Downside of "Cash for Clunkers" Bill

"Cash for Clunkers" (Added: June 26, 2009)

here's money expert stacy johnson's take on the new law... and as you'll see, he thinks that for most people, this is a turn down a blind alley. (more)

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By: Money Talks Stacy Johnson | WSAV-TV
Published: June 26, 2009

The "cash for clunkers" program: it gives car buyers vouchers worth up to $4,500 toward a new car, providing they trade in a gas-guzzler. Sounds like the perfect way to jump start car-buying while cleaning up the environment, but it probably won't do either one because when you look at the fine print, almost nobody will get the full benefit.
"cash for clunkers" - replaces trade-in, not adds to it) for example, the $3,500 to $4,500 voucher only kicks in if your trade-in is worth less than that.
In other words, if the car you're trading in is worth more than $4,500, you won't get a dime.
(cash for clunkers - replaces trade-in, not adds to it - must get less than 18 miles per gallon) problem two? Your trade-in car has to get less than 18 miles a gallon. while some trucks and suvs will pass that test, almost all cars...even old ones...get better mileage than that.
So the "cash for clunkers" program is really only good for people who are driving a gas guzzler worth less than $4,500: probably a group of people who are either very frugal...or can't afford a new car.
And if you're in either of those groups...you're probably better off selling that gas guzzler yourself...rather than accepting a lousy trade-in offer...then buying a used car that gets better mileage.
If you're driving a clunker and thinking about buying a new car... you should check your car's gas mileage at the epa website and it's trade-in value. Read the details and restrictions of this new program...then see if it makes sense.
The bottom line of this new deal is that it's really not much of a deal at all...for you, detroit, or the environment. for Money Talks, I'm Stacy Johnson.

Downside of "Cash for Clunkers" Bill

"Cash for Clunkers" (Added: June 26, 2009)

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