It will totally destroy the used car market. As of now, your used car is worthless.
Not unless they make it illegal to sell used cars....which is not to far fetched.
Actually it will drive up the prices of all cars..new or used. The govt just increased the amount of money buyer have to buy cars. Plus the minimum price for a running clunker just became $4500. Why sell for less? That means that the price of all used cars will go up and there will be less of them. New car prices go up since stupid buyers will be willing to pay higher prices because they suddently have a down payment with the clunker.
Just more dollars chasing fewer goods..
But then not to many people want to buy the pile of garbage so you may be correct.
Actually, I think it will make the used SUV more expensive. There will be fewer of them. The whole supply and demand thing...
No, that used Tundra must become more expensive. “Clunkers” are not being resold, they are being destroyed and taken off the market. There will be fewer used cars available, increasing their costs.
Cash for clunkers is an example of the Broken Window Fallacy in action. It only makes sense if you assume that the benefit of removing “gas guzzlers” from the fleet outways the costs, an assumption that I do not share.