Why should anything cost anybody anything? *SMIRK*
And if I buy a $1K beater car, can I keep the $9K they're giving away? I can? Yippee!!!
Has anyone up there considered the effect this will have on the value of used cars? Will used car dealers now go out of business because the value of their inventory drops through the floor, but their working capital loans stay at the same value? Are we going to bail out used car dealers?
Then . . . when used cars have such little value and you bring your used card in as a trade-in on the new card — you know, the one for which you have a voucher — won’t that play out in the bottom line of the entire economic transaction?
I didn’t major in economics, but I did take in in college, and I do have an MBA, and I did take it in law school . . . and something’s just not right here.
I’m a new car dealer and I’m taking your used car in trade. It now it worth less than it was in the pre-voucher days because the net cost of new cars has decreased . . . why would I give you as much in trade today as I did before vouchers existed?
And . . . if you can’t make payments on your car loan because you lost your job . . . your used car is now worth less when the bank repossesses it and sells it. You’re further upside down. The bank now comes after you for more money after the post-repossession sale. Are we going to bail out those who default on car loans who now will owe more because the repossessed used cars are worth less?
Am I crazy and missing something here, or doesn’t this skew the entire market? Isn’t is dropping a boulder in a lake and nobody in Washington or in the media is willing or intelligent enough to focus on the residual waves caused by this?
His proposal only reaffirms my contention that cars are too high priced, and the unions get too much money.
The hell with this, I’m holding out for the free rice cooker!
yikes...how does this put people back to work ? it only clears out inventory.