http://atlasshrugs2000.typepad.com/atlas_shrugs/2009/10/action-alert-obama-to-cede-us-sovereignty-in-december.html

Martin O’Connor

http://smallbusinessdesigncenter.com

Martin O’Connor

http://smallbusinessdesigncenter.com

I always hate when you think you have looked up the value of your trade and then walk out with this book and come up with something a couple thousand less…

Jen Battaglino

The Harwood Group – Tinnitus, Chronic Illness, Fears, and Anxiety

Greg Dougall, Literary Agent

I changed a lot of the wording.

By the way I read in a source I think reliable that not one dealer got the rebate money from the government that they discounted to the buyer.
In other words they took the discount as a loss.

Have you heard anything about this?
———————————————
IS THIS A GOOD DEAL OR WHAT?

You know that cash for clunkers deal Uncle Sam offered us. What’s your opinion on this?

If you traded in a “clunker” car worth $3500, you get $4500 off for a slight of hand “savings” of $1000.

But let’s read the small print, between the lines or whatever we want to call it.

You have to pay income taxes, however, on the $4500 next April 15th (something the auto dealer didn’t tell you). For those of you in the 30% tax bracket, you will pay $1350 on that $4500.

So, rather than save $1000, you actually pay an extra $350 to Uncle. In addition, you traded in a car that was most likely paid for, running and serviceable for several more years. Now you have 4 or 5 years of payments on a car that you did not need and replaced one that was costing you less to run than the payments you will now be making.

But wait, it gets even better: you also got taken by the dealer.

For example, every Ford dealer in LA was selling the Ford Focus with all the options including A/C, auto transmission, power windows, etc for $12,500 the month before the “cash for clunkers” program started.

When “cash for clunkers” started, they stopped discounting them and started selling 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 more that the $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 5 years of interest on the car loan, but lets just stop here.

So who actually made out on the deal? The IRS 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 stupid consumer got saddled with even more debt.

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. PLUS….. all those great cars that was called “clunkers ” weren’t ” clunkers” at all but good to great driving cars and all had to be destroyed by the government rules of this game. The cars could have been given to needy people who could never afford to buy another car or given to a church that helped people when in need. Goes to show you how stupid we people can be if, yes IF we keep following the “pied piper”.

thanks.

Bert (alter ego- Mister P)
MisterP.org/blog