Used car prices skyrocket a year after Cash for Clunkers

posted at 1:35 pm on August 25, 2010 by Ed Morrissey

With home prices falling, fewer people employed, and every economic indicator on the dashboard flashing red, deflation has started to become a big enough worry that the Fed has adjusted its monetary policy to account for it.  There are no such worries in the used-car industry, however.  Prices have jumped 10% overall and in some cases as much as a third for used cars, thanks not to demand as much as a restricted supply after the government destroyed billions of dollars in assets as part of its Cash for Clunkers program last year (via Instapundit):

Car buyers on average paid $1,800 more for a used vehicle in July than they paid a year ago at this time, according to Edmunds.com data. That’s a 10.3 percent increase, bringing the average cost of a 3-year-old vehicle to $19,248. The price of a Cadillac Escalade spiked nearly 36 percent. “A lack of confidence in the economy is driving more people to used cars, putting upward pricing pressure on a limited supply of vehicles,” said Joe Spina, a senior analyst for Edmunds. …

Spina said that at this time last year, a troubled economy had consumers buying less- expensive fuel-efficient vehicles and trading in “gas guzzlers” through Cash for Clunkers (more formally known as the Car Allowance Rebate System). “Now, those who need trucks and large SUVs are buying them and in many cases are turning to used vehicles as a way to save money,” he said. ”Prices are high because this demand comes at a time when inventory is low as a result of the current shortage of lease returns and trade-ins for vehicles of this type.” And, he said, while prices are indeed very high now, last year’s prices were low, making the gains even more dramatic.

In other words, there was real and rational demand for the cars that the Obama administration sent to the grinders.  That demand hasn’t stopped, even if tainted with political incorrectness.  The top four vehicles for price increases in Edmunds’ used-car tracking are all high-end, larger cars or SUV:

  • Cadillac Escalade – 35.6% increase
  • Chevy Suburban – +34.2%
  • Dodge Grand Caravan – +34%
  • BMW X5 – +33%

As predicted last year, the people most hurt by the price increases are those who can least afford them.  The used-car market usually attracts people who need transportation on a budget, who cannot afford to buy new.   By destroying a quarter’s worth of trade-ins in three weeks and permanently taking them off the market, the Obama administration has forced an artificial inflation by supply restriction.  Moreover, they did so by subsidizing new-car sales that would have occurred anyway, eating up three billion dollars in taxpayer money.

In other words, the White House spent $3 billion to make used cars more expensive for working-class families.  Nice work.


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Comment pages: 1 2

I won’t say I told you so. So I’ll say…

Count it!

lorien1973 on August 25, 2010 at 1:37 PM

The Administration wants poor people to ride the bus.

JonPrichard on August 25, 2010 at 1:38 PM

Market forces are a mystery to communists.

SirGawain on August 25, 2010 at 1:39 PM

So, uh, anyone want to buy a 1994 Honda Civic?

skree on August 25, 2010 at 1:39 PM

HHHMMM how do we say……Laws of Unintended Consequences!

xler8bmw on August 25, 2010 at 1:41 PM

“But we have fresher air! Less Global Warming! No Traffic congestions! (what else?…)!”

/People supporting or supported C4C

Sir Napsalot on August 25, 2010 at 1:41 PM

OK. At this point, Ed..we need to come up with a 2010 holiday season book of “i told you so”s for family dinner this year.

oh, how i remember my brother in law wearing his Obama shirt Christmas 2008…

bloghooligan on August 25, 2010 at 1:41 PM

In other words, the White House spent $3 billion to make used cars more expensive for working-class families. Nice work.

Have they done the exact same thing to the housing market as well?

Mord on August 25, 2010 at 1:42 PM

These are very real consequences of the nutcases in Washingtton DC. As we are trying to buy a used car, the seller has increased the price in the past week by 200$. We just told the seller to forget it, we’ll buy a new one. There is no way the lower incomes are going to be able to afford cars let alone teenagers.

ORconservative on August 25, 2010 at 1:42 PM

In other words, the White House spent $3 billion to make used cars more expensive for working-class families. Nice work.

Hey – if you want to make a CHANGE omelet, you have bust some capitalist and low-income skulls to get in their faces and punch back twice as hard, keeping your boot on their throat and bringing a gun to a knife fight.

Shut up, wingnuts. We saved the economy.

Good Lt on August 25, 2010 at 1:42 PM

In other words, the White House spent $3 billion to make used cars more expensive for working-class families. Nice work.

Dear Liar hates poor people.

rbj on August 25, 2010 at 1:43 PM

Ha, tell me about it! I had to buy a new truck this month even though I really wanted a used one that I could pay cash for. I was looking for a used Ford either a ranger extended cab or a F150 with decent mileage on it. No way! There simply wasn’t anything out there to be had at any dealer that wasn’t beat to snot or had in excess of 75,000 miles on it. Wound up buying a Toyota Tacoma and I am happy with it.

Johnnyreb on August 25, 2010 at 1:43 PM

Are we certain it is ONLY $3 billions?

They haven’t closed the book yet, have they?

Sir Napsalot on August 25, 2010 at 1:43 PM

Why do Democrats hate the poor?

Rae on August 25, 2010 at 1:44 PM

Obama loves his chaos. The plan is working.

faraway on August 25, 2010 at 1:44 PM

Have they done the exact same thing to the housing market as well?

Mord on August 25, 2010 at 1:42 PM

Not exactly.

Housing prices aren’t rising. They’re falling. Good if you’re a buyer, bad if you’re an owner.

Good Lt on August 25, 2010 at 1:44 PM

Always before I would buy a vehicle and then watch how rapidly it depreciated. In 03/08 I bought an 07 Escape for a couple of thousand under retail book value. Now that same 07, 2½ older has a bluebook value $4,660 greater than what I paid for it. Could you believe that a vehicle was a good investment?

Oleta on August 25, 2010 at 1:44 PM

It’s almost as if government interventions in markets could produce unintended negative consequences!

Blacklake on August 25, 2010 at 1:44 PM

Obama doesn’t drive cars into the ditch. He shreds them.

Mr. D on August 25, 2010 at 1:46 PM

Well, as Michelle Antoilette said, “Let them ride high speed rails.”

Dhuka on August 25, 2010 at 1:46 PM

Don’t you just love Obamanomics? Well Barry did say that people would have to sacrifice. Just look at all the “sacrifice” he and Michelle are doing.

GarandFan on August 25, 2010 at 1:46 PM

They spent 3 billion to buy older, but useful cars and then destroy them.

Why not address the housing slump the same way? Buy old houses from people at a subsidized price so they have some cash to upgrade to a new one. Then burn down the older house to address the oversupply and make work for builders. It’ll work great, trust me. Recovery summer.

forest on August 25, 2010 at 1:47 PM

Are you kidding me? Do you mean to say that the basic economic principle of supply and demand is at work? This is a surprise. No wonder why the super-brains in this administration missed it.

dirtseller on August 25, 2010 at 1:47 PM

So, uh, anyone want to buy a 1994 Honda Civic?

skree on August 25, 2010 at 1:39 PM

I would, if I could afford it.

Thanks to the Osama Obama regime’s “economic policies” — which would be rejected by a third-grader who can count to more than 10 — I’m jobless.

I also need a car. Yes, I would have bought one of those nice “clunkers” (an economical one, not SUV) that went to the scrapheap. Now I can’t even afford that. I’ll be damn lucky if I can get some heap that looks like it was driven up here from Ciudad Juarez. Via the river.

Thank you, Lord Barack. You have “transformed” my life.

MrScribbler on August 25, 2010 at 1:47 PM

The goal was to increase demand for new cars, and thus keep the UAW working on the assembly lines, rather than have the factories idle.

Wethal on August 25, 2010 at 1:47 PM

Could the spike in the price of used cars have something to with, oh I don”t know: Lord and Master Obama arbitrarily closing all those car dealerships last year. If anyone thinks this isn’t by design; well I have a used car to sell you.

Tommy_G on August 25, 2010 at 1:48 PM

In other words, the White House spent $3 billion to make used cars more expensive for working-class families. Nice work.

Job killers, car killers, baby killers, family killers, wealth killers and home value killers…..these are the elites of this country—they are real, they are dangerous and they are going to be dealt with because there is one thing they cannot kill and that is the American spirit.

ted c on August 25, 2010 at 1:49 PM

I noticed this in the very low end too. We were looking to pick up a really cheap truck. I was amazed to see that even at the lowest end, car prices have risen. Gone are the days of the halfway decent (i.e. running and has a functioning AC) days of 1000 cars. My grandfather was a mechanic, and until last year would buy these kinds of cars all the time, so I know they used to exist. I guess they were all “cashed in.”

Vera on August 25, 2010 at 1:49 PM

You’re missing the point though. There is less CO2 in our atmosphere due to Obama’s policy to destroy those cars.

The rise of the oceans began to slow and our planet began to heal.

No. Really.

I’m serious.

Really.

Obama saved the earth.

Stop laughing.

Really.

ButterflyDragon on August 25, 2010 at 1:49 PM

Think ObamaCare as you read this post…

d1carter on August 25, 2010 at 1:50 PM

Frederic Bastiat is rolling in his grave …

PackerBronco on August 25, 2010 at 1:50 PM

I just also thought of another wonderful side effect of the whole Cash for Clunkers thing: Fewer donations to Cars for Kids. Obviously Obama hates children.

Vera on August 25, 2010 at 1:54 PM

Stacey David did an entire epsiode of Gearz ripping apart cash for clunkers.

This car guy on Speed TV who mods cars and trucks could see what was happening. DC types? Not so much.

Jim708 on August 25, 2010 at 1:55 PM

In other words, the White House spent $3 billion to make used cars more expensive for working-class families. Nice work.

Histories biggest example of the broke window fallacy?

Count to 10 on August 25, 2010 at 1:55 PM

It’s almost as if the Obama Economics team sits around and dreams up programs/plans that are guaranteed to destroy the America that we all know and love. Just off the top of my head, here is a list of programs that are dragging down the economy of this country (and will continue to do so)…
’10 and ’12 cannot come soon enough.
– C4C
– Housing Rebate
– Cap-n-Trade
– Obamacare
– Expiration of ’01/’03 Tax Cuts
– Bailout of Fannie/Freddie MAE
– Acquisition of GM/Chrysler
– Oil Exploration Moritorium
– Stimulus

jwehman on August 25, 2010 at 1:55 PM

I’m looking at buying a new vehicle – fewer potential problems, and dealers are getting desperate to the point that new vehicles will be selling for near the price of used soon. I’ll throw in the fact that I’m paying cash right at the end, after negotiations.

Vashta.Nerada on August 25, 2010 at 1:55 PM

So much for that car metaphor that Barry uses all of the time.

alflauren on August 25, 2010 at 1:56 PM

Y’know, it’s almost like Scooter and his minions don’t have any reald world business knowledge and base their economic policy on unsupported and unproven theories. /

kingsjester on August 25, 2010 at 1:56 PM

So, uh, anyone want to buy a 1994 Honda Civic?

skree on August 25, 2010 at 1:39 PM

Any vehicle 1995 (or is it ’96?) or older will really be a hot comodity, once people figure out every car manufactured since then has a “more intrusive” computer control system.

My knowledge of the matter is limited to the bare-bones of what I just stated. I’m really hoping one of you fellow posters can provide some more intimate detail of this.

listens2glenn on August 25, 2010 at 1:57 PM

[Looks out at packed garage] Soooo, anyone in the market for a 07 Suburban, 06 Escalade, 02 Jeep Liberty, 83 DeLorean? I could use the dough and the space. Seems I finally found something of mine worth more than my house. No one is buying it, either.

di butler on August 25, 2010 at 1:57 PM

Well, I wouldn’t worry. Sure, no used cars now, but just wait until that 30 % unemployment and people selling cars to survive! After all, no job, no money, no need for a car, eh?

Isn’t Obamanomics great!

Vanceone on August 25, 2010 at 1:58 PM

In other words, the White House spent $3 billion to make used cars more expensive for working-class families. Nice work.

I haven’t been surprised by Obama since his Honduras stance. Whatever the right decision is, he will choose wrong. He’s become eerily consistent.

JavelinaBomb on August 25, 2010 at 1:59 PM

Can’t say there’s less CO2 in the atmosphere .. but there’s a damn-sight fewer bump-O-stickers on the roads !

/.

CaveatEmpty on August 25, 2010 at 2:00 PM

But don’t forget, if you vote Republican you hate the poor.

David Shane on August 25, 2010 at 2:01 PM

All because ACME Insurance laughed at Barry over the phone.

Christien on August 25, 2010 at 2:02 PM

83 DeLorean? I could use the dough and the space. Seems I finally found something of mine worth more than my house. No one is buying it, either.

di butler on August 25, 2010 at 1:57 PM

I’d love to get a DeLorean, but I need a PU/SUV.

Vashta.Nerada on August 25, 2010 at 2:02 PM

I was wondering why the Nissan dealers kept sending me offers to trade in my 07 Frontier, now I know.

mad scientist on August 25, 2010 at 2:02 PM

My knowledge of the matter is limited to the bare-bones of what I just stated. I’m really hoping one of you fellow posters can provide some more intimate detail of this.

listens2glenn on August 25, 2010 at 1:57 PM

Back in the days when I had money (and tools and workspace, and available wrecking yards full of necessary parts) I tended to buy pre-1976 cars. Carburetors, points-type ignition systems and the lack of catalytic converters made them more reliable and repairable propositions.

Modern cars are good, but the average driveway tinkerer can’t fix a damn thing on them. Dealers usually throw away parts, instead of repairing.

MrScribbler on August 25, 2010 at 2:03 PM

Have they done the exact same thing to the housing market as well?

Mord on August 25, 2010 at 1:42 PM

Not exactly.

Housing prices aren’t rising. They’re falling. Good if you’re a buyer, bad if you’re an owner.

Good Lt on August 25, 2010 at 1:44 PM

That’s because Obama thought it would be a brilliant idea to destroy the automobile assets; he hasn’t done that with houses.

Yet.

pain train on August 25, 2010 at 2:03 PM

HHHMMM how do we say……Laws of Unintended Consequences!

xler8bmw on August 25, 2010 at 1:41 PM

Er, this was an INTENDED Consequence.

steveegg on August 25, 2010 at 2:05 PM

In other words, the White House spent $3 billion to make used cars more expensive for working-class families. Nice work.

It’s amusing that, exactly one year later, we “get” what we should have gotten.

Via the “wayback machine”, here was my take on this, cross-posted at HotAir on 25 August 2009:

What Knittle failed to cost in terms of damage to the environment was the destruction of the “trickle down” effect that trading in “clunkers” as working vehicles would have had on the nationwide fleet economy. Those poor who drive don’t generally drive cars less than 10 years old. We’ve just destroyed a bunch of perfectly good working vehicles (like the famous late model Volvo “clunker” destroyed on YouTube) which get far better gas mileage than the “clunkers” the poor drive which are not eligible for the program. In the interests of buoying Government Motors and its unions, we have concocted a program in which the poor and the rich pay for yuppies to upgrade their vehicles, while at the same time damaging the ecology and the economy. So, when you libs crow about thanking us all for your new car, think of the poor person who would have been happy to upgrade their vehicle to your “clunker”, and realize that it isn’t us who will be paying for your car, it’s our unborn children and their children who will pay the bill.

unclesmrgol on August 25, 2010 at 2:05 PM

Any vehicle 1995 (or is it ‘96?) or older will really be a hot comodity, once people figure out every car manufactured since then has a “more intrusive” computer control system.

listens2glenn on August 25, 2010 at 1:57 PM

You’re thinking of the OBD II, III, and IV. Yes, it is intrusive, but as the driver of a few 25, 30 and 35 YO vehicles can attest, it is getting harder to source parts for the older ones.

Vashta.Nerada on August 25, 2010 at 2:06 PM

Soooo, anyone in the market for a 07 Suburban, 06 Escalade, 02 Jeep Liberty, 83 DeLorean?

You didn’t happen to buy that DeLorean from a Dr Emmett Brown, did you?

listens2glenn on August 25, 2010 at 2:06 PM

You’re thinking of the OBD II, III, and IV. Yes, it is intrusive, but as the driver of a few 25, 30 and 35 YO vehicles can attest, it is getting harder to source parts for the older ones.

Vashta.Nerada on August 25, 2010 at 2:06 PM

Yeah, I know that too, and so do they.

listens2glenn on August 25, 2010 at 2:08 PM

And my wife wants a truck. It looks like we’ll have to continue looking at CraigsList.

MobileVideoEngineer on August 25, 2010 at 2:08 PM

With apologies to Mel Brooks:

“Mr. President! The peasants are revolting.”

Mr. Obama: “They certainly are.”

sdd on August 25, 2010 at 2:10 PM

Wunnerful.

My husband may be taking a job in the neighboring city soon (crossing my fingers–job market in his field here is supersaturated), and will need to trade in his old motorcycle to get a cheap car to go between cities. He’s counting on the trade in from the motorcycle plus the signing bonus he hopes to get to get him something decent. Now I am not so sure.

Sekhmet on August 25, 2010 at 2:10 PM

Er, this was an INTENDED Consequence.

steveegg on August 25, 2010 at 2:05 PM

My sentiments, as well.

listens2glenn on August 25, 2010 at 2:11 PM

I wonder how long it will take this bho and team to demand all ‘old’ car replacement parts are no longer made? I would not put anything past these lower than slug slime! You gotta buy gov. cars, don’t you know?
L

letget on August 25, 2010 at 2:12 PM

My local dealer offered me 120% of market value for my car in trade a few weeks ago. I couldn’t take it because I’m out of work and can’t qualify for a new car loan or lease. But it surprised me, the letter said they were experiencing heavy demand for used cars of my make and model. I thought they were just trying to get people into the showroom to buy a new car.

Maybe I should sell my car now. I have another one I can use, though it is old and falling apart. I could get top dollar and more than I owe on it.

rockmom on August 25, 2010 at 2:13 PM

Job killers, car killers, baby killers, family killers, wealth killers and home value killers…..these are the elites of this country—they are real, they are dangerous and they are going to be dealt with because there is one thing they cannot kill and that is the American spirit.

ted c on August 25, 2010 at 1:49 PM

Don’t forget small farm killers. The egg recall has proven to be another convenient crisis for the fascists in Washington to not let go to waste. The Senate is expected to vote on Monsanto’s Food “Safety” abomination in mid-Sept.

Government to Regulate Your Whole Life. Again.:

The intent of the bill is to federalize what little authority remains in the hands of individual states. But also, the politicos want to take what little power that remains in the hands of private producers and transfer it to the Big Food Manufacturer-Big Agra-Big Government complex so that the rent-seeking corporatist state can squash its community competition under the guise of “keeping you healthy and safe.” These politicos are kept in power thanks to the munificent coffers of the Big Food power players.

This, along with the death tax, will probably be the final nails in the family farm/ranch coffin.

Rae on August 25, 2010 at 2:14 PM

The Great Crash

faraway on August 25, 2010 at 2:14 PM

That’s because Obama thought it would be a brilliant idea to destroy the automobile assets; he hasn’t done that with houses.

Yet.

pain train on August 25, 2010 at 2:03 PM

We need to get the State out there to start buying and then burning down houses to get this country out of the ditch Bush drove us into. Destroying perfectly good cars just wasn’t big enough as a growth program. We need to blow more money and destroy assets on a grand scale if we expect to see any growth.

forest on August 25, 2010 at 2:15 PM

You’re thinking of the OBD II, III, and IV. Yes, it is intrusive, but as the driver of a few 25, 30 and 35 YO vehicles can attest, it is getting harder to source parts for the older ones.

Vashta.Nerada on August 25, 2010 at 2:06 PM

It’s not just the OBD systems, but also the complexity that comes along with them. When sensors, computers and associated components fail, the best you can hope for is that they allow a “limp-home” mode that keeps the car running.

Both I and my bank account would rather change a spark plug than an “ignition module.”

MrScribbler on August 25, 2010 at 2:18 PM

di butler on August 25, 2010 at 1:57 PM

How many miles does your DeLorean have on the chassis, and how many years on the flux capacitor? I might be in the market. ;}

Dark-Star on August 25, 2010 at 2:18 PM

We need to get the State out there to start buying and then burning down houses to get this country out of the ditch Bush drove us into. Destroying perfectly good cars just wasn’t big enough as a growth program. We need to blow more money and destroy assets on a grand scale if we expect to see any growth.

forest on August 25, 2010 at 2:15 PM

You have it wrong. They don’t have to burn down the houses — they just have to rip out all the electrical wires and water lines The rest of the house can be recycled, while the copper and brass goes to China to be made into new electrical wires and water lines — for the Chinese.

unclesmrgol on August 25, 2010 at 2:25 PM

The next articles Krugman/Rich/Friedman write will be about riding bicycles. It’s better for the environment, and it’s cool because so many Chinese ride bikes.

If you live in an area where the snow is six feet deep in the winter, just get over it, already.

Cody1991 on August 25, 2010 at 2:26 PM

A shortage of used cars?

This is the third-world nation we have become under Obama?

IntheNet on August 25, 2010 at 2:27 PM

In other words, the White House spent $3 billion to make used cars more expensive for working-class families. Nice work.
Have they done the exact same thing to the housing market as well?

Mord on August 25, 2010 at 1:42 PM

I can assure, being a real estate broker and an auto dealer, he has fricked things up in BOTH almost beyond repair. I hope to hang on but it’s ugly out here!

Tim Zank on August 25, 2010 at 2:27 PM

In other words, the White House spent $3 billion to make used cars more expensive for working-class families. Nice work.

those that ignore the broken window theory will always be hit by the unseen consequences

unseen on August 25, 2010 at 2:27 PM

A shortage of used cars?

This is the third-world nation we have become under Obama?

IntheNet on August 25, 2010 at 2:27 PM

Obama models us after Cuba, where the newest car is a 54 Chevy.

faraway on August 25, 2010 at 2:30 PM

“Nice work.”

That’s obviously sarcasm from Ed, but another interpretation of that phrase – as it applies to Obama’s administration – is that it’s all being done on purpose. “Nice work.”

locomotivebreath1901 on August 25, 2010 at 2:30 PM

That’s because Obama thought it would be a brilliant idea to destroy the automobile assets; he hasn’t done that with houses.

Yet.

pain train on August 25, 2010 at 2:03 PM

Well, they’re still using the houses as part of the “green jobs” strategy.

Once they’re done throwing insulation in those houses and spending a few billion on it, then it wouldn’t surprise me if Obama wouldn’t start a program to fund eminent domain programs in cities with a glut of houses via federal tax dollars.

You know, cities and states can buy up houses, demolish them and plant trees in their place.

ButterflyDragon on August 25, 2010 at 2:31 PM

The used-car market usually attracts people who need transportation on a budget, who cannot afford to buy new

Um, if you’re that poor what the hell are you doing buying an escalade or an X5?

triple on August 25, 2010 at 2:36 PM

this is a big Fing deal

unseen on August 25, 2010 at 2:36 PM

You know, cities and states can buy up houses, demolish them and plant trees in their place.

ButterflyDragon on August 25, 2010 at 2:31 PM

hit would be cheaper if they just hired youths to break windows so the glass maker can be employed

unseen on August 25, 2010 at 2:37 PM

If you destroy a commodity, it tends to become more expensive assuming demand stays the same.

Watching videos of dealerships killing off very nice used vehicles was sad. It’s perhaps one of the best examples of this administration using tax money against it’s own citizens by paying companies to destroy wealth.

We had to pay for the ticket to the dollar bill bonfire thrown by the Obama administration.

Asher on August 25, 2010 at 2:37 PM

Hold it!!!! Hang on!! Help is on the way!!! /not

Obama takes action: Holds conference call
By Jamie Coleman || August 25, 2010 at 18:24 GMT

He’s not just sitting around his $50,000 a week mansion on the Vineyard playing Scrabble with Valerie Jarrett, President Obama is taking action, the White House says.

In fact, he boldly held a conference call with his top-flight economic team team to discuss recent economic data. That ought to do the trick…

from forexlive.com

Cody1991 on August 25, 2010 at 2:38 PM

“more intrusive” computer control system.

My knowledge of the matter is limited to the bare-bones of what I just stated. I’m really hoping one of you fellow posters can provide some more intimate detail of this.

listens2glenn on August 25, 2010 at 1:57 PM

Bcs of CAFE standards, semi trucks & heavy duty vehicles are crappier than ever.
Had 2 friends buy new diesel Dogde duallys a few years back. You can’t let them idle for more than 5 minutes or the masses of filters (fuel) will plug up & the computer will then not allow the vehicle to run.
From what I understand, Caterpillar evidently stopped making diesel engines for semis bcs of the new CAFE standards. They don’t want to play this game bcs they know everybody’s going to have problems.
Of course, since large trucking companies are getting all new vehicles, the cost of goods moved by truck will increase bcs the cost of maintenance & repair is skyrocketing. We have seen this ourselves.
Older diesel trucks are going for premium cash.
I feel lucky we bought our 90′s model Peterbuilt when we did.
The reliability of new vehicles is gonna get BAD for some.
I drive a 96 Honda Accord with 215,000+ miles.
I want another older model. I loves Hondas.
I don’t think you can really kill them.
Our ranch vehicle besides the pickup is an 88 Honda Accord.
When there’s not a fire danger, we use it in the pasture to fix fence & cahse cows & stuff.
They are awesome.

Badger40 on August 25, 2010 at 2:39 PM

Oh, come on…

I really seriously doubt a lot of Escalades, or X5′s were turned in as clunkers last year.

”Prices are high because this demand comes at a time when inventory is low as a result of the current shortage of lease returns and trade-ins for vehicles of this type.”

Cash for clunkers was indeed a stupid idea. But it didn’t cause this shortage, as even this article clearly says.

Typhoon on August 25, 2010 at 2:40 PM

I’ve been thanking God I still have a job so much my knees are bleeding. Can’t wait to get back next week and count how many “Got Hope?” stickers have been scraped off faculty bumpers.

teacherman on August 25, 2010 at 2:41 PM

– C4C
– Housing Rebate
– Cap-n-Trade
– Obamacare
– Expiration of ‘01/’03 Tax Cuts
– Bailout of Fannie/Freddie MAE
– Acquisition of GM/Chrysler
– Oil Exploration Moritorium
– Stimulus

jwehman on August 25, 2010 at 1:55 PM

Student Loan acquisition
Land grab in the West
Ocean/fishing nationalization

conservative pilgrim on August 25, 2010 at 2:44 PM

Sekhmet on August 25, 2010 at 2:10 PM

Craig’s List. Although this route will hurt car businesses of all sizes, he could sell his motorcycle and find a decent used car there. We just got a used Honda Civic ’08 (one owner, practically new, still has warranty) for such a low price. There’s no way we would’ve ever gotten the car for that price we paid through a dealer. Never.

conservative pilgrim on August 25, 2010 at 2:47 PM

The used-car market usually attracts people who need transportation on a budget, who cannot afford to buy new

It also attracts people who want more “bang for the buck.” You can get a 2 year old car with all the bells whistles for the same price you’d pay for a stripped down new car.

Or at least you used to be able to. It appears that this is no longer the case.

Vera on August 25, 2010 at 2:56 PM

They spent 3 billion to buy older, but useful cars and then destroy them.

Why not address the housing slump the same way? Buy old houses from people at a subsidized price so they have some cash to upgrade to a new one. Then burn down the older house to address the oversupply and make work for builders. It’ll work great, trust me. Recovery summer.

forest on August 25, 2010 at 1:47 PM

Aren’t they bulldozing houses in Detroit? They should recycle them as affordable housing for that mob in Atlanta.
On a separate note, we looked all summer for a used car for my son and had a very difficult time finding one for a reasonable price (in fact I think we paid too much but could not find a better deal).

txmomof6 on August 25, 2010 at 3:00 PM

even Teh Won can’t outrun the law of supply and demand.

“But they didn’t cover that in my hoity-toity law school, so it must not exist”

johnny alpha on August 25, 2010 at 3:03 PM

I Won !!!

Sandybourne on August 25, 2010 at 3:20 PM

I love Cadillacs (and hate BMWs), but if there’s any vehicles a family should consider, and may be the next best choice for the USA, it’s multi-purpose-vehicles (MPVs for short). They’re similar to hatchbacks and station wagons, but with slightly higher roofs. Let me show you a few examples:

Citroen C4 Picasso.

Peugeot 3008.

Fiat Multipla.

As far as I know, there are at least a handful of MPVs sold in the US, including one from Honda. Their engines are not as heavy as those of a SUV, and some of the newest models may be compatible with diesel. Some of the models can carry up to 7 seats. And if you buy them with manual transmission – something the Chevy Suburban doesn’t have, if I’m correct – you’ll save a lot more fuel that way.

So if these MPVs ever make it to the US, make sure you get them; they’re perfect for family travel.

Avi Green on August 25, 2010 at 3:26 PM

Vashta.Nerada on August 25, 2010 at 2:06 PM

MrScribbler on August 25, 2010 at 2:18 PM

Badger40 on August 25, 2010 at 2:39 PM

Thanks to each of you for for your input there.

I was sure someone else here could fill in some more of the detail that I was lacking.

listens2glenn on August 25, 2010 at 3:43 PM

This was all totally “unexpected”, unexpected I say.

This article is racist and it’s all George Bush’s fault.

BruceB on August 25, 2010 at 3:44 PM

As we couldn’t see this coming. And who does it hurt? The people who work for a living and can’t by a Beemer or Prius or volt.

The leftards want to reduce the quality of life for everyone but themselves. I hate those fkers.

Blake on August 25, 2010 at 4:01 PM

‘S okay. My ’67 Dodge goes good as does the ’86 Bronco II. Now, even in LA, people ask, “Are you selling?”

Heh

Caststeel on August 25, 2010 at 4:14 PM

di butler on August 25, 2010 at 1:57 PM
How many miles does your DeLorean have on the chassis, and how many years on the flux capacitor? I might be in the market. ;}

Dark-Star on August 25, 2010 at 2:18 PM

Unfortunately mine was not manufactured by Doc Brown, but it was one of the last rolled out, and was hand made by the employees. I love it, it is a cool car to go to certain events in, but with the way things are now, and the fact I have a huge house I can’t sell in a house-rich ATL suburb, I have an embarassment of riches, and no buyers. I want to sell everything and move back to Alabama, and I just can’t afford to.

di butler on August 25, 2010 at 4:32 PM

C4C was a huge mistake. Many dealers didn’t realize that if an C4C recipient had a government lien (child support, taxes, etc…) that the money went to the government and not the dealer. Lot’s of dealers got screwed. Many used car dealers are starving for cars specially in Louisiana and Mississippi when Katrina took approximately 250,000 cars off of the market. A used car dealer told me that 750,000 perfectly good used cars were taken off of the market by C4C.

You cannot change the law of supply and demand.

roux on August 25, 2010 at 4:45 PM

Does Hanlon’s Razor really apply to this?

I’m sure that many of us saw this outcome coming from day one.

The question is, did those behind this program also understand what would happen?

I think they did.

leereyno on August 25, 2010 at 4:55 PM

NO FREAKIN’ KIDDING!!!

We’ve been trying to find a decent beater car for our daughter who commutes from Staten Island to NJ for her job. We’re trying to save the money up to pay cash, but every time we think we’ve got it, the price spikes again.

We’re NOT going to finance this.

Mommynator on August 25, 2010 at 5:22 PM

Thank you President Obama!

/
truly unbelievable that America put you in office.

you need to take a class in the economics, business, and the law of unintended consequences.

CWforFreedom on August 25, 2010 at 6:13 PM

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