Ahh, Congress to the rescue. Pulling out the old credit card so's the voters can keep on claiming their 'free money' at the auto dealership. Warms the heart, unless you meditate on the fact that this money has been borrowed from our children and grandchildren. But, just don't think about it, and it'll all be ok.
It's the culture of the outstretched hand, each hand reaching for the mythical something for nothing.
OldSouth meditated about his clunker, which he drove to the golf course today:
Lessee--I'm supposed to be encouraged to drive my perfectly fine 2001 pickup, long ago paid for, with a great engine and trannie, to a new car dealer and claim my 'cash' for my 'clunker'.
They apply some free money from Uncle Sam to the purchase of a new vehicle, which will have to be a pickup, 'cuz I need a pickup. Let's say I bring another 5500 in cash to the table, for good measure.
That's 10k toward the purchase of my new pickup.
I have to take on about 20k in debt to complete the deal, to get as good a truck as the one I have.
My credit rating goes down as a result, and 20k in debt appears on my financial statement.
I pay state taxes of several thousand on the purchase.
My insurance payments at least double, even with my perfect driving record.
I pay interest on the loan, while the 'asset' behind the loan begins its cliff dive. I wouldn't be able to sell or trade this truck for 20k within six months, but I am legally obligated for the full balance of the loan.
What's that smell? Oh, it's my calculator in my briefcase, emitting smoke and sparks.
Or, I could spend about 3 to 5k, and get the old pickup repainted, keep my insurance payments(which actually are declining a bit every year), forget about paying the state a bunch of sales tax, and keep driving my truck for five more years--trash to the landfill, mulch to the garden, clubs to the golf course.
Gosh, what should I do???
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