Cash for Clunkers (CARS) Program:Just Enough to Keep You Down

The Cash for Clunkers Program was represented as an economic stimulus plan that would do loads of good for individual Americans, various manufacturing firms - and the country in general. Implementation, suspension, controversy and general confusion surround the entire program. Sure, Americans are able to get a $4500 credit towards the purchase of a new vehicle if they meet certain conditions. That's great. And that sounds pretty good. However, there's more to it than that. Let's examine some of the most common and logical complaints that have been lodged against the Cash for Clunkers Program:

Legitimate Complaints about the Cash for Clunkers Program:

• Those with low incomes were maliciously enticed into financing new vehicles. It was known that they would be unable to meet their financial obligations - and suffer even worse credit ratings than before.
• When the entire country is suffering from record-high levels of personal bankruptcies, corporate bankruptcies, mortgage foreclosures and more, it is not the proper time to create an artificial credit boom.
• The Cash for Clunkers Program has caused a direct decrease in the number of vehicles able to be donated to charities.
• The program was not reserved for Americans. It was not only applicable to American-made automobiles. Yet it was still completely funded by the financial earnings of American taxpayers.
• It is estimated that, when variables such as governmental staffs, rent for office space, wages for employees, website development, printing expenses, advertisement expenses and more considered, the Cash for Clunkers Program ends up costing Americans roughly $6000 per vehicle - for a $4500 credit.

More Valid and Justified Complaints about the Cash for Clunkers Program:

• The CARS program created a faux auto sales boom that can no longer be sustained.
• There are various manufacturing firms across the United States that create components for older vehicles. Reducing the supply of older vehicles will directly affect their profit margins.
• The customization, preservation and restoration of vehicles are huge industries. Without older vehicles to customize, preserve and restore, again the profits of these firms will suffer significantly.
• The majority of the population is not affluent. People with lower incomes find it very difficult to financially maintain newer vehicles. They are trying to live beyond their means.

Insurance corporations, major automobile manufacturers, the United States government - and the governments of several other national allies including Germany, China and more - are benefiting from the CARS program far more than individual or group-based Americans - as usual. Guess they need to keep paying those $100,000,000+ salaries to their CEOs every year.

Read the fine print. Educate yourself. It never hurts to maintain a bit of skepticism when it comes to hugely powerful governmental organizations. The truth most often lies deeper than the surface. Take the time to explore before jumping into any program that can - and likely will - adversely affect your future credit rating.