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

[patrick0101 at gmail.com]

Although this might be funny, it is mostly false.

http://www.snopes.com/politics/gasoline/clunkers.asp

Please keep messages to this list on topic.


On Fri, Oct 2, 2009 at 2:25 PM, PREMIUM-USA <pusa411 at gmail.com> wrote:

>
>  *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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>
>
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