Borque's plan to crush your next car

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At this stage I'd rate this one as a rumor although on a scale of one to ten for rumors being likely to turn out right I'd rate this one a 9.5 or a ten, the source is very good.

Another caveat: this only affects normal less-than-wealthy kinds of people; if you're a rich old-money type republican or a democrat fat-cat like Algor making millions on global warming scams and buy all of your vehicles new, you are not affected.

The rumor is that Borque Oinquebama and his merry crew are planning to include even used Accords and Civics in their crush-a-guzzler scheme, meaning that the next time you go to buy a used car, you will have to outbid the govt. crushing machine which is bidding something like $4G USD for essentially ALL used cars, and using YOUR tax dollars to make those bids.

In fact, unless you have relatives who buy and sell used cars at the big auctions like the one up Farmerman's way at Manheim, the situation is even worse. That says that the next time you go to buy a car from Carmax or whatever, THEY will have had to outbid the crusher apriori, and the price to YOU will reflect that, i.e. you'll be paying two or three grand more than you would have otherwise for the same car.

I would GUESS (pure guess, not part of the rumor) that part of the motivation for Borque and his pals here is to avoid having conservatives and pubbies do the same thing with GM (now Government Motors) that they did with Smith/Wesson when that English company which bought SW in the 90s immediately caved to one of Slick's faux gun-control schemes. The idea is probably that if you eliminate 60% of the trade in used cars, then nobody with new cars to sell will be without customers.

The flaw in Borque's GM plan of course is that the underclass and his voting blocks do not drive the new car market.

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I don't have a source for this just yet...

What I'm hearing is that the senate took a vote on the idea of giving some of these cars to people in need of cars (rather than destroying them), and with the exception of Web of Virginia, the dems all voted against the idea.

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@gungasnake,

gungasnaKKKe wrote:

At this stage I'd rate this one as a rumor although on a scale of one to ten for rumors being likely to turn out right I'd rate this one a 9.5 or a ten, the source is very good.

And I'd rate your ability to rate rumors on their potential truthfullness at 1.2.

gungasnaKKKe wrote:

In fact, unless you have relatives who buy and sell used cars at the big auctions like the one up Farmerman's way at Manheim, the situation is even worse. That says that the next time you go to buy a car from Carmax or whatever, THEY will have had to outbid the crusher apriori, and the price to YOU will reflect that, i.e. you'll be paying two or three grand more than you would have otherwise for the same car.

This is such a weird argument it must have come from the lunatic conservative fringe mainstream. I first heard it in this clip, where Fox News anchor Trace Gallagher suggested that the "cash for clunkers" program would do nothing except drive up the price of used cars. If it was on Fox News, I concluded, then this must be an official Republican talking point -- and now that gungasnaKKKe has repeated it, I reckon that makes it official.

I guess the thinking goes like this: the "cash for clunkers" program requires that the car dealers destroy the trade-ins. That means those cars never enter the used car market, which means higher prices for the remaining used cars.

The problem, though, is that this focuses only on the supply side of the equation. Prices are determined by both supply and demand. Every junked clunker represents one less used car, but it also represents one less buyer potentially in the market for a used car. If supply and demand both fall at about the same rate, then prices should remain relatively stable (all other things being equal). Given that this is the Republicans we're talking about, however, it shouldn't come as a surprise that they don't grasp this fundamental point about economics.

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@joefromchicago,

Quote:

I first heard it in this clip, where Fox News anchor Trace Gallagher suggested that the "cash for clunkers" program would do nothing except drive up the price of used cars.

Except that cash for clunkers doesn't accept all used cars but only those in a certain range, they have to have gas mileage of 18 combined or less and have to be worth less than the $3500 - 4500 in the used market.

That means it only affects a very limited market. I don't know of too many people that prefer cars that get 16mpg and cost less than $4000. If you are going to get a used car, why would you get something with that kind of gas mileage and in that shape? There is already a huge glut of used SUVs from last year when gas went over $3 a gallon. The fact that ones in worse shape aren't entering the used market won't really make much of a difference.

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I was over at the Fredericksburg Va. auction last Thursday, and the lot was halfway empty; I've never heard of that happening before.

Then again, aside from killing the used car business, there's the question of what this caper has done to charities...

http://www.freedomslighthouse.com/2009/08/people-reneging-on-car-donations-to.html

Quote:

Here is a video report about the impact the Government give-away program "Cash for Clunkers" is having on both charities and the Used Car Business. It seems many people who had committed to give an old car to a charity as a donation are reneging on their decision and opting to take the government cash instead....

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Here's a scene showing a fairly new Volvo being destroyed:

http://www.youtube.com/watch?v=waj2KrKYTZo

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@joefromchicago,

Quote:

The problem, though, is that this focuses only on the supply side of the equation. Prices are determined by both supply and demand. Every junked clunker represents one less used car, but it also represents one less buyer potentially in the market for a used car.....

By the same (fucked) logic I should be able to bomb out all American grocery stores and eliminate the basic human need for food altogether, thus freeing up all of the energy and money our nation expends producing foodstuffs for other purposes...

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@gungasnake,

gungasnaKKKe wrote:

Quote:
The problem, though, is that this focuses only on the supply side of the equation. Prices are determined by both supply and demand. Every junked clunker represents one less used car, but it also represents one less buyer potentially in the market for a used car.....

By the same (fucked) logic I should be able to bomb out all American grocery stores and eliminate the basic human need for food altogether, thus freeing up all of the energy and money our nation expends producing foodstuffs for other purposes...

Good luck with that.

gungasnaKKKe wrote:

Why do you think Jean Chrétien is an idiot?

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