Example taken from Don Harrold with lower figures.
Initial clunker (car) cost on average = $20,000. (being generous)
Interest, Tax, title, liscence, other = around $2400 (being generous)
Total COST= around $22,400
Money for "Clunker" = $4500 (credit)
Total COST= $17,900
New car= $20,000 (average)
Interest, Tax, title, liscence, other = around $2400 (being generous)
Total DEBT for new car= $22,400
Drive new car off lot and now it's only worth $11,000. You just went into immediate debt for $11,000 just by driving off the lot. Plus all the money you spent on your initial clunker and the new spending/debt total is $28,900. Total cost of the new vehicle plus cost of old vehicle = $40,300
So on average a person spent almost $40,000 of their hard earned dollars to help an overseas economy that sells the car parts to Americans. The banks make money. The tax payer pays for the program. There is no credit to the public only more public debt.