Another Obama program fail? Cash for Clunkers fails to stop increase in average age of America car

[dcarrigg]

Re: Another Obama program fail? Cash for Clunkers fails to stop increase in average age of America car

I can vouch for the higher price of used cars. I bought a car last spring and the salesman asked me what I wanted for my trade. Normally I'd tell him to just make an offer but instead just threw out a high number I thought they'd never go for. He came back in a few minutes and offered me $100 MORE than I asked for. And I got a great price on the new car so it wasn't that either. They really wanted my used vehicle and I had told him I usually don't trade but sell my cars myself. I'm sure they knew they could sell it to some "poor" person for more. So yes, this probably only hurt the poor.

Then there is vehicle use and excise tax at the state and local levels, which has at least anecdotally jumped since the recession. Personally I have seen my old beater sedan go from exempt from local excise tax to $60/$1,000 annually based on mint NADA value on a vehicle model with every option - double what the car's truly worth given the wear and milage - about $800 per year which is almost exactly the cost of my insurance policy.

Why would I go out and buy a newer used car for $12,000 when it will cost $850 in sales tax on top of $1,600 per year in excise tax (because they'll inevitably value it at over $20k)?

It makes putting in the old rebuilt tranny seem worthwhile.

I know that they're locality-based, but sales tax has jumped in IL and MA, while excise has blown up in municipalities of ME, IN, WA, and MN to name a few states I know about. I've yet to see a good study on the matter, however.