Another unintended consequence of the Cash for Clunkers debacle

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After Cash for Clunkers, higher prices

If you were one of the nearly 700,000 people who were able to cash in on the Cash for Clunkers program, congratulations, you probably got a good deal. On the other hand, if you bought a car without a clunker in the last month, you’ve overpaid.

Prices for cars during the Clunkers program went up for everyone. But buyers who used the program on average did about $3,000 better than those that did not. And if you absolutely have to buy a vehicle in the next two months, you’ll most likely pay more to get the same car.

It’s a simple matter of supply and demand. The wildly successful Cash for Clunkers program has thrown things out of whack. For the next couple of months, usually peak car buying season, inventories will be low and car shoppers should expect higher prices and fewer choices, experts say.

Because of the counterfeit money printed up by the Banksters to fuel this “boom” in car sales, it’s difficult to predict exactly what will happen during the coming “new car” season. Depending on how many people already bought new cars who wanted one due to the Cash for Clunkers program, it’s possible that although the supply of new cars may be smaller than usual, the remaining demand for new cars may be smaller too.

[Thanks to Victor Bozzo]

3:31 pm on August 29, 2009