Sunday, August 16, 2009

Cash for clunkers ... think about calling a car a clunker

Well, the 'Cash For Clunkers' program on the surface seems like an overwhelming success. The auto industry is again selling cars, but is this the total answer to all of the problems of the car industry? Probably not.

The average working Joe can't afford a brand new car anymore, and in the future as the price of cars continues to climb, the difference will still be whether or not someone has the down payment or making the salary required to pay for a vehicle that keeps raising in cost.

The cost of living is not keeping up with salary, and there lies the problem. Unless you strike it rich, or get into a position where you start to make a lot more money, you're still not going to be able to take on a 400-500 dollar a month car payment, which is what the car or truck in the $35,000 price range costs to have.

What exactly is a 'clunker' is that to say that this car shouldn't have been sold in the first place? That is what this all comes down to, is the car your buying today going to be tomorrow's clunker?

No comments: