Cash for Clunkers or CARS is a new government program. I’m sure by now most everyone has heard about this. Basically your are given a trade-in value of between $3500-$4500 for your older less efficient (18mpg or less) “clunker” in exchange for a more fuel efficient car. Not only is it a government program but it also has the logic of a government program. The program is only available for new car purchase.
Why would a cash strapped government ask it’s cash strapped citizens to spend even more money that they don’t have? People who have old fuel hogs typically can’t afford to buy a new car. That or they are shrewd enough to choose not to. If they could and wanted to, they probably would have traded in these older vehicles before now. If they do this now, many of them will be even more cash strapped or will default on the loans they would be given. Hmmm, loan defaults? Over spending? This sounds familiar.
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