[raybbr]

...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.

[November 2010]

In all sincerity, with no insult intended, 20 minutes learning about basic supply and demand will open up a new world for you in understanding how the world works. Demand “curves” and supply “curves” have different slopes. So a small increase or decrease in supply can have drastic effects on demand and price, or vice versa depending on the slope. You can move along the curve or the curve itself can move! So you can have situations where a change in price will end all demand, a small change in price can skyrocket demand, etc.

It’s really useful, fun, and logical stuff.