Overhaulin' - Is the "Cash for Clunkers" plan a ploy to get people to take out car loans they can't afford?

Is the "Cash for Clunkers" plan a ploy to get people to take out car loans they can't afford?

If you have an older car which works perfectly fine, even if it's not the most fuel efficient, will putting $4500 towards a new car a good idea? Will it sucker people into taking out new car loans because of this unbelievable carrot dangling in front of them?

Public Comments

I hadn't thought about it, that's an interesting point.
Actually, no. If you want to bring in your car/clunker, and take the $4,500 you can. You either take the 4,500, or you use it toward a trade in.
it could, but i imagine the lenders will be more strict about who they lend too, and I would hope that borrowers wouldn't try to go after a car they couldn't afford
This sales gimmick has been going on for years now, push, pull or drag it
No, you don't have to get a new car with the money they give you, and if you like the car you have you don't have to trade it in. It does give people a incentive to get a more fuel efficient car which will save them money in the long run, but they don't have to. Hell, maybe they'll spend the money on a new bike, and come out ahead.
i love my clunker, and i'm not that stupid.
Yes next foreclosures will be replaced with repossessions.
Actually it screws over the poor. The cars traded in will be recycled leaving no parts for older vehicles therefor increasing the cost of parts for the poor. Obama giving $4,500 for a $100 car, no wonder GM failed under Obamas leadership.
Some one has to be dumb enough to give them a loan in the first place. I just don't see that happening. If you do find that idiot come back and let us all know.
Why do conservatives have to make everything into a goddamned conspiracy?
Well, if you know you can't afford a car loan, then you should be responsible enough not to get one. I think this program is a great way for people who really need a new car to get an amazing discount of a new more fuel efficient car that will save them even more money in the long run. http://www.mahalo.com/ford-cash-for-clunkers