I did some research online and put together a list of pros and cons regarding the “Cash For Clunkers” program. I’ve made a list for the individual who is considering buying a car through the show, and also a list for the “Collective Soul”, so that we consider the overall impact on the universe, as outlined in this article.

So far the Pros and Cons add up to this: Singles: 4-Pro, 6-Con. Collective Soul: 6-Pro, 12-Con.

INDIVIDUAL:

advantages

1. $4,500 + other incentives You may be able to save a lot of money on a new car purchase if you look for more incentives than just the $4,500.

2. Less gasoline. You could save a lot of money at the pump.

3. Reduce repair costs.

4. Environment: Your driving will cause less pollution.

cons

1. Insurance: It usually costs more to insure a new car.

2. New Debt: Is Borrowing More Prudent In Your Financial Situation?

3. Wasted Parts: Your old car will be destroyed. It is questionable whether some of the parts will be recycled or not.

4. Added value to your old junk. The used car market can get hot due to declining supply. Your used car may be worth more than the coupon after this Cash for Clunkers program leaked.

5. More gasoline. You may be inclined to drive more knowing that your car gets better gas mileage.

6. Comfort Zone. You KNOW your old car. And he knows what repairs you’ve made to it and what’s likely to go wrong.

FOR THE COLLECTIVE SOUL:

advantages

1. Increases sales at car dealerships.

2. Increased new car sales to consumers who might not otherwise buy right now. For upper- and middle-income people with good enough credit to get a car loan, it gives them a down payment.

3. Older vehicles are often less fuel efficient than their modern counterparts, so taking them off the road and replacing them with newer cars would likely decrease oil consumption for individual owners and the nation.

4. Old vehicles generally don’t run as clean as new vehicles, so removing and replacing them on our roads would likely reduce vehicle exhaust emissions, thus lessening the impact on the environment.

5. Older vehicles were not held to the same crash and safety standards as newer cars and tend to be less safe in an accident. Replacing them with newer vehicles could lead to fewer injuries and deaths in car accidents.

6. Automakers are struggling right now, especially domestic automakers. Providing a financial incentive to buy new cars would likely lead to increased car sales, which would generate revenue for automakers and help them weather the economic downturn, while also stimulating the economy.

cons

1. Artificial and unsustainable boom in car sales.

2. Crushing those old cars makes those parts and vehicles harder to come by and consequently more expensive.

3. Many companies make parts and upgrades for older vehicles. A reduced supply of older vehicles would negatively affect your sales.

4. The auto restoration and customization industry relies on vintage cars as the basis of its products. A reduced supply of older vehicles would negatively affect your sales.

5. For low-income people, it makes it more difficult to find and maintain an older vehicle.

6. Convince low-income people, those who drive “junkies”, to go out and finance a new car when we are still in the midst of the consequences of easy credit in the housing market.

7. Deliver vehicle donations to charities. Some charities that rely on vehicle donations for funding say they are receiving fewer cars and trucks because donors change their minds and decide to trade vehicles in the Cash for Clunkers program.

8. Some older vehicles actually get better gas mileage than some newer ones. Replacing them would negate any benefits to the environment or America’s oil consumption problem.

9. Encouraging consumers to scrap working vehicles could shorten the life of cars and encourage the production of new cars, which would have a greater adverse effect on the environment than keeping the old car.

10. This proposal would not necessarily benefit the worst-off automakers, since there is no guarantee that consumers will use their incentive to buy a vehicle from one of those manufacturers and not from another company.

11. The program is not restricted to AMERICANS, and it is not restricted to AMERICAN-made vehicles, but comes from AMERICAN taxpayer money.

12. It costs more than $4,500 per exchange. It costs about $6,000 per vehicle, factoring in the cost of additional government staff, office space rental, equipment, employees, web development, form printing, etc.

http://en.wikipedia.org/wiki/Car_Alowance_Rebate_System