[Darnright]

All it will do is get car dealers to inflate their prices #4,500.00.

[Azzurri]

All it will do is get car dealers to inflate their prices #4,500.00.

And put people further into debt. After all, people with "clunkers" are probably those more likely to have financial problems already.

[lowbuck]

Actually, I think it will make the dealers less likely to offer some of their profit margin to make the sale!

Here in Germany the government offers 2,500 Euro (appx $3,500) if you buy a new car and scrap one that is at least nine years old.

As I have written elsewhere this makes sense here as for most of the people I know, as well as myself, the price of the cars we are looking to buy, this amounts to a REBATE of the 19% VAT. I don't know if this way by design or luck, but, under the EU laws no country can have a VAT of less then 15%. So, in effect, Germany is telling potential car buyers that there is a TAX HOLIDAY. What is not to like?

[Vaduz]

True and for their next bill we can trade in clunkers for breeder mules.