FEDZILLA'S CLASH FOR CLUNKERS

[Guest guest]

 

CASH FOR CLUNKERS

 

 

Read and then ReRead the part

about how much tax money the Government created off those who took them up

on this deal. Amazing. Federal bean counters on steroids.

 

 

 

SO...you took FEDZILLA up on its offer of $4500. dollars to

trade in your old " Clunker " (interesting choice of words)?

 

 

Well, let's see who got the best of that

" deal " ...

 

 

 

 

If you

traded in a clunker worth $3500, you got $4500 off for an apparent

" savings " of $1000. You could have gotten $3,500 if you had

just traded the car in. So you really are $1,000 ahead (depending on your clunker's value) at this point. Not too

bad...

 

However, you WILL 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 will

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, trading in a " clunker "

that was costing you less to run than the payments that you will now be making.

 

 

 

 

 

Even if you save $1,000. dollars a year in gas due to better

mileage, you're still gonna be in

the red for five years....hello?

 

But wait, it gets even better: you also got

ripped off by the dealer. For

example, the month before the " cash for clunkers " program

started, every dealer in LA was selling the Ford Focus with

all the goodies including A/C, auto transmission, power windows, etc ., for $12,500.

because competition was stiff due to poor sales from the stalled economy.

 

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. Now let's do the math...

 

You traded in a car worth: $3500

You got a discount

of: $4500

---------

Net so far

+$1000

But you have to

pay:

$350 in taxes on the $4500

--------

Net so

far: -$350 (that's minus...in the red)

And you

paid: $3000

more than the car was selling for the month before

----------

Net

Loss: -$3350

We could also add in the additional taxes (sales tax, state tax, dealer prep, etc.) on

the extra $3000 that you paid for the car, along with the five years of

interest on the car loan; but let's just stop here while you kick

yourself. (Suffice

it to say that those costs will be much higher than any savings you get from

" better mileage " .)

 

So who actually made out on the deal?

 

(1.) FEDZILLA

collected taxes on

the car along with taxes on the $4500

they " gave " you.

(2.) 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.

(3.) Manufacturers

got to dump lots of cars they could not give away the month before.

(4.) Lots of

good or repairable used cars got taken off the market, crushed and sold as

scrap metal to (ready for this?) CHINA!

( It's

true, look it up...) And the poor

consumer got saddled with even more taxes and debt that they cannot afford.

 

FEDZILLA'S merry men (who promised that people making less than $250,000. would pay

" not one red cent more in taxes " ) will

make millions in new tax revenues after convincing Joe Consumer that he was

getting $4500 in " free " money from the " government . " In fact, Joe was giving away his

$3500 car and paying an additional $3350 for the privilege.

If

you find errors in this math, please let me know... being a simple guy, I'm always willing to learn

new things; and if you took " advantage " of the Clunkers deal, I have

some swamp land down in Florida

that's for sale...

 

And remember, these are

the same Einsteins who want to take control of our health care system.

Hold on to your wallet!!

 

 

 

 

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