Cash For Clunkers Program Starts To Stall Out And Lose Mileage

The Cash For Clunkers Program Starts To Stall Out And Lose Mileage
by SuperJ

The fuel injected push to spare the environment from being polluted, turned into an overnight sensation to ramp up for auto retail purchases. However, over the last few days it seems that it is now losing it's steam. Considering that The Cash For Clunkers Program has been walking a tightrope for the last week or so. The hype came from a Fast & Furious style turbo boost. It's only a matter of time before it will crash and burn.

As it's written, the law will benefit few car buyers and those who might actually benefit from it probably shouldn't be buying a new car to begin with. Is this really the right time to take on more debt? A small change in gas mileage is a weak measure to swap efficiency for another new payment in your budget.

If you are driving an old, inefficient “beater”... you probably are doing so out of necessity. The government is already having trouble funding the program, consider how it will in turn effect you while trying to afford the new car payment and increased insurance coverage costs.


This is comparable to the housing and credit boom when people bought and extended themselves more than they could afford. As one industry analyst stated, “ Whenever there are discounts, people put the blinders on.”

Today's new rules call for the skill to think past the rebate. It's always a good idea to save the environment by reducing pollution. However, you need to consider your own financial environment at the same time when making purchases of any kind.

I will offer you my own story... last year I bought “my Baby Buick”. Yes, she was $850 the hard way. The hood and top were a paint chipping, fading shadow of her 1985 glory days. She came with free a/c in the winter and endless heat in the summer. Odd noises, clicks and squeaks could only be drowned out with the radio blaring from the one good speaker that refused to crackle like the other three. Like a daily game of chance, a random power window would not go up. The gas mileage was a complete waste to calculate. It was just easier to accept her as the fuel addict that she was, regardless of my feeble attempts to pour magic elixirs in her tank. However, she was easy on my financial budget. No monthly car payments and my insurance was a tiny fractional expense.

My point here is: Instead of The Cash For Clunkers Program rebate, a.k.a. trade-in-value per previous auto transaction, why not consider going for a slight upgrade? Go from your “beater” to “a little better”? Now, more than ever there will be plenty of used stock selections.


Recently, I took my own advice. When “my Baby Buick” took her final gasp and finished with the automobile death rattle while leaving me abandoned on the side of the road. As I waited for the tow truck, with my hand leaning on her hood, I called my used car dealer friend. Two hours later, I was driving “my better 1994 Cutlass” that was a/c challenged – however, she was slightly more fuel efficient and ready to roll.