Thousands of people who leased cars last year as part of the Cash for Clunkers program are having second thoughts and are trying to get out of their leases, reports LeaseTrader.com.Greed drove people to make these deals. They're getting what they deserve.
The program provided up to a $4,500 rebate if a person signed at least a five-year lease for their car.
A year later, that money has long been spent and people realize they are stuck with the car for four more years, says John Sternal, LeaseTrader.com spokesman.
"I think it's Cash for Clunkers remorse," Sternal says, whose company helps hook up people who want to trade out of their leases with those looking for a lease.
Some drivers want out of the lease for financial reasons but for others it's just not wanting the car.
Sternal notes that a five-year car lease is a really bad deal for most people who usually lease a car because they want to drive the latest model.
He says it will be very difficult for Cash for Clunkers lessees to trade a lease with four or more years left on it because most traders want a shorter lease, he says.
The only other choice is to break the lease, but then the lessee must immediately pay the remaining payments, which often amounts to more than $10,000.
He says the issue in status-conscious Southern Californians is not so much about the money, but the car.
"They woke up last year and saw the Cash for Clunkers program and thought they they could help the environment and the bunnies and the trees and got smaller, environmentally-friendly cars," Sternal says. "Now they look at that car and think about the really nice car they used to have and think 'I want something roomier, more luxurious. This contract is bad and I'm not in love.'"
Sternal says the company started getting calls about trading Cash for Clunkers leases in May and now is getting "several hundred" calls a week.
Wednesday, August 04, 2010
Cash for Clunkers Remorse
Do ANY government programs turn out well?
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2 comments:
Taking money from The Won can get you in trouble.
Smart people knew that.
W.C. Fields said it: You can't cheat an honest man.
This is so cool. I have to sit back and laugh at all these fools who thought they were going to get a free ride at everyone else's expense. Payday has already arrived for a lot of them and in 4 more years most of these vehicles which they have will also be a clunker.
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