: What will "Cash for Clunkers" mean for our RWD Caddies?



mharker
06-14-09, 10:51 PM
Hi members,

Sorry to get all political on y'all. But up here in Canada I'm reading with great interest about the Cash for Clunkers bill.

So... what's going to happen to our already shrinking fleet of RWD Cadillacs? On a quick national autotrader.com search, I found about 1500 1981-2001 (both FWD and RWD) Cadillacs listed for under $4500.

So does that mean these will all end up being crushed? Either the owners will trade them in on new cars for the credit... or other people who are in market for new cars will buy them just to trade in for the credit? (I gather there must be some restriction that you need to own the "clunker" for a little while before you can get the credit?)

If that's the case there won't be many RWD Caddies left except for the cherries. I guess it makes the hobby cars worth more, which will make some owners happy, but then again it will be much harder to acquire these cars.

I'm all for government "stimulus" putting the money right into consumers' pockets so I like the credit concept. I'm just wondering what will happen to all the old Caddies and Buicks I love so much.

DopeStar 156
06-15-09, 12:37 AM
My take is this....

If someone has one of these and likes it, I'm sure the crusher idea has entered their mind and would then opt to not trade it in. If someone was looking to do this I would think if the bill wasn't created, they'd just end up junking said car anyway. I hear the condition has to be specific so no "parts car" will work. In my mind I would think private party sale prices will just go up making the cars worth more money on the second hand market......

http://www.cashforclunkersfacts.com/?gclid=CJfO_dmsi5sCFQxM5QodciDzqQ

It looks like it's gonna be difficult to get. I think our vintage Cadillac market is safe......

jayoldschool
06-15-09, 05:17 PM
It won't do anything. Most people that are selling old Caddies are not selling in order to buy a new car...

sven914
06-15-09, 05:57 PM
They have something like that in California, only offered to large corporations. Basically what happens is that these companies earn "pollution" credits for buying and crushing SUV's and obsolete vehicles. By dong this, the state is more lenient on the company and allows their factories to release more airborne pollutants. Other states offer tax rebates to residents who have their car crushed at a state authorized facility.

Last year, when scrap metal was paying, I personally saw a few nice cars (Cadillacs included) get driven over the scales at the scraps yards. Three weeks ago I saw some douchebag drive a 76 Fleetwood Talisman to a junkyard and try to sell it. He left because they wouldn't give him $250 for it.

jey
06-16-09, 05:54 AM
I feel like people are over-estimating the impact of this bill the way it is currently written. A lot of cars are worth more than $4500. And out of those that are worth less, the reason people own them is because (a) they can't afford anything nicer/don't want to spend money or (b) they have some special interest in old cars. It doesn't seem to me $4500 is enough to get these people out to buy a new car - you can't buy a new car for $4500 - if I traded in my Fleetwood I would have to find at least another 10k and even then I've "upgraded" to an economy car.

My Fleetwood isn't going anywhere, but if this does have a big effect I worry about parts becoming a lot more difficult to find. Good time to take the Fleetwood out of daily driver duty.

cadillac_al
06-16-09, 08:52 AM
$4500 will just about cover the depreciation you will incur when you drive the new car off the lot. If it's about saving money, most frugal people will buy a car a couple years old and let somebody else take the depreciation hit. I think this feel good legislation will have almost no effect. Last year when steel prices were high I saw a lot of nice cars going to the crusher; even a 60's GTO. Rich people would rather take a couple hundred for a car to have it gone rather than take time to part it out and make a couple grand. I seriously considered buying cars like this to part them out but I already have too much on my plate. $4500 is a good price for an old car so I suppose there will be some nice cars crushed but nobody would pay $4500 for them.

jey
06-16-09, 09:33 PM
Fortunately the bill exludes pre-1984 cars so we lose any serious classics to this.

I do think it's interesting that the goverment is trying to reward my "irresponsible" decision to purchase a gas guzzler. Definitely paid way less than $4500 for the Fleetwood. The more considerate person that bought the Cavalier sitting next to the Fleetwood gets nothing.

sven914
07-31-09, 08:10 PM
According to edmunds.com, only the following RWD's are on the chopping block as acceptable vehicles for trade in for $4500. Everything else would be worth less, so hopefully no one will bite, and will keep their '80's Cadillac.

1990 Cadillac Brougham
1991 Cadillac Brougham
1992 Cadillac Brougham
1993 Cadillac Fleetwood
1994 Cadillac Fleetwood
1995 Cadillac Fleetwood
1996 Cadillac Fleetwood

Stingroo
07-31-09, 08:19 PM
Like I posted in another thread about this, the ENTIRE budget for the bill only has the budget to crush 220-240,000 cars total. It's a really small impact, and in my opinion, a waste of money that our country just doesn't have.

csbuckn
08-01-09, 12:31 AM
I was suprised to turn on the computer to see that the program was halted because the budget was already met. That worries me because the goverment may look at that as ammo to do something bigger. I am glad to see that the only caddies that were eligable were the 90s and up because those ones are some of the more valuable ones that people dont usually get rid of. I just wasnt expecting to see the money go that fast. Now I'm worried about what the gov may do later. I would love to see the stats on what cars were turned in.

Stingroo
08-01-09, 12:36 AM
Well csbuckn, bad news. House and senate both approved another billion for it today.

They may be onto something, unfortunately, because we already know Nobama will sign it.

csbuckn
08-01-09, 12:44 AM
Recover the economy at the expense of cars? I guess I dont have any better ideas

Stingroo
08-01-09, 12:57 AM
Too bad it doesn't recover much when most of the money goes back to Tokyo...

Aron9000
08-01-09, 02:13 AM
Too bad it doesn't recover much when most of the money goes back to Tokyo...

TRUE THAT!!!

I don't think that a ton of our old RWD beasts will be scrapped. They've held their value pretty well over the years, really nice ones still sell for 5-10k, depending on year/options/color. The other thing is that these cars cost very little to maintain and are extremely durable from a mechanical standpoint.

The Cadillacs that will get junked are the FWD Northstar cars. They've depreciated into nothing. Nobody wants to pay $3k to fix a headgasket on a car that is worth 3k, just to replace failed electronic struts for another $1000, then it'll need a transmisson, etc. From a financial standpoint, it makes no sense to keep dumping money into those heaps.

SDCaddyLacky
08-01-09, 07:45 AM
I Second True Dat. For one thing 93-96 Fleetwood's are already in the low production category, and it is true that these cars have held there value for a long time because of it.

having a 5.7 LT1 reliable chevy engine, RWD, longest US car ever made in the 90's, great styling, will always be popular, so I wouldn't expect to see these cars in the junkers anytime soon.

I was lucky to get mine for $3,000, everything works on it, beside the AC.

I have seen a 96 fleet on craigslist selling for $17,000! The guy kinda pimped it out, but still, it shows you how valuable the Fleets still are.

I would never trade this Cad in for anything new! I will keep it forever, because these Caddies have everything you could possibly want. Comfy seats, great power, RWD, size, style, class, you can't get that anymore in cars, especially class and comfortable plush seats:rolleyes:

A major factor on why I bought a 94 Fleet, was because it's classy/youthful looking, yet still modern enough to drive everyday. I didn't want a carburetor Cadillac either combined having an old man status.

Stingroo
08-01-09, 10:04 AM
Correction on my previous statement: only the House has approved the funding, the Senate won't meet until next week. The article I read jumped the gun a bit. :P

But on the current topic: I would hardly consider the Fleetwood "youthful". Maybe much more so than the previous generation, but overall, not much. It sure does have a lot more comfort and character than one of those Scion xtraBoxes they're trying to market to us kids though. :P

CTSV OWNER
08-01-09, 12:47 PM
We had a few vehicles traded in from the clunkers bill. There was a pretty decent looking Mazda B2200 4X4 and a real clean 2000 AWD Chevy Astro I mean CLEAN. It was a shame to see that Astro it was so clean. Others were just rusty clunkers. If any big Caddys come in I'm gonna smack the person up side the head that trades it in.


Dave

Stingroo
08-01-09, 12:57 PM
So far I haven't seen any big RWD's on the scrapping block. I did see a newer Deville though. It was in really nice shape, and I bet a bunch of people on this forum could have used it for parts. But nope, it's garbage now.

Ridiculous.

codewize
08-01-09, 01:55 PM
The whole thing was supposed to be helping the economy and auto makes but unfortunately the government is basically paying everyone to trade in American cars for imports.

If you look closely the bill is actually designed like that.

I don't get this country. Then we throw 2 more billion at it, like our government has 2 billion $

Stingroo
08-01-09, 01:59 PM
Exactly. Hell, we'll be in debt until the end of the world at this rate.

sven914
08-01-09, 02:25 PM
It was in really nice shape, and I bet a bunch of people on this forum could have used it for parts. But nope, it's garbage now.

Ridiculous.

That is another thing I don't agree with about this bill. My car is going to die with me, so in ten, fifteen, or twenty years, when I'm looking to restore her, there will be a lack of usable parts cars. The least they can do is remove the drive train, body panels, chrome, emblems, interior, electronics, and suspension before they crush the cars.

caddeville89
08-01-09, 02:38 PM
Yah, really the only people benfitting from this program is American banks. (You know, those responsible for getting us into much of this mess in the first place...) The program is designed to get people out of their "loan free" cars and back into cars (imports) with a big loan attached. No benefit to any American people, unless you are in the small ruling class of banksters.

You're right, the $4500 probably doesn't even cover the depreciation incurred by driving a new vehicle off the lot. It MIGHT just pay for the interest on the vehicle purchased...maybe.

I am waiting for this program to become "mandatory"...maybe there will be some annual "fee" for having an older, non fuel-efficient (American) car, "forcing" us to trade our decent vehicles in for modern pieces of junk with a nice big bank note attached...with love, of course.

Or maybe not. I hope I'm wrong. You won't see me buying a new car, much less junking my car in order to get a discount on something I don't want in the first place. It doesn't make financial sense.

Stingroo
08-01-09, 02:47 PM
Exactly! It takes cars that are paid off in full, and then requires the people who own them to purchase a new car, giving them a loan. Good for the banks, bad for the buyer.

Did they ever think that, you know, MAYBE the type of person who owns a car that's 10-15 years old does for a reason? I wonder how many people are getting suckered over by that "$4500 promise" into buying a car they can't afford. I'd bet it's a rather large number too.

Bro-Ham
08-01-09, 04:33 PM
The government is not the solution to anything.

Cars of interest I've seen awaiting their deaths at the two local car dealerships I drive by every day:

--a very nice 87-91 Grand Marquis;
--a super clean Roadmaster;
--86 LeSabre that appears far too decent to be junked;
--a lovely looking 97-99 Sedan deVille d'Elegance.

Sad.

Bankers not problem; Libs in congress waayyyyy relaxed lending rules so lax anyone could buy houses.
Acorn intimidated the banks to lend to Losers.
Bush repeatedly warned but Lib media convinced sheep otherwise.
Downfall inevitable - - then happened.
Now the folks who brought this disaster upon us are in 100% power.
No solutions other than government in control of everything.
All the magic government solutions in the world will never solve any problems and never have. We're in 1977-81 all over again.
Social security, medicare, welfare: continuing government invervention failures.
Ignorance is bliss. If you don't know any better you don't do any better.

Now clowns have come up with cash for clunkers.
Get rid of "unacceptable" cars, they say.
So ridiculous in light of the fact that if US businesses were allowed to drill for US oil with the help of US workers we US citizens would be able to fill our large, comortable and safe US cars with US gas.

In the meantime, I'm proud to putt putt putt along in my tropical yellow old man car Cadillac blowing out the heavy carbon from my exhaust and burning up every last drop of gas as quickly as I can get it pumped into my car. My car is the anti-Prius and I'm terrificly proud of it!

Big cars will be in vogue once again as soon as we regain our pride and control of our country.

Stingroo
08-01-09, 04:37 PM
Amen to the last line of your post. Once we stop being so stupid and start USING OUR COUNTRY'S RESOURCES, these cars will be popular again, and everyone will be able to afford to drive them.

What the US does with its oil is downright stupid. It's like looking at Lake Mead and saying nobody can touch that water because it's harmful to the environment for us to use it.

Good luck convincing everyone on the West coast of that one.

Drill Alaska, drill off the coast of Florida. It would stop so much of this nonsense. Wake up people.

SDCaddyLacky
08-01-09, 07:43 PM
I'm not old enough to remember the good ole days, when big cars were the norm.

But I'm getting a sense that the US is staring to become a soft nation, and we are not tolerating the little things anymore. Generally, most people look at big Cadillac's as big boats, or just a waste a space. Whatever happened to people adoring our cars? Whatever happened to the respect that our cars used to get? Now the lame'o in his whack ass 2 footer car Hybrid, is the popular guy :thehand::bigroll:

I don't care what people think anymore, friends and family tell me to stop driving big cars, and I say "Shut up already!" No one will ever push me to drive a small car, I like driving in style, it's who I am. I'm not a flashy guy, but I like the feeling when I pull up to a new Lexus. Because even the owner of that car stares and admires mine, while I'm thinking "Your car is a joke, and you paid how much for it?"

Safety is another concern of mine, if ever I happened to be in accident, I want to know that I'm protected in a serious crash. My Fleetwood reassures me of that. It's big, mostly steel, and I know it will hold up well against just about anything. Driving a small plastic car, is a no no. I don't trust all the safety features either that are in new vehicles. I think we all know what happens to new cars in accidents :bigroll: They all resemble crushed coke cans.

The Gov is trying to make you believe that your old car is junk. My 94 Fleet is not junk, I hope people don't take the bait, your still going to wind up paying for state and local taxes, license fees, a car payment, and worst of all higher car insurance if you buy that new car. Since dealers are desperate to sell, they don't care who they sale to. This can hurt in long run, because there's a higher possibility of repo's in the future. Some folks are dipping into the pudding too fast, and might not realize 6 months from now, they might not be able to afford the monthly payments.

One benefit I see, is how Chrysler is adding another $4500, total of $9,000 for a down payment. That will help offset some cost, and it can make a difference, but the $4500 alone from the Gov, is not worth buying a new car in my own opinion, it's still not enough money.

Some new cars get shitty MPG's, so what's the point? My Fleetwood is rate 18 City 25 Highway, that's about the same gas mileage, if not better than new V6's. I haven't seen the improvements in fuel economy over the years. It's disappointing that with new technology, we average about the same miles per gallon today, as we did 15 years ago.

Stingroo
08-01-09, 08:25 PM
This can hurt in long run, because there's a higher possibility of repo's in the future. Some folks are dipping into the pudding too fast, and might not realize 6 months from now, they might not be able to afford the monthly payments.
I mentioned that in my post before. People just "think" they can afford these cars. "Oh look at me! I have a shiny new car I'm so cool!" What a joke.

Just like the McMansions of a few years ago that were all the rage. Being in Florida, it makes me laugh because now all of these houses people thought they "needed" and "could afford" sit empty.

If people would just stop trying to live outside their means, a lot of the problems would be solved.

CoupedeVille'73
08-02-09, 09:38 AM
The whole thing was supposed to be helping the economy and auto makes but unfortunately the government is basically paying everyone to trade in American cars for imports.

If you look closely the bill is actually designed like that.

I don't get this country. Then we throw 2 more billion at it, like our government has 2 billion $
Well, the same thing happened here in Germany.
Real sad thing. Lots of nice cars got crunched. Happily they took out most of the rare spare parts before doing that.

As far as the Cadillac is concerned, I'd never let her go that way.
She's staying with me as long as we both will live and can afford each other...

codewize
08-02-09, 02:28 PM
You hit the nail right on the head. As Americas we're so greedy it's pathetic. Everyone demands immediate gratification, kids just getting out of school think for some reason they should be making more than their parents and that new cars and nice homes should be easy to obtain.

I don't know who instilled these thoughts or habits in these people but the banks are definitely NOT helping by telling them they can afford this and that.

Our government sucks and this country is heading for a big disaster.



If people would just stop trying to live outside their means, a lot of the problems would be solved.

jey
08-02-09, 06:50 PM
That is another thing I don't agree with about this bill. My car is going to die with me, so in ten, fifteen, or twenty years, when I'm looking to restore her, there will be a lack of usable parts cars. The least they can do is remove the drive train, body panels, chrome, emblems, interior, electronics, and suspension before they crush the cars.

Time to go out and start finding/hoarding parts from the salvage yard. I went to cars.gov and all my usual salvage yards are on the list of authorized scappers - so you will have a shot at these parts before the car is crushed!

Warren_R
08-02-09, 07:11 PM
If the new bill gets signed by Nobama, that will be $3 billion down the drain to subsidize the latest trend in silliness. Spending the same on drilling for more oil in US territory might actually accomplish something -- but of course that would be unthinkable. Idiots.

Stingroo
08-02-09, 08:33 PM
Pretty much yeah. I mean, living in FL makes me laugh at this even more. There is SO MUCH oil off the west coast of our state that we REFUSE to touch. Why? What the heck are we waiting for? Nuclear winter?

It's a total joke. Spend the money usefully.

csbuckn
08-02-09, 08:52 PM
The new GM...Government Motors. Its bad but who do you put the blame on. I say the banks for setting up mortgage loans like they did. I just foreclosed because my two year arm mortgage payments adjusted from 1K a month to 1600 a month, there was a penalty to refi before three years so I let the house go, now I owe about 9K to taxes. Now they decide to put the ball back in the banks hands. I wonder what type of loans people are getting. I guess a smart person could really take advantage of this type of trade in if you knew what you were doing with laon contracts.

Bro-Ham
08-02-09, 09:48 PM
CSBuck, Sorry to hear of your difficulties. You didn't tell us about the loan officer who held a gun to your head forcing you to sign on the dotted line for your mortgage that you weren't aware had an adjustable rate. It's too bad folks can't buy the cars that are traded in on cars for clunkers like they are able to buy cheap foreclosed houses...

Stingroo
08-02-09, 10:39 PM
A little harsh in wording Bro-Ham but absolutely correct. Not to single you out csbuckn, but that's one of the problems that occurred. So many people DIDN'T think of the A in ARM and figured their nice cheap mortgage was forever.

Granted, a 60% increase isn't forecasted either but yeah. I'm glad I'm not at house-buying age at this time. It's a pity to see what the greed did to so many homes.

On the "Government Motors" thing, I really hate that label. The Government doesn't own GM outright, and if they make some solid product in the next few years, won't own them at all. Give it some time folks, they can do it.

Bro-Ham
08-02-09, 11:27 PM
Time to accept responsibility. Buy a house and expect the worse can happen if you agree to an adjustable rate. If you can't afford it then don't buy it. All these crushed cars from cars to clunkers should be sold to help pay for the tremendous expense of this "program" but instead they are being destroyed for "the environment." The whole thing is nuts if you ask me. Taxpayers pay again and again. When the pain gets strong we realize the truth hurts and hopefully wake up and not repeat the same mistake. Too bad getting something for nothing sounds so good when promised by a smooth talking leader who is loose with wasting our tax dollars and tax revenue that hasn't even been created yet.

CTSV OWNER
08-02-09, 11:47 PM
It is a shame to just destroy them. When there are people out there that are driving much worse cars that can't afford cars as nice as the ones being junked. Not to mention losing valuable parts cars.

I had a Mazda RX7 that I sold to a bone yard for decent money. They put it in a container and shipped it out to Brazil. Atleast that way the Government could recoupe some of the money.

Dave

csbuckn
08-03-09, 01:25 AM
Why would a bank put a loan out like that? The only reason to present a first time homebuyer with a new family a two year arm with a three year penalty is to get them on the adjusting arm. You wouldnt expect someone to do something like that, let alone the fact that the real estate agent didnt say anything. I know whos fault it was but the banks put out loans knowing it would slip past people, obviously millions of people went through the same thing. So do you blame the banks for the housing problems or the millions of Americans that foreclosed. These loans caused one of the worst chain reactions in history but you blame it on the homeowner? You must be sittin pretty in the sun bro.

Stingroo
08-03-09, 02:39 AM
Personally, I blame it on the banks and agents who don't explain that to the first time homeowners. So many people were either lied to, or misinformed...

But for every one person who is a true victim, there are 10 more who just went ahead to one-up someone I'm sure.

I can't really comment much on that though, since I'm not in homebuying at all. I hope all works out well for you csbuckn and your family.

Bro-Ham
08-03-09, 07:30 PM
Don't get me wrong, I've made my share of over the top mistakes, many I'll pay for the rest of my life. No one is perfect. That's the beauty of this country. We all have equal freedom to succeed and also to fail. My grandpa always said "don't take any wooden nickels" almost every time I saw him. My Mom always told me to "do your homework." How true it is. In a free country it's up to you to do what is right. Also in a free country a safety net is not guaranteed. When there is an escape hatch it should come at a heavy price since it is your failure. There is plenty of carnage in your wake that you were a part of: your mortgage lender paid a dear price by taking your house back and likely selling it for far less than they gave you to buy it. Real estate agents are broke right now too. You now have a $9 grand tax bill and I'm sure your credit is smoked. Blaming others only makes your problem fester and you'll never learn from it and pick yourself up, dust yourself off, pull yourself up by your bootstraps and get out there and swing the bat to try, try again to succeed knowing you are smarter person from your mistakes. When I make huge mistakes I comfort myself by pulling out the Frank Sinatra CD and listening to "that's life...." A great song and oh so accurate. Smile! :)

cadillac_al
08-04-09, 10:13 AM
Why do you guys deal with banks? They are in business to make profit and that profit comes from the customers. Credit unions aren't profit motivated and they are out to serve their members. My buddy got an adjustable mortgage a few years ago and I kept telling him he was going to get screwed. Well, while mortgage rates and interest rates were coming down, so has his adjustable mortgage. Amazing? No he got his mortgage from a credit union and they aren't trying to screw him.

I went to a large car lot this weekend. They usually have a large wholesale lot out back with some bargains. This weekend there were no bargains. The whole lot was full of cars marked C4C (cash for clunkers). I did see one Broham there with a moonroof. Most of the vehicles looked like they were worth $2-3k anyway. There were some Jeep cherokees and toyota T100's; actually the majority seemed to be 10 year old suv's. I think most people are trading in their kids college vehicle or their second winter vehicle for a new car. I think the average frugal American knows that the best deals are on 3-4 year old garage kept cars after somebody else takes the depreciation hit.

codewize
08-04-09, 11:39 AM
I agree and I think everyone else agrees that the people that got into those mortgages have no money management skills.

When you buy anything with adjustable rates, which I won't, you have to know that this can happen, but people always think well it's good now so it'll stay good. People also always think that in 5 years when the rates go up they'll be making 5 times what we are now so no problem.

Same with credit cards. All my cards are fixed but banks seem to be playing games where they're changing everything to variable rates, but, making them equal to your current fixedrate for now. Every time a bank does that I close the account.

Those loans and those types of lending are specifically targeted at the less fortunate with maybe less than desirable credit or people who want to buy more than they can really afford.

It's pretty cut and dry to me. The banks lured people into spending more than they should with distorted rates. But the borrowers should have known that the rates would change and should have planned fore 16 - 18% then said, can we afford the note at that rate. I think 100% of them would have said no.

A financial advisor once said only buy a car you can afford to pay off in 3 years. The same is true with homes. Never ever go to 30 years. Only buy a home that you can afford to pay off in 20 years. Anything more is more than you can truly afford.

The banks I work with are just fine. My home is financed for 15 years at 4.20% FIXED. My current used car loan is 36 months at 6.1%. I think those are some pretty good rates. You just have to shop around.

Aron9000
08-04-09, 01:48 PM
Financing a used car is kind of a screwy deal to me, especially one that's going to be 20k+. You get raked over the coals on the interest rate on the loan.

There are so many good deals on new cars now days, it makes more sense to me to buy something new at 0% interest with a rebate than to take the gamble with a used car and pay 6-10% interest on the loan.

Paying cash for a used car is still the smartest move if you can swing it. That's what I did.

75sled
08-04-09, 04:22 PM
I read way up in this thread that someone said maybe there wasn't a better solution to this HUGE problem we face as a nation. And that might be so. But the way I see it, and I may be too simple minded, if the gov. had taken that $782 bilion and divided it amongst the approx 250 million citizens of this great nation, can you image the spending power that would have provided a family. That is roughly $3000 per person in your family. I am a family of six. That would have given me about $18000 to catch up on bills, repair or replace autos, maybe put some in savings to help with future issues, and most importantly bought me a 1996 Fleetwood Brougham.... hehehe.

But seriously, I agree to the fact that the good ole USA didn't have $782 billion to start with, but if they were going to try to bring the economy back starting at the top was the wrong way to go. That is like watering an oak tree from the top....yeah some of the water will trickle down and make it's way to the roots, but just think of the effect pouring it all on the roots would have had.

codewize
08-04-09, 06:01 PM
Actually one of the other thing said was never pay cash for a car. Put the cash to work for you somewhere else and you'll come out on top.

That's why you always see big business finance everything on terms. I guess everyone's situation is different but that's the standard rule of thumb.


Financing a used car is kind of a screwy deal to me, especially one that's going to be 20k+. You get raked over the coals on the interest rate on the loan.

There are so many good deals on new cars now days, it makes more sense to me to buy something new at 0% interest with a rebate than to take the gamble with a used car and pay 6-10% interest on the loan.

Paying cash for a used car is still the smartest move if you can swing it. That's what I did.

jey
08-04-09, 06:40 PM
Actually one of the other thing said was never pay cash for a car. Put the cash to work for you somewhere else and you'll come out on top.

That's why you always see big business finance everything on terms. I guess everyone's situation is different but that's the standard rule of thumb.

Put your cash to work for a return greater than the loan interest and you will come out ahead.

If your car loan is for 6% interest, and you put the cash in a 2% interest CD, you were better off paying cash for the car.

But if you can get 0% financing on your car, and then invest the cash to get a good return, you come out ahead. But "0% financing" is never really free - you can almost always get an equivalent, if not better cash back deal and just pay cash.

csbuckn
08-05-09, 10:03 AM
per my internet home page:
"The number one vehicle destroyed under the Cash for Clunkers program, the Transportation Department says, was the Ford Explorer (1998 edition). Number two, the Ford Explorer (1997). Number Three...you guessed it. The '96 model. The top eight, Jalopnik reports, were all SUVs. In fact, they were all various editions of the Ford Explorer and Jeep Grand Cherokee. A pair late ‘90s of minivans, the ‘97 Ford Windstar and '99 Dodge Grand Caravan, round out the top ten"

And I thought cherokees were decent trucks

jey
08-05-09, 03:03 PM
According to LA Times, after consolidating model years, the Top 10 are (not in order I think)


Ford Explorer 2WD and4WD, Ford F-150 2WD and 4WD, Jeep Cherokee and Jeep Grand Cherokee 4WD, Dodge Caravan, Chevy Blazer 4WD, Chevy Silverado 1500 2WD and Ford Windstar.

Top 10 vehicles purchased with Cash for Clunkers:



1. Ford Focus (27-28 mpg)
2. Honda Civic (24-42 mpg)
3. Toyota Corolla (25-30 mpg)
4. Toyota Prius (46 mpg)
5. Ford Escape (20-32 mpg)
6. Toyota Camry (23-34 mpg)
7. Dodge Caliber (22-27 mpg)
8. Hyundai Elantra (26-28 mpg)
9. Honda Fit (29-31 mpg)
10. Chevy Cobalt (25-30 mpg


Well I guess $4500 is enough to finally educate people that you can haul around as much crap with a hatchback as you can with some of these little "mid-sized" SUVs.

theGman
08-05-09, 03:17 PM
The above list means to me that these cars get about 10 mpg roughly more than my '95 or '96 FWB. When you factor in the small size, the BIG payments, and, don't forget the yearly taxes on the new cars plus the initial sales tax, I just don't get it.
A dollar saved on gas is exceeded by the taxes.

jey
08-05-09, 03:45 PM
Yup. But the 98 Ford Explorer gets less than 14-15 mpg - and that's even assuming they've kept up on the maintenance. Trading that old Explorer in is making sense for a lot of people.

csbuckn
08-05-09, 05:08 PM
I would not of thought the F150 would make it on the top cars list.

codewize
08-05-09, 10:05 PM
I wonder if there's a real source for this with more info?

mlj427
08-08-09, 12:49 AM
Last weekend we traded my wifes Grand Caravan 180k miles in and got a Pontiac G6. Between Cash for Clunkers, the rebates and everything we got it almost $9000 off. The same price as a 2 year old used one. This is the only stimulus that has done anything for my family. They should have tried this first to see if it helped the auto industry instead of everything else. The other things have only gone to exectutives not the little guy.

Just my 2 cents worth
Thanks
Mike

Aron9000
08-08-09, 01:18 AM
Last weekend we traded my wifes Grand Caravan 180k miles in and got a Pontiac G6. Between Cash for Clunkers, the rebates and everything we got it almost $9000 off. The same price as a 2 year old used one. This is the only stimulus that has done anything for my family. They should have tried this first to see if it helped the auto industry instead of everything else. The other things have only gone to exectutives not the little guy.

Just my 2 cents worth
Thanks
Mike

If you don't mind me asking, what was the final price out the door? I know they are just giving away those Pontiac G6's. Makes you wonder if they'll be worth more than $5,000 in a couple of years used though.

Stingroo
08-08-09, 02:05 AM
I think they'll still hold their value somewhat. Didn't GM say that you could still take your Pontiac to the other dealerships?

And, what's the Chevy equivalent of a G6? I know a G5 is a Cobalt, but does the G6 even have one?

mlj427
08-08-09, 02:13 AM
The sticker was $22700 before tax,etc we got it for $13300. It's the same as Saturn aura, Chevy malibu, one of the Buicks. Any GM dealer will service it. The value may take a hit but when you get that much off to start with I think it is worth it.
Mike

Stingroo
08-08-09, 02:16 AM
Malibu and G6 are the same? Wow I really need to look at a G6 then, cause last I saw they looked nothing alike. lol

But yeah, the value MAY take a hit, but then again, knowing that it can still be serviced at any GM dealer, it may not.

Plus, if you've got the money, grab a G8 now, cause those are going to be hot in the future I'd bet. Such a GREAT car. It's a shame it didn't get to live on... and it's a shame we don't get another screaming chicken from the Camaro now that Pontiac is deceased. :(

Boy, this poor thread has been pulled in all sorts of directions!

mlj427
08-08-09, 01:44 PM
They don't look alike but under the skin it is suppost to be the same.
Mike