I've done some research across the Internet and gathered a list of Pros and Cons regarding the "Cash For Clunkers" program. I made a list for the individual who's considering buying a car through the program, and also a list for the "Collective Soul", for us to consider the overall impact in the universe, as described in this article.
So far the Pros and Cons add up to this: Individual: 4-Pro, 6-Con. Collective Soul: 6-Pro, 12-Con.
1. $ 4,500 + other incentives you may be able to save a lot of money on a new car purchase, if you push for more incentives just just the $ 4,500.
2. Less Gas. You could save a lot of money at the pump.
3. Cut down on repair costs.
4. Environment – your driving will cause less pollution.
1. Insurance – it usually costs more to insure a new car.
2. New Debt – it is wise to go into more debt in your financial situation?
3. Wasted parts – your old car will be destroyed. It's questionable whether or not some of the parts will be recycled.
4. Value added to your old clunker. The used car market may heat up due to decreased supply. It's possible that your used car may be worth more than the voucher after the trickle-down of this Cash for Clunkers program.
5. More gas. You might be inclined to drive more knowing that your car gets better gas mileage.
6. Comfort Zone. You KNOW your old car. And you know what repairs you've done to it and what's likely to go wrong.
FOR THE COLLECTIVE SOUL:
1. Increases sales at auto dealers.
2. Surge in new-car sales to consumers who would not otherwise purchase at this time. For the upper and middle income people with good enough credit to get a car loan, gives them a down payment.
3. Old vehicles are typically less fuel-efficient than their modern counterparts, so removing them from the road and replacing them with newer cars would likely decrease individual owners' and the nation's consumption of oil.
4. Old vehicles typically do not run as clean as new vehicles, so removing and replacing them on our roads would likely decrease vehicle exhaust emissions, lessening the impact on the environment.
5. Old vehicles were not held to the same crash and safety standards as new cars are held to and tend to be less safe in an accident. Replacing them with newer vehicles could lead to fewer injuries and fatalities in automobile accidents.
6. Automakers are struggling right now, especially domestic automakers. Providing a financial incentive to buy new cars would likely lead to increased car sales, which would generate revenue for the automakers and help them weather the economic downturn, while stimulating the economy at the same time.
1. Artificial, unsustainable boom in auto sales.
2. Crushing those older running autos makes those parts and vehicles harder to get, and consequentially more expensive.
3. Many …