Supply. People are holding onto their cars longer. The cash for clunkers program hit the used car market when it was already down. Further, financing is harder to get, so supply is down and demand is restricted only to those who can self-finance. It all works out according to supply and demand . . . but the bottom line is a huge number of the cars that are sold each year, 690,000 per your numbers, were destroyed by the government. Prices have risen by 10%. It was a stupid and destructive program that has hurt the poor, the middle class, and the thrifty.
Believe me. I am not arguing for the program.
Based on your previous figure of 1.75% how does that increase the price by ten percent.
I know it's fun to blame a stupid govt. program for the increase but that's a small part of it.
Someone posted to me on a similar thread that a bigger part of it is rental car companies are holding cars longer and people were not buying new cars. He claimed to have been a former car dealer.
I hate everything Obama does/is/will be but as I said there are good deal available. I think used car dealers are using this as an excuse to keep prices high.
Excuse me for butting in. New car sales are way off. At one point they were down to 9M a year from 16M. The way I count
it, that means at least 12M less used cars since the economy tanked.