The golden age of clunkers, ended?
The latest government stimulus program, Cash for Clunkers, or CARS, seems to have been a hit. Already the program is out of money to continue dealing. Or so has been reported by the news outlets.
Because of our interest in the program, my dad sent me an email this morning informing me of this article. In part, I replied, "... I predict that the doors on the coffers of our money will not stop flinging wildly. They'll figure out another way to allocate billions." And what was the next article I saw? It was titled "House Racing to Pass $2 Billion Bill to Boost 'Cash for Clunkers' Program".
I am skeptical of the actual stimulative effect that this program may have on the economy. In a recent meeting with a Gregory Pontiac (American Fork, UT) sales rep, he frankly told us that they had raised the price on all their vehicles in anticipation of the government program. In his words, if the government was will to throw in a couple thousand bucks, why not increase the profit margin a bit while still making it look like a deal to the consumer. Ah yes, now I as the consumer and tax payer not only get to fund this government program, but now I get to pay more for my vehicles. Where's the win-win that the government was touting this program as being?
Oh, and may I just add that while this admission was frank, I do not recommend Gregory Pontiac as an honest dealership.
Here are some gems from the articles:
"I didn't sleep at all last night," Goldberg [a dealer] said. "I feel terrible. All of a sudden the money's gone. It's a little nerve wracking."
"...lawmakers from the two states were assured by Transportation Secretary Ray LaHood that the program would continue while the Obama administration looked for more money."
Somehow, I can envision this same situation once a potential government-run 'free' health care program runs out of money.