Cash For Clunkers Artificially Inflates Used Car Prices By 10%
Read it and weep from Edmunds.com:
Car buyers on average paid $1,800 more for a used vehicle in July than they paid a year ago at this time, according to Edmunds.com data. That's a 10.3 percent increase, bringing the average cost of a 3-year-old vehicle to $19,248. The price of a Cadillac Escalade spiked nearly 36 percent. "A lack of confidence in the economy is driving more people to used cars, putting upward pricing pressure on a limited supply of vehicles," said Joe Spina, a senior analyst for Edmunds.
There's a tricky aspect to this analysis, because last summer was marked by a used-car buying frenzy spawned by the Cash for Clunkers program. Spina said the effects of that program are hard to isolate precisely. "So many economic factors affect automobile sales and prices. It's believed that the program delayed purchases prior to the program and also pulled sales forward while in place," he said. "The program also eliminated inventory of older vehicles that were traded and then scrapped." After the jump, take a look at the vehicles whose prices moved the most this July. The model years have been averaged. You can also get some advice on how to proceed in a (relatively) pricey used-car market.
Well shit, there's our solution to the housing problem! I vote for Cash for McMansions: let Bernanke put on his firefighter outfit and burn 'em all down in exchange for a $5000 credit towards a brand spanking new 30-year commitment to a new crib. That'll clear out all that dead inventory and sucker America is just stupid enough to fall for it if they can afford it.
Thanks a lot, Obama, you priced all the broke asses out of the used car market. Way to go, jackass! Was a $2000 jump in prices worth the $4000 Cash for Clunkers trade-in? Not by my math but this is a God damn economic recovery we're trying to manufacture so what does math have to do with any of it?
Sorry, Japan, we couldn't compete with your long-lived engines and superior manufacturing so instead we just killed all those 1993 Toyotas that wouldn't die with the hopes that we could force America back into Fords that'll die in about 5 years anyway. Viva la recovery!