Number One is the real killer:
1. The voucher replaces the trade-in deal you might otherwise get from the dealership; it’s not in addition to the car’s private sale or trade-in value. In other words, if you’re trading in a car that’s worth $3000, your net gain is only $500. Although if your car is worth $100, CFC couldn’t come at a better time.
Why do you and I have to pay for some other dude’s new car??
....So in other words, if my ‘clunker’ is worth more than $4500, I’m effectively losing money. This is a perfect example of what happens when the inmates run the asylum (Washington, DC).
Interestingly (or not), my first trade in was worth exactly that - $100. It was a beater to end all beaters - an old Ford with 300K miles and about three pages’ worth of things wrong with it.
To be honest, I’m amazed they took it at all. I know I was amazed when I was able to get it to the dealership without breaking down or spontaneously bursting into flames. :-)
Good article, but fails to mention another big weakness of this stupid law:
If you trade in an old car for a new one, your insurance goes up! Here in Virginia, so does your personal property tax. In a few years, that really eats into your $3500.
I have a perfectly good older car. I could buy a new one anytime I want, but from an economic standpoint it’s just plain stooopid. This new RAT scheme doesnt make it any smarter.