Ok. Now let’s fix your numbers a little. Let’s assume that you’re Joe and Jane Schmoe… you make 60K a year combined and you have a 2002 Chevy 1500 with a V8. You can get 8K on a trade in, plus now you’re getting $4,500. Now you’ve got $12K you can put down on a new Colorado. $5,000 of free money to buy a $15,000 vehicle is like getting 33% of sticker. It’s not going to make EVERYONE run out and trade in their car, but it will be a huge benefit to anyone that is already thinking about getting a new car.
i see the point ur making but look at it this way… lets tempt people currently without a car payment into buying a new car and goin into debt again… maybe it will tempt people into buying something they really cant afford… isnt that what happend with the housing market? tempted people into buying houses they really couldn;t afford.
You didn’t really pay attention to anything I wrote, did you?