Sunday, August 02, 2009

Insanity

This little detail of the federal Cash for Clunkers program eluded me until just now: Dealers who obtain the traded-in cars are being forced to destroy the engines to make sure that the cars aren't re-sold on the market.

I understand not wanting to pay the $4,500 for the same car more than once, but couldn't we just record the VIN# of the cashed-in car to prevent fraud? As it stands, the program is destroying some perfectly good cars - ones that could be re-sold for cheap to needy people, or even better, DONATED by dealers to charities.

Here we are in a major recession, with an increasing number of people unemployed and unable to afford new cars, and the government is paying people to destroy working vehicles. For some reason I'm reminded of the vehicle-less victims of Hurricane Katrina who were trapped by government incompetence; I wonder what they would think of this program?

Coincidentally, I just made my last payment on my big roomy gas-guzzler. If and when the time comes, I'll give it away to someone who needs it before I let it be destroyed.

1 comment:

Oleg said...

The clunkers program is nothing more than stimulus and bailout of the auto industry under the guise of "environment conservation". It is a push and pull strategy to revive car sales. The program pulls existing cars out of the market by destroying them and pushes people into buying new ones by subsidizing the sale. The destruction is just as important as the subsidy for the maximum effect. Of course they could not make it apply only to US cars, because Europe and Japan would cry foul and retaliate. So, enjoy your clunkerless roads, compliments of additional 3 billion in deficit.