So my friend in the market for a new used Car and the prices for used cars today is directly related to all of the cars removed from service by Cash For Klunkers that removed a lot of much newer cars that were just about to hit the used car market while leaving older models which would only increase their value with the dwindling supply of used cars.

image

This 1995 model car was $4995 cash in hand, for a car that is almost 20 years old. This truck was too old for the klunker program even though it pollutes more and has a lowet mpg rating.

image

Even with new cars getting 200k miles easily, the increase in price is not justified as the wear and tear on the vehicles interior begins to show.

image

Even with only 100k miles there is no guarantee that there won’t be a major, like $2000 repair needed within the first six months.

Cash for klunkets benefitted the wealthy soccer moms who were sriver 4 or 5 year old gas guzzling super sized SUVs with crappy gas mileage for something more fuel efficient. Keep in mind that many of these trucks were bought under an earlier program that allowed businesses to realise tax incentives for purchasing these larger SUVs and trucks.

At the time gas prices were less then $2 a gallon and there is strong indication that these salea increased usage and consumption in this country leading to the current prices at the pump.

Advertisements