Cash for Clunkers draining markets

A few months back the government’s popular Cash for Clunkers program was embrace by the public and ended up being a huge success. While the initial program sent new car sales soaring, it also created scarcity of vehicles, hurting retailers, car hire, van hire agencies, and a number of other private sectors that relied on streams of vehicles.

According to Manheim Consulting, a group that analyzes car trends, used vehicle sales went up 6.9 percent in September alone.

“Typically dealers go to factory sales and auctions to purchase their cars. With that supply line drying up it’s made the used car market much more explosive as face as what prices are doing.”