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Why used cars are scarce – and expensive

Home - by - February 23, 2013 - 21:00 America/New_York - 21 Comments

American  Thinker

Yes, Obama’s Cash for Clunkers program is definitely one reason used cars are in increasingly scarce supply– and much pricier than they used to be. But another reason relates to something liberals despise: “trickle down” economics or, in respect to the increasing scarcity of used cars, the fact that low-income used car buyers do better when wealthier Americans (those who can afford new cars) do better.

The reason used cars have gotten increasingly scarce and expensive is the subject of a Wall Street Journal article, “Amid New Car Boom, Used Cars Are Gold.” Its observations are illuminating:

The shortage of used cars stems from the deep plunge in new-car sales between 2008 and 2010, and the virtual disappearance of new-car leases during the financial crisis. As a result, three-year-old cars are now hard to find and even older models are holding their value.

Another factor is a change by the three Detroit U.S. auto makers. To keep factories humming, they once leased tens of thousands of new cars to rental car fleets and then moved them onto dealer lots as used models after a few months.

There are fewer of those vehicles because manufacturers cut excess production capacity in recent years. Cash-for-clunkers rebates also took many older vehicles off the road.

The scarcity has pushed up used car prices, often to the point that consumers who finance a purchase with subsidized interest rates can get brand new vehicles for about the same as a monthly payment required for a late-model used car.

Read more: http://www.americanthinker.com/blog/2013/02/why_used_cars_are_scarce_-_and_expensive.html#ixzz2LhD2kN7c
 

» 21 Comments

  1. Used car?

    February 23rd, 2013

    I’m not buying a car someone else has used. That’s disgusting, people are filthy. Add kids and dogs, used cars are a petrie dish on wheels. I’m not rich, but come on;a used car ewww.
    So, this would affect poor people, nice job OBAMA

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  2. Jethro

    February 23rd, 2013

    I pulled a front axle out of a grand cherokee at a junkyard in the fall of 2010, right after “cash for clunkers” There was a line of them with CFC painted across the windshields, all in fine condition except where their engines were filled with epoxy to ruin them so they couldn’t be salvaged.
    Sad…

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  3. thirdtwin

    February 23rd, 2013

    Hunh…Cuba is headed in the other direction.

    Castro for Clunkers?

    http://www.reuters.com/article/2011/09/29/uk-cuba-cars-idUSLNE78S01I20110929

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  4. Billy Fuster

    February 23rd, 2013

    Cash for clunkers – - the broken window fallacy in action.

    Thumb up +6

     
  5. Dan Ryan Galt

    February 23rd, 2013

    Central Planing=Cash for Clunkers- How the heck do they expect the average citizen to be able to afford a new car? Once again the government that swears it wants to help the little guy has screwed him over.

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  6. Anonymous

    February 23rd, 2013

    “Nice job OBAMA”??!!

    How come Sheeple are not to blame? Were the sheeple FORCED to turn in perfectly good cars?

    Here’s a wake up for ya, sheeples:

    When the “system” wants you to go left, don’t do it.

    Noteworthy Comment Thumb up +10

     
  7. thirdtwin

    February 23rd, 2013

    I hear ya, Used Car. This makes me optimistic about selling my 2004 Honda Odyssey, which has been rode hard and put up wet, to say the least. Anything that plodding, socialist dickbag Obama does to inadvertently help me out will be taken advantage of whenever possible.

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  8. @ Jethro

    February 23rd, 2013

    I pulled a front axle out of a grand cherokee at a junkyard in the fall of 2010.
    ^^^^^^^^^^^^^^^^^^^^^^^^^^
    You did not finish the story. Why would you do that? Whose
    GC was it? We’re you mad at them? Did you keep it or give it back?

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  9. Chief

    February 23rd, 2013

    Two words about used cars

    Boogers.

    Farts.

    I rest my case.

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  10. Cruisin Cat

    February 23rd, 2013

    On the plus side, cash for clunkers got a lot of “Obama/Biden” stickers off the road…

    Thumb up +6

     
  11. bitterclinger

    February 23rd, 2013

    You guys down on used cars need to lighten up. We’re in the market and are looking at demos/program cars that are 2012′s and about $5K less than the orig. sticker. The one we’re considering has fewer than 10K miles on it.

    So, technically, it’s used, but no single individual beat it up, smoked in it or had his dog in it. Looked new to me.

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  12. Unruly Refugee

    February 23rd, 2013

    My truck is 16 years old and I wouldn’t trade it for a new one. When something wears out I can fix it myself, computer system is simple, and the gas mileage is 24 mpg highway fully loaded — full size pick up with a camper.

    Phuck 0bama!

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  13. Chief

    February 23rd, 2013

    I picked up a 7 series with 19k miles on it for $23k less than when it was new 19 months earlier. I was turning 40 and I used it to my advantage with my lovely wife.

    So at least that time I got over the boogers and farts.

    But George Bush was President then. There was a reason for optimism then.

    Still have the car though. Hard to imagine ever having the dough or the cajones to buy a 7 series again. So I’m babying this one.

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  14. orbitup

    February 23rd, 2013

    Not too long after the economy took a shit the banks tightened up their sub-prime lending. That lead to a shortage of available repos. There are more out there now, but the prices are currently high because ‘refund season’ just started.

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  15. Cruisin Cat

    February 24th, 2013

    Some credit unions have repo lists on their website. You can get better deals there than on a used car lot, 7 if you’re a m,ember, get it financed for less, too.

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  16. Saw this on TopGear

    February 24th, 2013

    They had a forensic team swab used cars. Found a lot of vaginal fluid and urine and spit and semen.
    I guess it could be cleaned.

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  17. Edith McCrotch

    February 24th, 2013

    HA ! Still got my ’03 KIA..runs smooth as…well maybe not that smooth, but runnin’ better than a wheelbarrow over a rock pile.

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  18. Jeff Weimer

    February 24th, 2013

    I ended up buying new instead of used in Dec ’11 because the used prices were so high and new financing so low my payment was less with the new car. AND I got the full warranty.

    It’s crazy – 10 year old Honda Civics are going for $8-10K. Thrashed.

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  19. Sarge

    February 24th, 2013

    I’ve got two old cars that run just fine, ’96 Maxima and ’02 Civic, both looks similar to the current models. Why spend the money just to get the new car smell?

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  20. Mr.Gates

    February 24th, 2013

    “Liberalism always produces the exact opposite of its stated intent.” – Jim Quinn

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  21. Racist

    February 24th, 2013

    Well screw you uppity s.o.b.s! Since my bizwent down the crapper and took everything I ever accumulated with it, I’m now driving a 95 Blazer that I paid $500 for off of Craigslist. And it was nasty, it had dirt and dust 3″ thick when I got it a couple months ago. But I went my scrawney ass to cleaning on it, and was mighty thankful to get it! So 5 yrs from now when y’all are still making payments on a piece of crap that you probably don’t even have anymore, I’ll be using that $500mo to put gas in my $500cash dirty fart-smelling Blazer!

    And as far as the story, I have been looking for weeks for a 1/2 way decent used car for my wife, and I swear it’s like the price has doubled in the last 6 months!

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