My brother in law is excited about GM's cash for clunkers program but I am having some trouble understanding the logic. I would appreciate it if someone could explain what I am missing.
My focus is not on the Canadian government rebate but the rebate that GM provides. Let's assume that a vehicle costs $40,000 and Gm provides a cash for clunker rebate of $ 3,000 for a net cost of $ 37,000. The value of the clunker to the dealership is likely scrap value so I don't know why I would not be successful if I approached the dealership and just offered $ 37,000 ( forget the cash for clunker rebate ). The dealership would lose the scrap value of the vehicle but they would also avoid all the hassle of dealing and disposing with the wreck.
What am I missing ?
My focus is not on the Canadian government rebate but the rebate that GM provides. Let's assume that a vehicle costs $40,000 and Gm provides a cash for clunker rebate of $ 3,000 for a net cost of $ 37,000. The value of the clunker to the dealership is likely scrap value so I don't know why I would not be successful if I approached the dealership and just offered $ 37,000 ( forget the cash for clunker rebate ). The dealership would lose the scrap value of the vehicle but they would also avoid all the hassle of dealing and disposing with the wreck.
What am I missing ?