| Cash for Clunker Cars Cons |
| By Credit Federal |
Published
07/29/2009
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Auto Loan
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Why Avoid the Cash for Clunker Cars Program
Think twice before running out to purchase a new auto under the CARS Program. The choices may be between a new car payment each month for several years, higher insurance and license fees, or the maintainance on an existing auto that is paid for, has lower insurance rates and license expenses.
When considering getting a new auto, we often tell ourselves we really need the auto. Sometimes we tell ourselves we deserve it, we need it, or we may just want to keep up with those who already drive a new auto. Whatever the reason, the family budget must be able to pay for the auto and all the higher expenses that go with it.
There are many older autos on the road with 100,000 or 200,000 miles. It is the older ones that leave consumers free from monthly payments. Given that older autos need to be repaired from time to time, those costs may not equal the costs of having a new car each year. Keeping an older auto may mean you have more money to spend on other things in life, like family activities, entertainment, hobbies, or vacations and these things are important too.
Consider that a new auto could cost from $350 or more each month for several years. Make sure are ready for these costs. If you can't afford repair bills on your clunker, a monthly car payment could through you into a financial nightmare for several years.
Driving an older auto means there could be break downs from time to time. Having a cell phone available when traveling could help if this happens. Even new cars can break down or need repairs. When an auto was purchased new and it has been maintained, it could last a good 200,000 miles and leave the famly budget void of monthly auto payments.
Consumers who don't have to worry about monthly car payments and the extra expenses, can benefit from the Cash for Clunkers program. If the dealership offers other incentives they may save even more money on a new auto. For those consumers who are struggling financially, this deal may not be the best choice.
When money must be rationed from paycheck to paycheck, bills usually get further behind. Even if you don't have a budget but find yourself short of money each month, consider passing on this deal. The CARS or Cash for Clunkers Program is at participating dealerships and it has certain requirements.
Whether you decide to use the government cash for clunker cars program or not, apply online for free auto loan quotes to get the best financing deal.
Other articles why the government should not try to regulate the credit industry:
Government Legit Credit for Bad Credit People
Government Credit Card Control Dooms Rewards
Government Loan Modification SNAFU
Government Fannie Freddie Mortgages
After reviewing how the government is destroying consumer credit, contact your state's legislatures and demand that the government discontinue attempting to regulate the credit industry.
Search government grants and submit online applications. Learn about government debt relief grants.
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