Tuesday, August 31, 2010

Cash for Clunkers a post mortem

One of the things that makes the environment greener is auto trade ins.

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.

Why?

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.

More.....

1 comment:

Anonymous said...

The law of supply and demand is a real problem for libs. Their entire global universo-goverment complex has as one of it's core beliefs that the law should be repealed. Except for one problem. The law of supply and demand is closer to a natural law than a governmental law. Cash for clunkers is such an attempt at repeal. It's like trying to repeal the law of gravity then telling the people that it's safe for people to jump off buildings because the new law makes falling illegal.