NEWS: The High Cost of a Free Car

CULTURE: The High Cost of a Free Car

Those who were lucky enough to be in the audience for Oprah Winfrey's car giveaway are suddenly finding that maybe their luck wasn't as good as they thought, because they may end up shelling out as much as $7000 in taxes for their "free" car.

For those who won the car, the choices are as follows: cough up the tax money to keep it, sell the car and pay the taxes out of the proceeds (still turning a nice profit -- enough to probably buy another car), or just forfeit their prize.

Even taking the taxes into consideration, it's still a $30,000 car for just over $7000, which is quite a deal; but keep in mind that most of the people in that audience were hand-picked to be there because they couldn't afford to buy a car anyway.

As far as financial problems go, this isn't a particularly bad one, but it still makes you wonder if anyone at "The Oprah Winfrey Show" saw this coming.

Thats the system for ya.. they can even make a free car an ass fuck.

Now see, personally...

If it were up to me, I'd have done one of the following things.

1. Given everyone a set of keys, but to the same car. And make them fight to see who gets to go home with said car. (battle royale style)

2. Given everyone keys to identical cars. Then make them wander the lot looking for the one their key fits.

Either one I think would've been more entertaining television.

poor.T

i second that emotion.


[Edited on Sep 23, 2004 by Ryan_Dipietro]

Well that certainly sucks.

*pisses on uncle sam*

Illinois residents have to add an additional 3% to that for state taxes. Considering the show is taped in Chicago, I wonder how many people ended up paying that additional amount.

The article states that the cars don't have to be picked up for quite some time, so everyone has time to figure out what to do with it -- sell it, save the money to pay for it, get a loan, etc.

As much as it sucks, I wouldn't mind getting a brand new, $28,500 car for $7-8000. Of course, I'd probably sell it and use the money to buy a less expensive, compact car.

[Edited on Sep 23, 2004 by Sorcha]

they actually said that the tax was going to be paid for the audience.

Its a never ending cycle... even if Oprah does offer to pay for the taxes, the people are still screwed, because next year on tax day, their income is raised 7000, which would be 1750 in taxes the following year. Granted, 1750 is a heck of a lot less than 7000, but they went in to that show owing nothing (at least nothing they didn't acrue themselves) and left 7k in the hole. After selling the car (which is now used) and paying off all the taxes, they'd have about 15 grand left. Thank the government for screwing the deserving people out of half of what they were given.

I must say though, 15k would pay off my debt and set me off in a much, much better direction, so its still nothing to sneeze at.

How were these people deserving of anything?

um... they were poor? I don't know, I was trying to be dramatic... mission failed.

Oprah should just given out free t-shirts like the Tony Danza Show. Just goes to show you nothing is really free anymore.

What a coincidence! $7000's about what you'd have to pay me to drive one of those Pontiac monstrosities. Really, when did GM start recruiting designers out of Mattel's Hot Wheels division?

I just checked out GM's website. That thing's packing a 3.5L V6. Why in the name of christ would a poor person want a guzzler like that, and who would give them such a thing as a gift? If GM wanted to push a product why not the new Pontiac that's based on the Suzuki Aerio? The more I look at this rigamarole the less I like it.

You're thinking of the Pontiac Vibe, which is in fact based on the Toyota Matrix and built in the Fremont, California GM/Toyota joint venture plant. I agree that the Vibe would be a better choice, cheaper, get better mileage, etc etc.

Also, you can bet that oprah got a fleet-pricing deal on those cars. She probably paid close to cost of production, maybe 18K each.

She didn't pay anything for them. Keep up.

No, I'm talking about the Pontiac Wave, which from the shot of the rear I took to be a redressing of Suzuki's compact 5-door, though I now realize it's more likely based on Toyota's 5-door version of the Echo.

[Edited on Sep 23, 2004 by Dogslife]

Sell the car for $28,000 and you still have $21,000. I wish I had that problem.

Wow, I feel so sorry for them.

Wait, no I don't.

The first thing I said when I heard this is "anybody who can't afford a car to begin with doesn't need a 28k car".

I mean really. If these people were so damn poor they couldn't afford cars, the first thing to do is sell it right away and buy a 1,000 buck used Chevy Nova...

Then roll around in the rest of the cash.

Bite me. The day i care enough about daytime television to actually pay attention to the details, is the day I get wheeled into the alzheimer's ward.


Kill your television.

That car is not sold in America by pontiac. There is no pontiac for sale in America based on a Suzuki at this time. The closest thing to the Aerio sold by Pontiac is the Vibe, twin of the Matrix.

Really.
We are talking about American market cars, remember - Oprah can't give away Canadian market cars in this country.

Chevy sells the Aveo, built by Daewoo in Korea. It's a miserable piece of shite. Daewoo builds the Suzuki Forenza, too - and Daewoo is now owned by GM.

its not a big huge deal. they make you pay income tax on stuff you win in game shows too.
every time a college students wins "a new car" on the price as right or anyone wins anything they have to pay out the income tax for it ...but atleast they have it at all.