Monday, November 02, 2009

Cash for Clunkers was an even bigger disaster

than we first thought. Not only did it cost taxpayers $24,000 for each additional car purchased, it drove up the cost of low end used cars, the same low end used cars purchased by low income buyers. Thank You Congress!!

Dieroff blames the shortage of inexpensive used cars on the federal cash-for-clunkers program, in which almost 700,000 used vehicles were traded in for newer, more fuel-efficient vehicles, and then scrapped.

Those clunkers were the cars Dieroff and her husband, Jason Boyer, would have been shopping for, they said.

"I saw the cars they were putting in the junkyard, and they were better than what we're driving now," Boyer said.

Some local used car dealers specializing in vehicles priced $5,000 and under agreed that there are fewer inexpensive vehicles available.