The Jury Talks Back

8/5/2009

Used Car Prices Rising?

Filed under: Uncategorized — Amphipolis @ 9:35 am

One aspect of the cash for clunkers program that I have not seen discussed is the effect it will have on used car prices. With all of those used cars being destroyed it stands to reason that used cars will become more scarce and prices will rise. I would expect this to be another unintended consequence.

The people who need help the most are not the people in the market for a new car and they are not the people who are concerned about bad gas mileage.

1 Comment

  1. That is a logical deduction. Government attempts to game the free market usually have such consequences. The laws are usually passed by legislators with little understanding of economics. I’ll look around to see if this is taking place.

    Comment by Brother Bradley J. Fikes, C.O.R. — 8/9/2009 @ 7:55 am

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