See, I want a new car so I trade in my older but perfectly functional automobile. The lower income guy who can't afford a new car then buys my car and gets rid of his oil burning jalopy which barely runs.
Call it recycling.
But in the world of cash for clunkers, lower income guy can't buy my car because he can't afford it.
Because in the world of cash for clunkers cars like mine got destroyed causing the market for those cars to sky rocket so that Joe Sixpack can no longer afford that car.......
If buying a used car is among your cost-cutting measures...be prepared to pay up to 30-percent more than you did last year.
It is a simple case of supply and demand.
Trouble is...there are fewer used cars.
The cash-for-clunkers program took a bunch off the market.
Plus, Edmunds Senior Editor Bill Visnick says 5-million fewer new cars were sold last year...which pares down the used car supply even more.
Thanks Mr./Ms. Liberal for helping out the working guy on Main Street.