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The Cash For Clunkers Numbers Are In, And It’s Not Pretty

John reports on just one of the great American giveaway programs. No more.

Via John Mulkey, Housing Guru (TheHousingGuru.com):

An article today in the Wall Street Journal reported that the per car cost of the additional sales generated by the Cash For Clunkers program was approximately $24,000 per car. Wow! Perhaps it would have been better if we just gave each of the participants a car. We could have given them an American car, which would certainly have made a difference to the American auto industry.

Why bother with setting up a cumbersome program that stimulates foreign auto sales and costs enough to give the cars away. And the argument that we removed a greater number of older, polluting vehicles from the road, while correct, is difficult to justify, considering the cost. The realities of the program are that it was an artificial, temporary, and costly stimulus that failed to create a lasting effect in the industry. And now that it appears that the First Time Buyer Tax Credit will be extended, I can’t wait to see its final cost.

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Posted by Steve Hoffacker - Real Estate Sales & Marketing Consulting and Strategies on 11/07/2009 12:19 AM

Comments (12)

Originally posted at: Steve Hoffacker's Sales Quips: The Cash For Clunkers Numbers Are In, And It’s Not Pretty

12 Comments on The Cash For Clunkers Numbers Are In, And It’s Not Pretty

NOV

The program costs enough to give the cars away and they are helping foreign companies. Wonderful!

Tim,

Ain't it great? Thanks. :)

Steve

As much as I like the business I may get from extending the tax credit isn't it along the same lines?

Hah! Seems to be the trend of what this country is turning into nowadays, Steve...very sad.

Leilani

Steve, thanks for the post. However, you're forgetting one important thing...never interject logic when it comes to a Government program!

So now we repeat the mistake and turn a "free market economy" into a socialist economy with the home buyer credit that REALTORS are screaming for joy about. It might be nice in the short run, but it is devastating to our economy and the real estate market in the long run.