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 STORY HIGHLIGHTS
  • According to a new survey from CNW Research, 17% of 1,000 cash for clunkers participants said they have some or serious doubts they should have bought a new vehicle
  • Having a monthly car loan payment is worrying some
  • The new expense may negatively impact the total family budget more than expected, they say

Cash For Clunkers Causes Buyer's Remorse For Some

By Liz Opsitnik
Wednesday, Aug 26 2009 09:28

For more than 600,000 consumers, the cash for clunkers rebate was hard to pass up. Receiving up to $4,500 from the government to trade-in an older, gas-guzzling vehicle to put toward a new, fuel-efficient car was a great deal, as some of the clunkers were only worth a few hundred dollars.

Now that all these buyers have taken on an auto loan or lease payment, some are regretting it.

In a new survey of nearly 1,000 CARS (cash for clunkers) participants, 17% say they have some or serious doubts they should have made the new-vehicle purchase, according to CNW Research.

The main reason for the buyers’ remorse is that they now have a $275 to $350 monthly car loan payment that they didn’t have before. This new monthly expense could negatively impact the total family budget more than expected before buying the new vehicle, the survey participants said.

Normally, buyers’ remorse affects about 6 to 8% of new-vehicle buyers within a month, according to CNW Purchase Path research.

Maybe the rebate deal was too good to pass up, or consumers were concerned about the effect of the older cars on the environment or they didn’t want to keep repairing their older vehicles any more. Whatever the reason, more than 600,000 people took advantage of the government cash for clunkers program and bought new vehicles. Now some are wishing they didn’t.

Toyota Corolla

The appeal of a shiny, new car, like this Toyota Corolla, one of the popular cars bought during cash for clunkers, is hard for some to pass up. Now some are worried they won't be able to afford the monthly car loan payments.

 


Confused or unsure about some of the car loan terms used in the article? Click here for our Auto Loan Glossary.



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Comments

4 comments on this story so far.

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Comment By: robert v. on Wed, Aug 26 2009 at 10:44 AM
They shouldn't have bought a new car if they couldn't afford the car loan payments.
Comment By: TonyP4 on Wed, Aug 26 2009 at 11:42 AM
* A Nation of No Losers *

We do not let you be a loser!
Your mistakes will be rewarded handsomely.

When you bought a clunker that you should not have, we give you $4,500.
When you bought a mansion that you cannot afford, we're going to bail you out.
When you bought any inefficient appliance or anything, we'll pay you no matter how old they are.

When you lost your job, we extend your benefit.

When you do not have saving, we give you free health care.
When you have saving or a job, we take away your health care.

Teenagers, the more babies you have, the more benefits you have.
Drunk drivers, no one will prosecute you as the entire jury and even the judge are drunk.
Old ladies, your driver's license is also a license to kill.
Black kids, special pass to go to college and jobs.
Fatsos, do not worry as our up-coming drugs will melt all your fat while you sleep.


All athletes are rewarded with millions for taking drugs.
We voice loudly and disapprovingly on foreign athletes doing same.
It is an America invention!

When you cheated billions, you can retire in a resort-like 'prison'.
Also, the billions your wife hid is hers - no questions asked.

No other country lets their citizens own guns.
NRA and his puppet politicians will give you millions of funny 'reasons'.

When your company fails, we bail it out.
The executives are rewarded with bailout money for bringing down a company.

You die penniless, we give you $500.
You die with millions, we share your wealth.

The small catch.
We need you to re-elect us in 4 years.

The children cannot vote today, so let's pass our debts to them.
China does not have a voice here, so let's pass all the blames to them.
Comment By: Mark on Wed, Aug 26 2009 at 11:42 AM
Agreed, it's the same issue we are seeing with the credit crunch and foreclosures in some cases. People are/were living above their means and it's catching up to them. 'Keeping up with the Jones' can back fire on ya. Yet they keep putting it on the plastic, etc. I guess the credit card companies are doing quite well, especially in these times though.
Comment By: Red Oscar on Mon, Aug 31 2009 at 2:58 PM
I took advantage of Cash for Clunkers at the very start of the program. Between great factory incentives and the CARS credit, I got a tremendous deal and paid cash for a new set of wheels. Traded in an old bucket I had for nearly 20 years and got better than $3000 more than she was worth. So now that I’ve gotten a taste of that government money, all I can say is “I like it!” I won’t buy another new car unless the government and car manufacturers pony up some money. No buyer’s remorse for me. In fact, I can’t wait until Cash for Clunkers v2.0.

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