The Cash For Clunkers program has been a huge hit with dealers and has caused a lot of nervous consumers across the line and decide to spend some money. I know several people who have personally participated in the deal, and I believe that it has truly stimulated the economy.
But I am not sure that it is a great deal for the consumer.
The situation creates high demand at the dealership. This can lead to a dealer who is unwilling to negotiate since the consumer is already receiving a rebate. The program has no defined end date (instead the program's web site currently states November 1st or a vague "when the money runs out" deadline that is not measurable by the consumer). This creates an "I have to buy it right now or else I will miss out on a great deal" mentality.
If the vehicle is financed, this "deal" still has the potential to wreak havoc on a person's financial future!
I have seen several deals and NONE of them have "Wowed" me. What about you?