cash for clunkers

[enzo1]

Infographic Proves Cash For Clunkers Great For Japanese - Carpocalypse - Jalopnik

[speedracing944]

Looks like the Korea won big on the deal as well. Hyundai has come a long way.

Speedy

[enzo1]

sure did, had to go back for another look!

[m21sniper]

C4C has all but destroyed the local used car industry in my area. Dozens and dozens of dealerships in my area alone went out of business as a result.

[Scott R]

Originally Posted by m21sniper

C4C has all but destroyed the local used car industry in my area. Dozens and dozens of dealerships in my area alone went out of business as a result.

Yes, and no. I've said this before but my brother is a dealer, and I'm a partner in that dealership. C4C has made us a good amount of money, however not in how the gov' intended.

In December we sold about a dozen Land Rover's all reconditioned with very cheap C4C junked parts. Same with BMW's, mostly needing cosmetics and engine parts. Which even though the engine is destroyed, everything else is still good. Things like fuel injectors, mass air flow sensors, all the nickle and dime items we normally need.

Now it gets better, C4C loans are now coming due and people can't pay. So we now sell them a nice certi-fit rebuilt Honda for "buy here, pay here" at 45% interest. I used to lose sleep over this, but we are repossessing and selling the same cars over and over again to the same people.

If people can't learn that handouts aren't free, well then I guess I'm going to take advantage of them. We had a guy on Wednesday that had his 2008 Suzuki C4C car repoed and he left in a 92' Mustang GT that we had.

The Mustang GT cost me $450 at the impound auction, another $30 in title work, call it another $50 in gas and washing. First payment and down payment were $750. I don't even care if he makes a second payment. I would rather send the wrecker for it and sell it again.

It's sad but we are looking to buy the check cashing place next door just to be able to finance cash for people needing to make the down payment. We figure that %40 on the cash loan, and the 45% interest is a win win scenario for us.

I want to feel bad about this, but people keep doing it. I'm not holding a gun to their heads.

[m21sniper]

Many previous customers went ahead and bought new cars. Very few were shopping used cars during C4C.

Now, after all those cars were destroyed you have hundreds of thousands fewer "cheap" cars in circulation. That means higher auction prices, and cheaper repair parts- making it more economical for people to hold onto their old car instead of buying a newer used car with an even more inflated price. Toss in the horrific recession on top of it, and you had even lower foot traffic in used car lots.

That all translates into smaller profit margins and lower volume.

Very few in the used car business (around here) do the level of reconditioning you are describing. Or rather, do not do it on a large scale. A few units a month might be thorough "rebuilds", but most are auction cars that need minor repairs or paint work.

There are dozens of empty used car lots in Philly that just a couple years ago were very profitable dealerships. They were barely holding on after the economy tanked. To top it off, business expenses in Philly are extremely high.

C4C was just too much for these dealerships to handle when combined with the recession.