Your trade scenario wouldn't be eligible. You can read the rules at www.cars.gov but basically the new vehicle you purchase has to get better mpg then the one you're trading. The better mpg the new car gets, the more credit you get, up to $4500.
Im wondering what this program is going to do to the used car market..I have nice vehicles now, but most of my life all I could afford was a clunker, most people are in that situation and drive new cars anyway..that is part of the trouble this country is in right now. are we going to next have a bailout plan for all these gomers that buy new cars and cant afford them.
also; if you destroy millions of good running so-called clunkers and cut the number of used cars on the market (supply/demand) will likely cause the cost of clunkers to rise making them too expensive for the poor to afford. why would someone sell there $1500 clunker when they could trade it in for $4500? I believe this is another case where the Government causes ten problems solving one.
We deal strictly in used autos and are exempt from assistance. However, we have seen a substantial increase in customer traffic and sales. From the feedback we've received, it is being driven by poor experiences at new car dealers when trying to use the cash for clunkers option.
This is what's currently happening in the used market:
The decline in new vehicle sales during summer 08-09, impacted the amount of vehicles of being traded in far more than clunkers has.
Example: The rental agencies have practically stopped buying new cars and are holding onto their units much longer. When they finally sell them at auction, they have more miles and are in far worse conditions.
As for as waste, the goverment has been wasting your taxdollars on crappy military programs for decades. Planes that cannot fly, tanks that cannot shoot straight, and missles that cannot find their targets. Some units went into full production costing comparitively far more than C4C. There are boneyards full of acres of those mistakes.
To quote a *gasp* republican, "where's the outrage"
Example: The rental agencies have practically stopped buying new cars and are holding onto their units much longer. When they finally sell them at auction, they have more miles and are in far worse conditions.