Cash for clunkers worked like this — (Sticker MSRP + markup + options + fees + taxes - $4,500 = Price you paid).
By Daniel at 29 September, 2009, 11:46 am
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Financing 100% of the price of a car at anything other than 0% means you are under water after the first year. Most people put nothing down when buying a car — just ’sign and drive’ for whatever you can qualify for and believe the dealer has your interest at heart like with real estate agents.
The average new car depreciates 10%- 20% in first year. A 60 month car loan won’t exactly ‘build equity’.
Being in the Auto Industry, I can tell you we are having the worst September in our history. It’s like September,11th. A ghost town on lots across the country according to Automotive News. So what did they accomplish? The Feds that is. Absolutely nothing. Smoke and mirrors. Watch the reports coming out next week. It will scare the hell out of you.
Buddyboy
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The more you do the math the worse Cash for Clunkers comes out! I wish someone would do the math on how much it cost auto repair shops and car donation charities.