Used Car Prices Jump 30%

http://www.futureofcapitalism.com/2010/08/used-car-prices-jump-30

"Used-car prices jump by as much as 30%," is the headline over an article in USA Today. The article makes reference to "a limited supply of vehicles," but doesn't mention one big reason why: the government-mandated destruction of all those vehicles that were traded in under the "cash for clunkers" program.

Higher prices for used cars make new cars of the sort manufactured by government-owned General Motors and Chrysler more attractive by comparison. "Cash for clunkers" may have been a good deal for those who could afford a new car and get the subsidy available under the program, but, if the USA Today report on used-car prices is accurate, it has ended up hurting those who need or want to buy used cars, because they now have to pay more money. It's a reverse Robin-Hood.

by Ira Stoll  |  Aug 23, 2010 at 10:12 am Related Topics:  Auto Industry, Energy, Reverse Robin-Hood, Stimulus receive the latest by email: subscribe to the free futureofcapitalism.com mailing list