Cash For Clunkers Hurting Lower Class Car Buyers

by Warner Todd Huston | August 26, 2010 10:00 am

In yet another see-I-told-you-so moment, Obama’s cash for clunkers program is now hurting lower income folks who wish to buy used cars by driving costs up an average of $1,800 above what used car prices were at this time last year.

In August of 2009 I wrote[1] that Obama’s cash for clunkers program would “soon be materially hurting the lower middle classes” that aren’t rich enough to buy new cars. With the rule that the cars turned in under the clunkers program had to be destroyed many thousands of good, serviceable used cars were summarily removed from the used market. Fewer cars on the used market means the ones that are left will see higher prices. It’s a simple supply and demand principle here. Apparently Obama was blissfully unaware of such a simple truth.

Now a report[2] on Edmunds Daily, a car shopping advice service website, is saying that used car buyers are seeing an average of $1,800 more on their purchases. On larger-sized autos it’s even higher.

So middle and lower class Americans are almost $2,000 behind before they even decide to try and buy a used car.

Once again we see that Barack Obama is murder on the wallets of America’s middle and lower classes. Everything he does costs honest, average citizens thousands of dollars lost from their family income.

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