Clunkers program boosts price for used cars
By RMI Staff 
| August 13, 2009 | 10:42 AM
The Steamboat Pilot & Today notes another unintended consequence of the “Cash for Clunkers” has emerged in recent days. Because the cars traded in under the program must have their engine disabled — other parts of the car can be recycled — the pool of used cars is shrinking. This has resulted in a spike in the price for used cars:
Used cars are selling at auctions for $2,000 more than their book price, said Jeff Steinke, general manager of Steamboat Motors. That could hurt people who don’t have the money to buy costlier cars, said Tom Reuter, who owns Checkpoint Auto Sales.
Steinke said he had picked up few used cars lately because of the price increase.
“Trucks that were $5,000 to $7,000 (less than) book last summer when gas was high are now going for a couple grand over book,” Steinke said. “That’s a $7,000 to $9,000 swing over a year. It’s just odd right now.”
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cars, cash for clunkers, steamboat, used cars
