Well…isn’t this interesting

Discussion in 'Politics' started by MadMo44Mag, Oct 27, 2009.

  1. MadMo44Mag

    MadMo44Mag TGT Addict

    Jan 23, 2009
    Ignore all the gas savings crap and just look at how the 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 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 lets 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 years of interest on the car loan
    but lets 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 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.
    + a payment and interest to the bank.
    And, a chance to ruin his credit record if he's too much in debt already and loses his job.

    How's that hope and change working for you?


  2. SiscoKid

    SiscoKid Active Member

    Jun 28, 2009
    Brilliant analysis. I said similar all along, and I ain't a Rocket Scientist.

    Not only said everything in the article but I also said this.

    Just WHO were most of the "buyers"??? Most were drivers who probably were planning to buy within the next six months. So what?

    Now the auto industry is really hurting. It hasn't been publicized much (wonder why?) but last month, the first after Kash for Klunkers, sales were down to the lowest in years. I bet it will be even worst in October, especially with the Xmas season coming.

    Plus, what about the Auto Parts houses? With fewer used cars around, fewer buyers of car parts. The Klunkers were stripped, then smashed for recycling. So now the Auto Salvage yards have an abundance of used parts.

    Look for Auto Zone and O'Reilly's to holler for a bailout. Used parts manufacturers too.
  3. thorkyl

    thorkyl Active Member

    Oct 13, 2008
    Brazoria County
    And this is a surprise?
    That's why I just went and bought my truck and refused to do the C4C scam.

    It upset the dealer to no end when I refused to give them my 20 year old monster.
    It even upset them more when I told them what I would pay. It's good to go shopping for a used truck with a NADA book in you hand. You can tell the sales manager where to put his value...
  4. thorkyl

    thorkyl Active Member

    Oct 13, 2008
    Brazoria County
    They put a special additive in the motors (oil with metal shavings) and ran them till they popped. Then crushed them and put them on a slow boat to china for the scrap metal.

    Where do you think o got the money to do this deal.
  5. DCortez

    DCortez TGT Addict

    Jan 28, 2009
    Houston, Cy-Fair
    If it sounds too good to be true...
  6. TexasRedneck

    TexasRedneck 1911 Nut Lifetime Member

    Jan 23, 2009
    New Braunfels, TX
    Close - no cigar.....

    If a Democrat tells you he's here to help.....
  7. TxEMTP69

    TxEMTP69 TGT Addict TGT Supporter

    Feb 17, 2009
  8. TexasRedneck

    TexasRedneck 1911 Nut Lifetime Member

    Jan 23, 2009
    New Braunfels, TX
    Y'know, this whole administration is nothing but smoke and mirrors.....what are folks gonna do come April, and they realize that the "pay increase" they got was nothing more than a lowering of the withholding rate - that their actual taxes did NOT decrease, and many will be owing to the IRS?!?!?

    Folks, if you ain't figured THAT out yet, you'd BEST start puttin' extra $$$ aside until you can check to see just what your tax bill is gonna be!!!!!

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