Date:         Fri, 17 Apr 2009 17:05:15 -0500
Reply-To:     joel walker <uncajoel@BELLSOUTH.NET>
Sender:       Vanagon Mailing List <vanagon@gerry.vanagon.com>
From:         joel walker <uncajoel@BELLSOUTH.NET>
Subject:      Re: economic woes and such ..
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all this credit card talk got me to thinking about all this economic
stimulus stuff.

and an idea popped into my head. (hey, it happens!).

suppose, just suppose, that instead of giving money to the car
companies, the government just reimbursed them as they GAVE their
inventory away.

An Alternate Ecomonic Bailout Stimulus Package Deal :)
(bailout to me has always been what you do with a parachute when the
plane is on fire or the wings are falling off. stimulus? well, the
less said, the better).

tell me what you think ...

 1. GM and Chrysler would GIVE away their inventory of cars to
customers.

 2. the government would pay wholesale prices to these companies.
  no paperwork fees or any other sorts of fees would be allowed
  at the dealer.

 3. the customer/recipient would be responsible for all local and
state
  taxes, as well as insurance and licensing costs.

 4. the customer must agree to keep the car for a minimum of three (3)
years.
  it cannot be sold prior to that time.
  it may, however, be traded on another new car during the three
years.

 the idea is, this would reduce the ailing car companies inventories
of unsold cars.
 and could be used in place of some of the 'bailout' money.

 it would help the economy in the following ways:
  a. less gas should be consumed by newer more efficient cars.
(in theory anyway)

  b. less greenhouse emissions should be produced by the newer cars.
(again, in theory)

  c. auto dealers would reap benefits from their service departments
   when these cars need oil changes and other maintenance.

  d. the customers would have more money to spend on other local
economy
   purchases since they are not making car payments.

  e. it might even cause the companies to recall laid-off workers to
build
   more cars for the program, thus giving some relief to the
   workers and to the suppliers to the companies assembly lines.

  f. it would increase the volume of business for auto insurance
companies
   since it is likely that a lot of people who cannot afford an
   auto now would get one under this program. so money needed to bail
out
insurance companies would be less. maybe.

 however, some issues might cause problems:

  i. if the customer already has a car, even an old clunker,
   what do we do in that situation?
   should they be forced to trade it in? or give it to the dealer?
   if so, should certain aged cars be scrapped?
   or should the cars be resold? this might cause a problem with the
   used car dealers becoming overstocked very quickly.
   and with free new cars available, who would want a used car?


anybody got any additional suggestions? other than scrapping the whole
idea. ;)

unca joel