As some of you know, my wife and I are the owners of JealousBrother.com. I only mention that because we made a decision when we embarked on the journey of starting a website/company. We decided we could do without newer vehicles so we could afford the cost of running a major website. Personally I have no problem driving an older car and actually enjoy working on them. What I don’t enjoy is paying more for parts and having a difficult time finding parts. We have two vehicles, a 95 Honda Civic (36 mpg) with 282,000 miles and a 94 Honda Civic (35 mpg) with 341,000 miles.

What do you think of the “Cash for Clunkers” program? Is it a great idea or just another example of Government Waste

When it comes to Honda’s I can fix just about anything on them. I just got done doing an engine swap on my Civic where I purchased a used Japanese engine from an engine importing company for $800. My reasoning for mentioning this is because there are so many different companies and industries that are being affected by this waste of US tax dollars. There are unarguably fewer used/older vehicles on the road now due to the “Cash for Clunkers” program which will have a staggering affect on parts suppliers, used car lots, engine importers, auto recyclers, auto parts stores, and middle-moderate-low income households who can’t afford to buy new cars.

I also sit and think about the irony of the program as well as the hypocrisy. The irony of course being that the group of people it’s going to affect the most is the low income. The hypocrisy being the destruction of perfectly good vehicles. I wonder what the average carbon footprint of manufacturing a vehicle is? Those vehicles could have supplied discount parts to thousands of low income people who go to auto recyclers like U-Pullit or an affordable used car for someone who couldn’t afford a brand new one. To give an idea of the money you can save by purchasing parts from auto recyclers: Example: A new Transmission can cost upwards of 3 to 4 thousand dollars when you can find used transmissions for anywhere between $150 to $350 at a recycler.

Yet another ridiculous result of this program is debt. One of the biggest driving forces behind the economic crash the US encountered was Americans taking on too much debt. So what does the government do? They encourage people to go into debt up to their eyeballs (So tax payers go into debt to supply the tax credits and they go into debt to purchase the vehicles). It’s one thing to go into debt to start a business which has the potential of bringing a serious return on the investment but it’s another thing entirely to go into debt on something that is going to do nothing but drop in value. I wonder how many of the people taking on these auto loans will end up in default due to job losses or the inability to pay the large car or insurance payments?

You don’t have to take my word for it, Let’s see what Peter Schiff has to say about it:

So who is Peter Schiff and why should you listen to what he has to say? Watch this video and you’ll see why.

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  • vuible You Should Probably Listen to What This Guy Has to Say   Peter Schiff on Cash for Clunker Failure
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