2009-10-22 / Letters

Car manufacturers and dealers won, not vehicle buyers

My car qualified for the Cash For Clunkers program.

I did my research and found the vehicles that qualified to be purchased under the program that were in my price range.

I called the car dealer and asked if what I was looking for was available. He enthusiastically answered, “Yes !” He gave me the details, then came the price: It was the price I had found online plus the price of the rebate––exactly to the dollar!

I tried to clarify the difference with him, at which point he hung up on me. The consumer does not receive the rebate, the car company does.

So who won with this program? The car companies made their money 100 percent, plus 100 percent of the rebate. The companies who take the tradedin cars earn 100 percent of the value of the trade-in, as their purchase is now free. We have a moderately cleaner environment, as many cars with only moderate emissions upgrades were allowed on the program

Who didn’t win?

The consumer.

The consumer now has a new car payment that’s higher than the original purchase price and lost the entire value of what could have been used to lower the purchase price in a normal sales transaction with the tradein vehicle. The consumer received no rebate, as the rebate was added to the purchase price of the new car.

Now that many consumers have also lost their jobs, their homes are in foreclosure and their health insurance is unaffordable or expired, at least the consumer can live in their car––until it’s repossessed for nonpayment. Linda Chun Thousand Oaks

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