📰 Auto News Cash For Clunkers: The downward spiral begins:

[Oreif]

http://www.autoloandaily.com/breaking-news/1731-cash-for-clunkers-causes-buyers-remorse-for-some

Cash For Clunkers Causes Buyers' Remorse For Some
By Liz Opsitnik
Wednesday, Aug 26 2009 09:28



For more than 600,000 consumers, the cash for clunkers rebate was hard to pass up. Receiving up to $4,500 from the government to trade-in an older, gas-guzzling vehicle to put toward a new, fuel-efficient car was a great deal, as some of the clunkers were only worth a few hundred dollars.

Now that all these buyers have taken on an auto loan or lease payment, some are regretting it.

In a new survey of nearly 1,000 CARS (cash for clunkers) participants, 17% say they have some or serious doubts they should have made the new-vehicle purchase, according to CNW Research.

The main reason for the buyers’ remorse is that they now have a $275 to $350 monthly car loan payment that they didn’t have before. This new monthly expense could negatively impact the total family budget more than expected before buying the new vehicle, the survey participants said.

Normally, buyers’ remorse affects about 6 to 8% of new-vehicle buyers within a month, according to CNW Purchase Path research.

Maybe the rebate deal was too good to pass up, or consumers were concerned about the effect of the older cars on the environment or they didn’t want to keep repairing their older vehicles any more. Whatever the reason, more than 600,000 people took advantage of the government cash for clunkers program and bought new vehicles. Now some are wishing they didn’t.

Click to read more...

 

[Runtz52]

who didnt see this coming

 

[Turk]

I can't wait to see what car sales are going to be like over the next 6 months.

 

[Yaj Yak]

I can't wait to see what car sales are going to be like over the next 6 months.

absolute shit.

 

[DanJ]

People are fucking retarded.

 

[Euro]

People are fucking retarded.

x2. Hmm, car payment, I didn't know we were gonna have one after this!!!

 

[victoryss]

hmm. Repo man get ready......

 

[Euro]

hmm. Repo man get ready......

In my strategic management class on Wednesday, we were discussing which industries are doing horrible, while in return think of one that is flourishing at the current time.

I should've said that one

 

[victoryss]

In my strategic management class on Wednesday, we were discussing which industries are doing horrible, while in return think of one that is flourishing at the current time.

I should've said that one

True story...That and bankruptcy and foreclosure lawyers,processors, etc...

 

[sickmint79]

pawn shops, payday loans

 

[Runtz52]

hmm. Repo man get ready......

whos up for getting into that line of work

 

[skeezer]

people can't even pay lawyers to get their shit started.

bankruptcy lawyers require money up front.

people are just shit out of luck and going to be living in the gutter.

 

[Rebel]

I saw this clunker sticking out of the garbage bin at Woodfield Ford. It was a funny sight seeing a car in the garbage like that. Looked pretty old and shitty but it might have been the spray paint all over it. There probably are a decent amount that benefited from the program. Like that dude with the broken maserati.

 

[02BlueGT]

Look on the bright side, our used cars may be worth more, now that there is 600,000 used cars that cannot be re-sold......... But that's mostly just wishful thinking

 

[Aircal]

oh and by the way, the Government is sending you a tax bill for the income you received by trading your clunker in...Nice

 

[Turk]

HAHA, that's bs. You don't have to pay income tax when you trade in a car towards a new/used one, why should you have to for thsi stupid program.

 

[GIMPY]

whos up for getting into that line of work

my cousion did repo for a month... they made him go down on the south side of chicago once and well lets just say he didnt get there car

 

[TonzKnock-G]

south side of chicago

 

[EmersonHart13]

LMAO, its SCURRY down here!

 

[Aircal]

HAHA, that's bs. You don't have to pay income tax when you trade in a car towards a new/used one, why should you have to for thsi stupid program.

Well number one its the government so yea nothing makes since.
Number 2 you don't pay income tax when you trade one in because the government isn't giving you money, its between you and the dealer.

 

[Oreif]

oh and by the way, the Government is sending you a tax bill for the income you received by trading your clunker in...Nice

No they will not. It is stated on the website and on the paperwork that you sign. The vouchers are not treated as taxable income. Think of the voucher value as taking the place of your trade-in value. The "money" goes from the government to the dealership as more of a credit than an income.

From the CARS Act website: (FAQ section)
“Is the credit subject to being taxed as income to the consumers that participate in the program? NO. The CARS Act expressly provides that the credit is not income for the consumer.”

Although some states are including the Cash for Clunkers credit in the price of the vehicle when they are calculating the State’s sales tax due on the purchase of the vehicle. Therefore, in effect, there is a tax levied on the $4,500 Cash for Clunkers credit. It’s just not an income tax. It’s a state sales tax. So when they bought the new vehicle they may have had to pay a little more sales tax at that time.

 

[Poopshinanigans]

i was talking to my brother about getting rid of income tax and having a federal sales tax. Kinda like VAT in Europe. I made the point in that the government would be making more money because people spend way more than they earn. These idiots prove my point.

 

[Aircal]

I find it funny the junk emails I'm getting talking about all the people on unemplyment or out of work getting their caf deals repoed already. Of course its Obamas fault is the piont of the emails. It just happened last month, how could you be behind on payments already...lol You can't it just the haters taking a cheap shot at Obama.

 

[TransAmy]

i really dont understand how these remorseful people could NOT have seen this coming? do they not have a high school education?

 

[sickmint79]

there are people that are defaulting already, people that are huge idiots. i blame congress for being dumb and making the program, but i'll give obama a kick for signing it too. as far unemployment, obama inherited the shit storm and the stimulus is probably helping the unemployment rate. (not that that means i think the stimulus is helping the economy; low unemployment doesn't necessarily mean great economy)