Alternate Route

Oct 25, 2009 - Terminal Do-Goodness

From the TimesArgus.com

Cash for Clunkers put cash in the pockets of new car dealers this summer but left used car dealers scrambling to find pre-owned cars and trucks to sell.

"The problem is we have a demand when we have no supply," said Kevin Smith of Springfield Auto Mart. He said his inventory of used vehicles is down 50 percent from normal levels.

The federal Cash for Clunkers program took older gas guzzling vehicles off the road, offering buyers $3,500 to $4,000 as an incentive to turn in their old vehicles for new, fuel-efficient ones.

The $3 billion program was a success, taking 700,000 vehicles off the road. However, many of those older cars would have wound up on used car lots.

Marilyn Miller, executive director of the Vermont Automobile Dealers Association, said the downside of the Cash for Clunkers programs is that used cars dealers are having trouble getting their hands on good used vehicles.

The geniuses who thought up Cash for Clunkers didn't think of this unintended consequence either? This is what happens when you try to do something that feels good to "help people". Kind of like when the terminal do-gooder-in-chief signed a bill to restrict interest rate increases from credit card companies. Only problem is he gave them nine months to comply and the letters jacking interest rates before they're restircted are flying all over the place. But hey, that interest rate on my charge card tripling to 29.99% isn't what you meant to happen, right? Keep on paving that road with good intentions and you know where we'll wind up.

Please stop trying to help me Mr. President. You're apparently not any good at it.

6:28 am | Categories: commentary Permalink | Alert Administrator

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