Tuesday, August 4, 2009

Cash 4 Clunkers

One of the criticisms I've heard and agree with of the "cash for clunkers" program is that it reduces the number of affordable cars for lower and middle class buyers. This is a valid criticism.

I've spoken with a new Toyota dealer and asked them what they do with the cars that are traded in under this program. They told me that they are required, under their own dime, to drain all of the oil out of the engine and then fill it back up with (something like) "silver nitrate", run the engine until it ceases, and then have it towed to a junk yard.

This seems like an incredible waste of what would otherwise be a perfectly good, affordable automobile to someone in need of such. At least this dealer was unhappy that they were stuck with the labor and tow costs of the "clunker", as well as the entire paperwork process that they must go through to get paid, weeks down the road. And some want government run health-care...

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