Wednesday, July 29, 2009

Cash for Clunkers #FAIL

This is a prime example of why the "cash for clunkers" is a bad idea.

From the facebook status of a car salesman, Joe Adams:
Today is a sad day... We need to destroy an 88 BMW 535is 5 speed, mint, with only 80k on it for the cash for clunker program... such a beautiful piece of workmanship should never be destroyed :(

Cash for Clunkers destroys value.


Samay said...

Oh come on, if it was really worth it, the dealer would have offered more than $4500 in trade-in value, and just sold it.

JoeCollins said...

no, It's not worth 4500. here's a FB update from the guy

"It is seriously a sin... the dude trading it is crying lol BUT it just isn't worth 4500 dollars :("

Point is that it's being destroyed, not that it isn't worth 4500.

Samay said...

that's bullshit then. It's a nice car, but if a "beautiful, mint" car isn't worth $4500, then it's not that great of a car, is it?

My shitbox bronco was worth $4K when my parents sold it - what kind of shape is this car really in?

That, or the asshole dealer who loves the car so much should have just given the trade-in value and not used the cash for clunkers program, so it wouldn't have to be destroyed. He's the dick who chose to make the feds pay for the car.

Larry said...

Kelley Blue Book has a mint 89 listed for $3650, so no it wasn't worth the $4500.
BTW, there's a difference between the KBB value and what a car is "worth" since it's worth whatever someone else will pay for it. But the .gov goes on KBB value, not an arbitrary definition of worth.
That's still not a good reason to deliberately destroy a fine piece of machinery.

JoeCollins said...

He's just a salesman, workin' for da man. He didn't have a choice about whether to buy the car or junk it.

Larry has a good point about KBB, which speaks to retail price versus trade-in price.

It's about the destruction. It's the broken windows fallacy. Cash for clunkers is a subsidy for the middle to low-middle class at the expense of distorting the used car market for the poor.