People lost their homes due to foreclosures,next will be their cars.The cash for clunkers bill made many people take on car payments they can't afford ,or won't be able to afford soon. Food and other bills going up and more lay offs .Most people drove clunkers because they could not afford a new car in the first place.Also, those new cars now getting 40 mpg.Well, in another year or two cars will be getting 135 mpg. Will the taxpayer pay cash for clunkers getting under 100 mpg in 2012 ? Here we go again.
Agreed. Electric cars are a disruptive technology. Detroit is afraid to manufacture vehicles with so few moving parts. An electric is easy to repair if it needs any repair. The small companies will take market share with quality. Detroit never learns. Big Bad Iron is all they know.
You are dead wrong in almost all of your assumptions. People who were driving clunkers were people who were very cautious with their money, they drove older vehicles because they put their money in the bank. The typical CARS buyer has a much higher credit score than typical buyer, and many paid cash. These are for the most part very careful people who just saw a deal that was too good to pass up. They will now drive their new cars for 10 years+ , they do not chase a new shiney car every three years and get buried with payments. Banks did not loosen up the currently tight credit standards to finance these CARS buyers, they did not have to. You are really dreaming if you think that cars will be getting 100+ mpg in a year or two. Maybe in 10 years, but that will be because they will be smaller and lighter, not the same as cars sold today. The Volt mileage claims are bogus, only counts city driving, does not discuss cost and availability of re charge of battery, etc. A Volt driving on a trip of a few hundred miles in more typical mixed driving will not get that kind of mileage, and even if it did, who really wants a $40K car ( would be much more if not subsidized by taxpayers ) with very limited use. Most people want to occasionally take a trip more than 100 miles, and Volt loses all advantages in that case and becomes impractical, so now people will need a second car for trips over 100 miles ! That makes no sense at all. You can get 100 mpg right now if you drive a moped, but that is not a replacement for a medium sized car capable of travel more than 100 miles a day.
CORRECT! I am a new car dealer and can attest to the fact that the clunker trades we are seeing are from frugal customers with excellect credit. As a matter of fact, 70% of the deals we have done were CASH BUYERS who borrowed NO money for the purchase. This has been the greatest program ever and some people just don't get it!