid for, so he had NO PAYMENTS. Who made out??? GMAC.

    This NEW 2009 pick-up truck scared me everything under the hood is plastic. What's going to break first? Five years is a long time, when everything is made of plastic.

    How many of these people are going to loose their jobs before the first year of payment

    How many repos will there be?

    OR

    A vehicle at 15 mpg and 12,000 miles per year uses 800 gallons a year of gasoline.

    A vehicle at 25 mpg and 12,000 miles per year uses 480 gallons a year.

    So, the average clunker transaction will reduce US gasoline consumption by 320 gallons per year.

    They claim 700,000 vehicles – so that's 224 million gallons / year.

    That equates to a bit over 5 million barrels of oil.

    5 million barrels of oil is about ¼ of one day's US consumption.

    And, 5 million barrels of oil costs about $375 million dollars at $75/bbl.

    So, we all contributed to spending $3 b illion to save $375 million.


    How good a deal was that ???

    They'll probably do a great job with health care though!!
     
  2. Oct 7, 2009 #2

    emwhiter/t

    emwhiter/t

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    Learning...

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    Wow, I didn't even bother to put the numbers to it because I was uninterested but damn did those people screw themselves hard!
     
  3. Oct 7, 2009 #3

    mmadden55

    mmadden55

    mmadden55

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    People hardly ever do the math. Unfortunately.
     
  4. Oct 7, 2009 #4

    Jwmaddo

    Jwmaddo

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    yeah i noticed the price increase here jump ALOT after the program started. I knew people were going to get screwed over but...i didn't know it was going to be this bad.
     
  5. Oct 7, 2009 #5

    Killermaro

    Killermaro

    Killermaro

    King Retard of Stupid

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    Holy crap....eh its the government. What did you expect?
     
  6. Oct 7, 2009 #6

    icemanrld19

    icemanrld19

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    you opened my eyes. Good job
     
  7. Oct 7, 2009 #7

    svt4u2nvy

    svt4u2nvy

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    Here for the beer and lulz

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    the govt still paid 3500-4500 per car. Its not like the govt is selling the car to make money back. The cars were destroyed.
    So to me even after you pay taxed on the C4C money you "earned" the govt still comes up short.

    ???
     
  8. Oct 7, 2009 #8

    Fonzie

    Fonzie

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    now has a lighter version

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    I believe it.. fuckin' morons!
     
  9. Oct 7, 2009 #9

    phrog fixer

    phrog fixer

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    Man what a deal with "cash for clunkers", I can't what for the next deal with health care or what ever else comes around.
     
  10. Oct 7, 2009 #10

    Kevek

    Kevek

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    Some of the math is over simplified and misleading, but I agree that cash for clunkers was bad program.
     
  11. Oct 7, 2009 #11

    hi5ingmf

    hi5ingmf

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    Source to the Tax aspect?

    I could find it my self, I am just way too lazy
     
  12. Oct 7, 2009 #12

    EsChassisLove

    EsChassisLove

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    formerly Sittinslidewayz

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    dude fuck that shit
     
  13. Oct 7, 2009 #13

    Zerocool394

    Zerocool394

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    Ive been telling everybody this since the start they where going to do it this way.
     
  14. Oct 9, 2009 #14

    jmartin

    jmartin

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    yeah you should know that the government offers free money you are in the end going to get screwed. It's a given.
     
  15. Jan 25, 2010 #15

    v8p71

    v8p71

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    heres the best thing though. some of the cars that were trashed were actuallly collect ables countless 80's-90's Camaros and Mustang GT's where trahsed in order to get the same amount anybody would have payed to buy one. In fact, according to Car & Driver:

    1-1985 TVR 280I

    1- 1991 bmw M3

    1-1997 Aston Martin DB7 Volante

    67-late 80 Mercedes 560SL

    1-1991 BMW M5

    1-2005 Mazda Rx-8

    123-late 80's early 90's Chevrolet Corvettes

    11-Porches (various models & years)

    3-Ford Taurus SHO

    all lost there lives for some measly cash that isn't even a fraction of there worth.
     
  16. Jan 25, 2010 #16

    SilverGT

    SilverGT

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    Formerly fastv6stang

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    well, nothing is really free. :shiftyeyes:
     
  17. Jan 25, 2010 #17

    Labora

    Labora

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    o.O

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    I'm not sure the numbers are truely sound. But I still think the program is a horrible idea.
     
  18. Jan 25, 2010 #18

    hi5ingmf

    hi5ingmf

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    A lot of those are actually incorrect, and where caused by human errors. Especially those that you highlighted...

    http://jalopnik.com/5454090/exclusi...nked-exotics-finds-initial-news-reports-false

    EDIT: and the majority of Porsches were only 944 or 928... both can be had for astronomically cheap
     
  19. Jan 25, 2010 #19

    Rico

    Rico

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    x2 :shiftyeyes:
     
  20. Jan 25, 2010 #20

    blackpony

    blackpony

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    .........

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    wow thats pretty crazy...

    i wonder if the new home owner credit is the same way.. do you have to claim the 8k on your next years taxes??