A few months ago, I wondered what the ef…

A few months ago, I wondered what the effect would be on all of the used cars being taken out of circulation by Cash for Clunkers:

So, first of all, they’re destroying the engines of perfectly good cars making them useless as cars, which reduces the supply of used cars on the market. By definition cars must be “drivable” to be eligible for the rebate and therefore could be serviceably resold.

. . .

A case could be made here that this is an attempt to weaken the used car market to the benefit of the new car market. I guess the idea is that if there are fewer used cars, then folks that normally wouldn’t buy new cars will do so now. That may be true for a thin slice of the economic spectrum but for the rest of us who continually buy used cars, we might should be angry.

Well, it only took about three months:

“Customers used to be able to find a good car for their son or daughter to take to college for $2,000 or $3,000, but now that same car may cost $5,000,” [general manager of Perry Auto Service & Sales George] Tabakelis said. “It’s sad.”

Of course, in this recession with unemployment high, I’m sure if people can’t get a used car, they’ll just buy a new one.

Right?

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