I was reading in the news that auto sales have dropped 14%. I was wondering if a program like the one they ran last year would work. They called it Cash for Clunkers, remember that?
I do not really think that a program like that is going to work this time. The difference between this year and last year is the unemployment rate. People do not have the money to buy new cars even if they get cash for the old one.
There aren't that many cars left that would qualify anyway under the old programs restrictions. I don't think it would work. I think they blew their wad so to speak getting all these people in at once to buy new cars and now not many people are in the market for one or have the money for one.
I have yet to see anything like that in my area but I am sure that some pop/mom shops around might do something simple along the same lines. I know there used to be one place local that gave great trade in prices if you purchased your newer car from them.
On paper, the cash for clunkers thing barely worked. I don't think anything like that would stand a chance this time around. Our economy is much worse now.
No one has the money or job security to trade these days. If they do have the money, they aren't letting go of it like they used to. I know we have been saving more than we did before just to have a good cushion just in case one of us lose our job.
Cash for Clunkers
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