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..
As long as the used car was rated at more than 18mpg, it does not qualify for the $4500 rebate, so it remains at “willing seller-willing buyer” price.
Actually, all the cars traded in on the cash for clunkers have to be destroyed. I’m ready to downsize (kids are now driving) and even thought about this program (about time I got some of my tax dollars back). Once I found out they destroy the cars traded in, I changed my mind. Why should my perfectly good 5 year old Expedition be trashed (not even sold for parts, just scrapped) when it still has many good years in it. Talk about wasteful!
However, when I want to sell it, I see the price going up, as the government is eliminating my competition for me!
Very temporarily.
You don't think they can keep this thing up forever, do you?
Plus, this being the government, a lot of the people who buy a car based on the cash for clunkers rebate are not going to get the rebate. It's already happening.
This is going to be the biggest government snafu ever perpetrated. Leno and Letterman will be joking about it for years.