Those numbers are totally made up. Try these ones of what I'd imagine
you'd get trading in a $100 car like my '87 740 Turbo for a new Huyndai
Accent:
So let's do the final tally here:
You traded in a car worth: $100
You got a discount of: $4500
---------
Net so far +$4400
But you have to pay: $0 in taxes on the $4500
--------
Net so far: +$4400
And you paid: $0 more than the car was selling for
the month before (MSRP didn't change)
----------
Net +$4400
Gross (new Accent is 9,970) -5570
Basically you are 6 grand poorer, and have a much worse car. Without the
stimulus you'd be 10 grand poorer and have the same car. Buying a new car
makes zero economic sense- taking a huge discount on one if you're going
to buy one anyways does make a lot of sense.
Tyler
> Thought ya'll might enjoy this --
>
> The Plan, The Scam, The Man, Don't ya just love it when a plan comes
> together?
>
> The Scam
> Here is what a learned friend had to say about Democratic Math. It's even
> worse apparently than I first thought:
>
>
> It's way worse than that. Ignore all the gas crap and just look at how the
> stupid car buyer got taken to the cleaners:
>
> If you traded in a clunker worth $3500, you get $4500 off for an apparent
> "savings" of $1000.
>
> However, you have to pay taxes on the $4500 come April 15th (something
> that
> no auto dealer will tell you). If you are in the 30% tax bracket, you
> will
> pay $1350 on that $4500.
>
> 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 ripped off by the dealer.
> For
> example, every dealer here in LA 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 let's 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
> ----------
> Net -$3350
>
> 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 let's 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.
>
> 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.
> Think this was stupid for those who were crazy enough to swallow this
> wonderful scheme?
>
> Just wait until we get health care with no additional costs over what most
> of us now pay for health insurance and the best medical care in the world.
> Think that scheme might be designed by the same people who came up with
> Cash for Clunkers?
>
> LarryT
> 74 911
>
> OilAnalysis Time?
> Looking for Weber Parts or Porsche Posters?
> www.youroil.net
>
>
>
>
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