[Oeva-list] I think the list would enjoy this.. Please list..

[PREMIUM-USA]

*From a real "Car Guy" out in **Los Angeles** , CA** .*
*______________________________________________________________*
*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* here 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:            $1350 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?  FEDZILLA 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.  Manufacturers got to dump lots of
cars they could not give away the month before.  Lots of good or repairable
used cars got taken off the market, crushed and sold as scrap metal to (ready
for this?) CHINA !  (Look it up...) And the poor consumer got saddled with
even more 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.   Chicago politics gone
global...with an agenda.

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!!*



THX..
            Daniel T "Bubba" Conway

Premium-EV
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