So, Cash for Clunkers has been in our world for a few weeks now and has been super successful for many dealerships.  If you are not familiar with the program, http://www.cars.gov, the website explains all of the requirements in order to capitalize on the program.

 

Here are my thoughts....this was a nice idea by the government to spike business for the car industry.  However, I have a few questions for the elephants and donkeys on capital hill:

1. Will this program last forever?  If not, what happens to sales when CARS runs out of money?  I'll tell you, people will stop rushing into dealership to trade in their vehicles and buy new.
2. How long will it take for you, the government, to pay the dealership this money?  Probably a few months; which means that the revenue/sales that are being logged are done with monopoly money and the headache begins when dealers need to start collecting their cash.
3. So..how is this going to rectify how much domestic auto manufacturers have screwed things up for themselves?  I think there needs to be more programs allowing car companies to fix the problem rather than throwing a bandaid on the whole thing.

And that is today's two cents, and I would love to hear yours.