The government’s talking about a program to pay buyers up to $4500 to trade a low milage vehicles in on high milage models.
Sounds okay, but won’t the dealers and makers simply roll that money into the final “out the door” price like they did with rebates?
Peace,
mangeorge
Yeah, and I have a whole lot more doubts on top of this. It sounds like someone took the “broken window” example in their econ 101 class the exact wrong way. Well, now the government pays you to smash you window, and replace it with a newer, shinier window, to keep the window installers in business?
What have we gained? A slight upgrade in the transportation infrastructure for individuals, and the destruction of a lot of perfectly usable cars. Lots of excessive waste of usable durable goods, which is the last thing our consumption-driven society needs.
If the government wants to keep the auto workers employed, I’d much rather they just get jobs directly working for public works projects.
Well, my question is; do the clunkers actually even get removed from the road? Are they required to be junked or do they just get re-sold again and back on the streets?
The goal seems to be to stimulate the purchase of newer cars, and benefit the environment by putting cleaner cars on the road.
But do the old cars really go away? Dealerships make a lot of money on used car sales, sometimes more than on new cars. A small credit for turning in an old car and the dealer can’t re-sell it? You will need to credit the buyer AND the seller.
I think the idea is that instead of trading my gas hog Ridgeline in on another newer one, I’ll go for a Honda Fit. Which I’ll admit makes a lot of sense.
Ninety-nine percent of the time I’m alone in my pickup, and there’s nothing in back. Except a bed exrender, turned inwards. 
I just really like the truck.
As I understand it, the program currently in Germany does require that the old car be scrapped. Much to the consternation of the junkyard owners involved, who get usable cars that can’t be sold or stripped for parts.
Even if people use the program to replace old gas guzzlers with newer more efficient models, I’m not quite sure there’d be a net environmental benefit. It takes a lot of energy to produce one car and scrap another, and if you’re throwing out a useful car before it’s natural death, part of that energy gets wasted. Someone would have to do the life cycle analysis to be sure of that…
Is that arse about? Wouldn’t they be trading high mileage models in for a low mileage vehicle?
Just insert the word “gas” between high and mileage.
Okay- got you now. Thanks.