by Don Hendrix

Created on: October 16, 2009   Last Updated: October 22, 2009

The economy is in a slump. The cash for clunkers is a government program that is designed to help most people in this economy to drive more fuel efficient vehicles. It was suppose kicked up the car business with large amounts of customers who came in and traded in their vehicles. This program is supposed to be designed for citizens that have recently purchased larger vehicles. The problem is that the gas is expensive and the government tried to get the economy going through customers purchasing vehicles on the dead car lots. It was also designed for the U.S. citizens to save money from purchasing less fuel. This is the reason why the call it cash for clunkers. The car deal will give you a cash deal for any gas guzzling vehicle that you own.

The reason that most people praised the cash for clunkers is because most citizen traded their vehicles for cash. The next thing is that most traded for smaller vehicles that allowed them to save money. The next thing is even if the customer owed money on the vehicle it was traded regardless. This is a government issued policy that car dealers were suppose to follow. During this time the dealer could not say anything because this was specifically recommended by the United States Government. The car dealership that I worked for was superiorly hostile when this policy came around. The parking lots were packed with people from different states. It looked like the consumers main objection was to get on any car dealership that had new vehicles. I think that this was a time for most consumers to act and jump on a car deal that was unimaginable.

The people that criticized it were mostly car dealers. This happened because the cars that were sold during the cash for clunkers were not paid no time. This left the car dealers unpaid with money owed to them. Most car dealers are still waiting on the funds that the government owe from cash for clunkers. Some citizens criticized it because some have their vehicles paid in full and most are not going to trade no matter what. Some citizens thought it was a scheme to put them into more debt. I think during this time citizens should have taken advantage of the situation. Cash for clunkers also left most car salesmen with low commissions. On new vehicles the commission was only 100 dollars per vehicle.

The original goals was to help this economy. At this moment in the year 2009 it is in a serious slump. The problem with the car dealer is that the business only lasted for a short while. This situation put most dealers in a upside down bind. It is like borrowing money from a bank that really isn't there. The statement is cash for clunkers. The question is how is the dealer going to give every customer cash for the trade in of their vehicles. This moment left large amount of citizens with brand new cars. But there are some situations where I have read that some dealers increased the interest rates on most vehicles that left most customers unsatisfied. Some citizens say that the vehicles that they purchased are double the price.

I think that cash for clunkers did meet its expectations due to the simple fact that it helped most Americans out. Because some have huge gas guzzling vehicles that were recently purchased and they did not have any choice to trade it in because they owed so much. It was also good because clunkers means a large vehicle that consumes large amounts of gas. So this meant that any customer that had any old vehicle no matter make or model, it could be traded. I worked at a dealership during this time and most citizens were bring worthless antiques in and trading them for brand new fuel efficient vehicles.

This is a cash for clunkers link http://www.oaoa.com/news/cash-34876-clunkers-.html

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