Posted on 09/08/2009 9:21:57 PM PDT by worrywart
MONTGOMERY | The popular Cash for Clunkers program helped new car dealers, but it is dramatically raising the price of relatively inexpensive used cars, hurting the poor, dealers say.
The Car Allowance Rebate System, commonly called Cash for Clunkers, took 690,000 operable cars out of the market, which is beginning to reflect effects of the shortage.
A smaller supply of used cars over the next six months will affect the auto parts market that lower-income drivers and hobbyists rely on to keep their older cars running.
Ronnie Watkins is a Ford dealer in Gadsden. He said he told his car buyers not to even attend a recent auto auction for used cars because prices have gone up.
“I bought 20 Ford Fusions from a wholesaler about 3 weeks ago,” Watkins said. “This car has now gone up over $1,000.”
(Excerpt) Read more at tuscaloosanews.com ...
ww
Obama’s nemesis- Supply and Demand.
Hey, something finally works out for me! I am thinking of selling my little car and getting a vehicle more suited for toting my 2 large dogs. Maybe even a gas guzzler! ;-)
Actually it’s econ 101, the more you reduce the supply of a product, the higher the price. Demand could also be reduced, but if not at same pace as supply, price will go up. Then again, this is the same group of geniuses that said unemployment would go up to 8% with the stimulus.
I predicted this when I first heard of this program. Unintended consequences when the government meddles with supply and demand.
The list, ping
Only a lib didn’t see this coming. So, folks of limited means who are looking for a good used car get screwed by Bamster.
Another dumb decision by Obama!
Screw the Commie. I’ve had the same Toyota for 18 years.
ping.
Is the Fusion on the clunker list? This morning I saw a Taurus with a $1800 windshield price on it.
That’s one BIG DUH!!!
I wouldn't say unintended. The consequences are inconsequential to them. They don't care one way or another, just like they never cared one way or another for all the other failed programs from the past 50 years. This is about spending public money while appearing to do good.
Some folks aver that if the $3B blown on C4C had been directed to NASA, we could put another American on the moon soon.
Not to worry. Obeyme will probably introduce legislation putting a cap on the amount of money someone can sell a used car for. All is well.
Next week The Messiah will announce his Clunker Czar, perhaps Jammy Cahtah.
Is there anything that leftist won’t screw up???
Go away leftists. Just GO AWAY and let this country heal and get better.
I tend to ignore propaganda coming out of the home of UAT, but this piece I totally agree with.
“Screw the Commie. I’ve had the same Toyota for 18 years.”
My Accord turned three yesterday. I’ll keep it til The One is The History.
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