LariAnn

Cash for Clunkers May Cost Up to $45,354 Per Vehicle

IMHO, the incentive is actually a gift to the dealers/auto companies, not the auto buyers. Why? Because, as we all know, the value of a new car drops precipitously once the car leaves the showroom floor. This loss hit is taken by the auto buyer, not the dealer. Also, if the auto was financed, the buyer is now paying interest on this loss as well. The dealer doesn't take a loss at all. So the dealer/auto companies got the $3500 or $4500 per clunker; and all the auto buyer got was $3500 or $4500 of debt as a part of the total cost/indebtedness incurred from the vehicle purchase.