C4C bad for non Clunker owner/buyer

[stklee]

While the C4C has its pros and glad clunker owners are able take advantage of the incentive. However, us non-clunker owner/buyer is getting pushed on the sideline watching dealers selling firm at MSRP. Take Dianne at Manhattan Beach Toyota for example, for the longest time, she has been offering small discount off MSRP for us Priuschat members until the demand from this C4C surges. Can't blame her for that, it is all supply and demand. Why give away profits when the demand is so high. It just sucks for us non-clunker owner buyer. Guess we have to wait until they run out of money again before getting a decent deal.

[JRitt]

The C4C program has caused a run on buying new cars. The dealers are actually running out of cars and are begging the manufactures of certian models to send more. Because of the higher demand for these cars and a lower supply the dealers are asking for (and getting) higher prices for them.

[LRKingII]

Originally Posted by stklee

While the C4C has its pros and glad clunker owners are able take advantage of the incentive. However, us non-clunker owner/buyer is getting pushed on the sideline watching dealers selling firm at MSRP. Take Dianne at Manhattan Beach Toyota for example, for the longest time, she has been offering small discount off MSRP for us Priuschat members until the demand from this C4C surges. Can't blame her for that, it is all supply and demand. Why give away profits when the demand is so high. It just sucks for us non-clunker owner buyer. Guess we have to wait until they run out of money again before getting a decent deal.

I'd be willing to bet a beer (or beverage of choice) that it wasn't Diannes choice to stop offering the discount.

[ALS]

The C4C demand is already tailing off some. If you wait another three months or so you should be able to score a Prius with a $500-$1000 discount. Be patient you will be able to negotiate a deal down the road.

[radioprius1]

Originally Posted by stklee

While the C4C has its pros and glad clunker owners are able take advantage of the incentive. However, us non-clunker owner/buyer is getting pushed on the sideline watching dealers selling firm at MSRP. Take Dianne at Manhattan Beach Toyota for example, for the longest time, she has been offering small discount off MSRP for us Priuschat members until the demand from this C4C surges. Can't blame her for that, it is all supply and demand. Why give away profits when the demand is so high. It just sucks for us non-clunker owner buyer. Guess we have to wait until they run out of money again before getting a decent deal.

There are only two groups of people that C4C is good for:

1. Broke-ass people who can't afford a new car. I bet in 3-6 months there will be a ton of cheap cars on the market because people got themselves into cars they can't afford. Just like the housing/mortgage problems.

2. Anyone who works for car dealerships.

Me? I don't fall into either group. So I see my tax dollars go to pay for someone else to get a lot of money for their car. Thanks!

[LRKingII]

Originally Posted by radioprius1

There are only two groups of people that C4C is good for:

1. Broke-ass people who can't afford a new car. I bet in 3-6 months there will be a ton of cheap cars on the market because people got themselves into cars they can't afford. Just like the housing/mortgage problems.

2. Anyone who works for car dealerships.

Me? I don't fall into either group. So I see my tax dollars go to pay for someone else to get a lot of money for their car. Thanks!

You seem to know alot about who or why people might use the C4C program. Must be nice to be all knowing.

[radioprius1]

Originally Posted by LRKingII

You seem to know alot about who or why people might use the C4C program. Must be nice to be all knowing.

You're right, not everyone who traded in a clunker is "broke-ass". I apologize. I just don't see why my tax dollars should pay for someone else to buy a vehicle.

[a priori]

Originally Posted by radioprius1

You're right, not everyone who traded in a clunker is "broke-ass". I apologize. I just don't see why my tax dollars should pay for someone else to buy a vehicle.

In terms of sound economic policy, I just don't see the C4C as part of a decent long-term plan. It is part of an immediate economic stimulus, and it certainly has an effect. The effect, of course, is to encourage people to spend (one of the reasons the entire economy is in its current condition).

The better way to encourage people to dump their clunkers and buy fuel efficient models? Start taxing gasoline. This is a fairer way to apportion costs and benefits. The problem, of course, is with the folks who can't afford to buy a new car -- and these are the same people who can't afford to pay more for gas. (These also are the very same people who are smart enough NOT to buy under the C4C program, because they'd be buying a better used car if they could afford it. They couldn't find $10,000 to add to $4,500 to buy the cheapest possible new car, and they couldn't qualify for the car loan, either.)

[creativeguy]

Originally Posted by radioprius1

I bet in 3-6 months there will be a ton of cheap cars on the market because people got themselves into cars they can't afford. Just like the housing/mortgage problems.

So I see my tax dollars go to pay for someone else to get a lot of money for their car. Thanks!

Amen brother! The govt finds yet another way to screw the responsible middle class citizen who bought a house with a loan they can afford and a safe/more fuel efficient/non-gross-polluting car. And to top it off, a lot of the CARS money is being shipped right out of the country via foreign auto companies. I'm no lover of the big 3, but I'd rather have my hard earned tax money fix the problems at home instead of in Japan, Korea, etc.

[stklee]

The C4C program is effective in getting people to buy cars during this economy. However, I see several drawbacks:

1. While some of the clunkers truly deserve to be off the road but in reality, by getting rid of all these lower price cars (while still in good running condition), the lower income folks will have a hard time finding an affordable car.
2. It takes alot of energy to "junk" and recycle the clunkers. More energy, more fuel needed, more emission.
3. Spending our kids money and getting ourselves in the hole even deeper.

I sure hope the program will stop after this additional 2 billions.