Cash for clunkers. You know I saw a news piece where somebody traded in a Lamborghini? Thing looked perfect but didn't run so well. Was probably worth more than it's Blue-Book price of $140k in parts to any good scrapper.
So about 185,000 odd clunkers traded in, most of which presumably drove to the dealership to get scrapped. And lo and behold, it's putting a sudden crimp in my automotive supply chain. The used market and the used parts market. Now I'm getting screwed on the transportation end of the spectrum through no dang fault of my Gods-danged own.
Man, there been times in my life I could afford to finance a new automobile from the dealer. There been a time or two I think maybe I could have paid cash outright. But I never have and I don't think I'd consider it, not for what you can get a "nused" car for.
"Nused" means "new-used" or "new to me". Must be a country thing. But hells, take for instance the little beater truck. It gets used more than any vehicle in the flight line because it gets great mileage and you don't have to worry about....well, much of anything. Somebody bashes it in the parking lot? If anything that will streighten the body out a bit. Somebody keys the paint? What paint? Half of the maintenance is just tightening things that loosen up. In summer, that little engine is so....little that the AC pump takes so much power you have to keep the idle screaming high. That little thing maintains it's temp in the hottest Phoenix traffic snarl.
I bought it for $500. I been driving it for 4 years. There's nicer looking vehicles in the lineup and this is one way I keep them so. Average $500 for 4 years plus oil changes with your financed monthly payments you suckers. My cost per mile is pennies on your dollar. Or it was. Dangit. That $2k and under investment category in automobiles is just what folks on the bottom need. The ones that just got foreclosed on and their credit is ruined and that's all the cash they got.
I'm waiting for the "cash for clunker campers" program where they try and set a bunch of broken down old veterans up with nice new campers. That will be the day.
But I near about laughed my ass off. Now I knew this was a bum-steer for anyone but a consumer who really didn't need a new car. Ostensibly, this was designed to be a middle-class-soaker because anyone who would trade monthly payments for what they had before for nothing is either perfectly positioned or stupid.
What really rolled me was when I heard the cash you get for the clunker will be taxable income next time you file. Yeah, I kinda got an odd sense of humor because I laughed pretty loud and hard on that one.
I'm guessing in the way of things, like the housing market, we're looking at tommorrow's nused cars being sold to the public now. The nused market will bounce back. 185,000 people and counting just took on new debt. Come next spring many of them will be eating "green shoots" of grass on the hill sides.
I hope the chashed-out for their clunker types are buying lots of light 4-wheel-drive trucks with bitching stereos. I look forward to owning them.
Recent source: http://www.wave3.com/Global/story.asp?S=10937052