Comment Re:Won't Help Big Three (Score 3, Insightful) 740
Yep exactly, 4 vouchers means 4 scrapped cars. He almost had the point, but got caught up in thinking the cars could be resold. A, B, and C could go out and buy used cars which may not be much better on fuel, and A buys new. But thats 3 used cars being scrapped, and 3 current market used being purchased. It IS good economics though because its ridding the market of used cars. If there are 3 million people driving used cars, and 1 million used cars on the market, all 3 million can't use the voucher on a used car obviously.
Now I have no clue of the actual numbers or averages, but I cant see this being bad. Even if everyone goes out and buys a used car with their vouchers you are still ridding the market of their previous used cars, and there is a good chance some would(or would have) to get a newer car. If you think of it, the only people that will go after the vouchers are people that will profit from it. For example they can get more money from the vouchers than selling the car. This means you will be getting rid of very low value cars which are most likely the bottom of the barrel for fuel usage (excluding vintage cars).
Anyways going back to the GP if you want to keep that example it would be A uses a voucher and buys off B, who in turns upgrades and buys off C, which pushes D to buy a new car. That would be 1 voucher for 2500-4500, and 1 car being scrapped, with 1 new car sale.
Now I have no clue of the actual numbers or averages, but I cant see this being bad. Even if everyone goes out and buys a used car with their vouchers you are still ridding the market of their previous used cars, and there is a good chance some would(or would have) to get a newer car. If you think of it, the only people that will go after the vouchers are people that will profit from it. For example they can get more money from the vouchers than selling the car. This means you will be getting rid of very low value cars which are most likely the bottom of the barrel for fuel usage (excluding vintage cars).
Anyways going back to the GP if you want to keep that example it would be A uses a voucher and buys off B, who in turns upgrades and buys off C, which pushes D to buy a new car. That would be 1 voucher for 2500-4500, and 1 car being scrapped, with 1 new car sale.