Originally Posted By: Wolf359
Many people seem to think cash for clunkers lead to an increase in the price of used cars. There's no real reports out there that really support that position. In reality when you go from making 17 million cars a year down to 11 or 12 million cars a year. Basically in 2005, 17.4 million cars were sold in the US, in 2006 - 17, 2007 - 16.4, 2008 - 13.5, 2009 - 10.6, 2010 - 11.8, 2011 - 13. So from 2007-2011, about 19.1 million less cars were sold. Versus 680k cars that were crushed in cash for clunkers. That decrease is probably 96% of the reason why the price of used cars are high, not that much supply. And also why market prices for good used cars are high, they just didn't make that many of them. Also with a value up to $4500, those were NOT good used cars. Don't forget that Hurricane Sandy alone destroyed 250k cars, and that was all types.
Shhh, people wants to blame the government for everything, don't [censored] them off.