So, rather than save $1000, you actually pay an extra $350 to the feds. In addition, you traded in a car that was most likely paid for. Now, you have 4 or 5 years of payments on a car that you did not need, that was costing you less to run than the payments that you will now be making.
But wait, it gets even better: you also got a Democratic Deal from the dealer.
For example, every dealer here in L.A. was selling the Ford Focus with all the goodies including A/C, auto transmission, power windows, etc for $12,500 the month before the “cash for clunkers” program started. When “cash for clunkers” came along, they stopped discounting them, and instead sold them at the list price of $15,500. So, you paid $3000 more than you would have the month before. (Honda, Toyota , and Kia played the same list price game that Ford and Chevy did).
So, lets do the final tally here
You traded in a car worth: $3500
You got a discount of: $4500
Net so far +$1000
But, you have to pay: $1350 in taxes on the $4500
Net so far: -$350
And you paid: $3000 more than the car was selling for the month before
We could also add in the additional taxes (sales tax, state tax, etc.) on the extra $3000 that you paid for the car, along with the 5 years of interest on the car loan, but, lets just stop here.
So, who actually made out on the deal? The Feds collected taxes on the car along with taxes on the $4500 they “gave” you. The car dealers made an extra $3000 or more on every car they sold along with the kickbacks from the manufacturers and the loan companies. The manufacturers got to dump lots of cars they could not give away the month before. And, the poor stupid consumer got saddled with even more debt that they cannot afford. Now there will be defaults on these “Obama Good Deal Cars” like there were on the forced Obama Home Loans when he was a Chicago “Community Organizer” that gave loans to people who could not even qualify for a Sears Credit Card…
Obama and his band of merry men convinced Joe consumer that he was getting $4500 in “free” money from the “government” when in fact Joe was giving away his $3500 car and paying an additional $3350 for the privilege. Oh my America, what did you do???
This is THE END of another sad tale of how Obama and his cronies are fooling the gullible people of America.
Well put, sir.