'Cash for Clunkers' mostly a clunker

NEW YORK (CNNMoney.com) — If you think the new “Cash for Clunkers” law is going to help you buy a new car, you’re probably wrong.

As it’s written, the law will benefit few car shoppers and those who might actually benefit from it probably shouldn’t be buying a new car to begin with.

Here’s why it won’t do most people much good: The government refund vouchers for $3,500 or $4,500 are in replacement of — not in addition to — the ordinary trade-in value of the vehicle, which in many instances will be worth more than the voucher.

“It’s not a rebate,” pointed out Jeremy Anwyl, chief executive of the auto Web site Edmunds.com. “It’s a minimum trade-in allowance.”

CNN