As the Cash for Clunkers program comes to an end many buyers and dealers feel like they may have been scammed and Obama is that shady car dealer in the bad suit.
Buyers in the Cash for Clunker program are finding out that the Government always gets theirs. Most states charge sales tax on car sales and that 4500 incentive from the government is indeed subject to sales tax. For those who had to struggle to make the numbers work to get a car payment they can afford , now find themselves seriously cash strapped when they go to get their car registered and plated. Others have seriously under-estimated the insurance costs of a new car and find themselves with insurance premiums double or triple what they were paying on their old clunker.
Many Americans will likely have to sacrifice by not buying anything else , meaning recovery in other retail sectors may grind to halt in the 3rd and 4th quarters and Holiday sales may set record lows.
New car dealers who expected the next few months to be very slow at the end of the program have now learned that the IRS considers that amount income meaning dealers expected profits will be down from projections as they must not pay taxes on those rebates as income after extremely slow 1st and 2nd quarters that left many dealers on the brink of bankruptcy. Many former dealers who had turned to used car sales to get by, have had disastrous sales thanks to the cash for clunker program as the used car market has dried up.
Of course , leave it to the ingenuity of American to "turn a sows ear into a silk purse" . Many "in demand" hard to find cars like the Smart Car, BMW Mini and Kia Soul are showing up on Ebay and Craigslist, often selling for near sticker and being shipped to parts of the country where they are in short supply.
If Americans can find a way to cheat the government and make a buck, they will.
No word yet if the Obama administration intends to establish a "snitch site' where you can turn in your neighbor who is selling their new car without ever registering it, or if the Federal Government attorney will subpoena Ebay and Craigslist to provide their financial records to track down those Americans selling those cars who will make a profit by selling them.
How dare Americans be smarter than Obama.