Dave Ramsey on Cash for Clunkers

Financial Guru and radio personality Dave Ramsey the Cash for Clunkers program. He compares it to sub-prime mortgage program that was a major contributor to recession we’ve been experiencing. I also agree that it may put people in cars that should not be buying a new car who normally wouldn’t be able to. Which is much like the sub-mortgages were doing in the housing market.  

Cash for Clunkers was simply a way for broke people to buy cars that they really couldn't afford. – Dave Ramsey

My thought on the matter was that on a personal level it doesn’t make financial sense. Most of the vehicle that were turned in more than likely were already paid off and owned by the drivers. Now they take a new car payment every month. Also new car more than likely takes a hit on value as soon as it’s driven off the lot. Which nullifies the $3500-$4500 discount. The whole program was a bad idea in the first place which had minimal (if any)impact on the environment when you consider the “carbon footprint” of manufacturing a new car to replace the clunker.

It may have been a good deal for those already planning to buy one anyway and could afford it. I’m glad it’s over and now the taxpayers got the bill.

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For Sale: 1984 Porsche 911 3.2 Carrera Cabriolet

This one is a beauty! A well cared for ‘84 Porsche 911 3.2 Carrera Cabriolet. This has been well maintained and has had many upgrades in the past few years. It’s black with burgundy interior with a recently replaced soft top.

This item is being listed on Ebay here and is located in Cumberland, Rhode Island. Why do I show this one? It’s owned by my cousin and I know he’s very meticulous about his cars. See listing for more detailed information. I’d love to see this one go to a nice home.

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Top ten list of vehicles that shouldn’t be traded in for “Cash for Clunkers”

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I have more personal reservations about this popular program. Seems like a whole lot  of money thrown away for minimal effect on the environment. Also as an automotive enthusiast I hate to see vehicles that still have some life left in them utterly destroyed. Engines in these vehicles are destroyed and then crushed. No parts are resold except what’s left after crushing. Forever destroying valuable parts that might have been resold or reused. I compiled a list of vehicles built in the last 25 years that in my opinion should be saved from the scrap heap if possible. I did check out all models hear on the official list of cars eligible for the program. Some models are borderline and only certain engine types are included. Well here we go:

• Chevrolet Corvette 1984- present : Yes the Corvette is on the list. This really should be a no brainer but, you never know. You know some numbnut somewhere is contemplating turning in his 85 ‘Vette. If you know him slap across the face.
• Chevrolet Camaro/Pontiac Firebird (all years) – There are enthusiasts dying for your parts. Just look for the guys with the mullets.
• Buick Grand National 1984-87 : These are collectable and demand will increase with time.
• Ford Mustang (any year)
• Dodge Viper
• Plymouth Prowler
• Porsche – Yes most 911’s qualify for the program.
• Dodge Charger: Yes believe it or not the 6.1 Liter equipped Charger does qualify for the program. Though I believe that most people wouldn’t turn this one in you never know.
• Chevrolet Monte Carlo SS/Oldsmobile Cutlass Supreme 442 (84-87): I love these old g-body’s from GM.
• Chevrolet Impala SS 94-96

I think most people would sensible enough not turn many of these vehicles in list but, you never know. Many of these vehicle’s enjoy a following of enthusiasts that would certainly benefit from these vehicles staying on the road. As many of these vehicles get older there parts (especially body or trim parts) get harder to find.

This is just my personal list. Feel free to add what you think I missed and should be saved from the crusher.

How-To Change tire on 2000 Ford Windstar

My wife asked me to check on one of her tires on her minivan. When I checked it I discovered it was completely flat. Being Sunday with few garages open I decided to change it and put the “donut” spare on until we can take the tire in to be checked and hope fully repaired. I’m just going to go through the steps I went through to change it.

Disclaimer: This is only a demonstration. Please consult your owners manual and use all safety precautions possible.

First step I took was to locate the spare and check the condition. On the Windstar it is located under the vehicle behind the rear bumper. I then consulted the owners manual on how to lower the spare to the ground.

To lower the tire I had to turn a nut located under a plastic cover(near left arrow) with a the lug wrench. This brought up a second question, Where is the jack and lug wrench. It is located in a compartment on the right hand side of the vehicle(near large right hand arrow).

Turn the two knobs and the door will flip open to reveal your jack and lug wrench. Unscrew the hold down bracket to remove them.

I popped open the plastic cover to reveal the nut that lowers the spare.

Attaching the lug wrench I then turned in a counter clockwise direction to lower the tire.

After lowering it to the ground I removed it from the cable. I had to tap on center hole to break it free from the rust and debris.

Before starting on the tire I took some basic precautions like chocking the wheels and applying the handbrake.

Then I popped the center cap off. I loosened the lug nuts first but, left them on.

The owners manual tells me to locate the jack in a notch behind the wheel. Unfortunately the authors of the manual forgot to tell the engineers to put one in. I placed the jack about 6-8 inches behind the wheel and jacked the vehicle up.

Then I removed the lug nuts after raising the vehicle high enough to take the tire off.  With both hands I removed the tire and replaced it with the spare. I replaced the lug nuts and snugged them up before lowering the vehicle.

After lowering to the ground I tightened up the lug nuts again. Then inspected the tire to see if I could find the leak. We’ll be taking it to the shop to have them take a look at it and possibly repair. One must remember that these tires are only temporary should be rode on sparingly.

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Cash for clunkers = Fail

The more I hear about this program the more I don’t like it. Even the name is deceiving because it goes by the mileage of your vehicle not condition it’s in. You could have a true clunker but, if it get’s more than 18 miles per gallon you don’t qualify. If your vehicle is worth more than the allowance you don’t get anything over that amount. Also it creates a demand for parts and used vehicles that are crushed. Many vehicles may have many usable parts that could be reused (RECYCLED). Another thing is that you raise the prices for vehicles in the used vehicle market. How this helps the consumer is beyond me. This video explains a lot of pros and cons of this program:

I’m a believer of that if you squeak out every possible mile out of your vehicle that it’s better than running out buying a new one. For example: You have a vehicle that’s already paid for with no payments but has low mpg and you spend $75 a week on gas. So your monthly expenses run $300. Depending on your local tax laws your probably paying very little or nothing to the government. Now you throw in a a new vehicle which my cut down gas expense to $50 a week now your down to $200 a month. Now you add in a $400 car payment for the next 5 years and your now up to $600 a month. Don’t forget about your local tax collector wants there share in in excise/sales tax every year. One more factor is that now you’ll be driving your nice brand new vehicle more since your now saving money. Let’s go even further now and say you’ll be working more now to make that payment every month which adds more mileage. You feel it’s worth it though because get good mileage and your helping the environment.You keep telling yourself that. Maybe we could factor in the energy and resources expended to manufacture your “new” purchase.

It don’t make sense to me. Now were about approve more money into this program out of our tax dollars. So the cycle continues. Who or what does this program benefit?

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