Did you participate in Cash-for-clunkers

[mp775]

Originally Posted by joee5

Didn't participate but tried to obtain a 1978 Firebird someone traded in during that period before the engine was destroyed. Dealership told me they weren't allowed to.

Only 1984 and newer cars were eligible to be traded in. Maybe there was another reason the car wasn't for sale.

[mp775]

Originally Posted by kapikap

c4c removed and virtually eliminated future classics. Basically killed of the 80s and 90s.

Unless there's going to be some major nostalgia for Ford Explorers and Dodge Grand Caravans in a few years, I don't think the future classic market has suffered much.

[urbex]

Originally Posted by jackmccullough

I keep hearing people say that Cash for Clunkers is still responsible for driving up the prices of used cars today. I question how this could be true.

It drove up the prices of the CHEAP used cars - the cars that were say $2500 and less, and especially the sub $1000 cars. Before CFC, I could find driveable cars for $500 all day long. Sure, the cosmetics were absolutely trashed, AC didn't work, etc, but for someone between a rock and hard place, it was still transportation that went from point A to point B.

Then CFC came around, and suddenly that $500 car became a $4000 car, because the owner could get that much from the dealer on a trade in. It didn't matter whether the car was eligible or not, or even if the owner had any intention of using it as a trade in, because most people just "know" that they could get $4500 from the CFC program for any old car. Several years later, the prices did start to come down, but not to pre-CFC levels. In addition, several states have their own CFC style programs that are still active today, which will have similar effects on the used car market pricing.

All that said, I doubt that CFC had much, if any, effect on prices of used cars in the, say, $20K+ market.

[corolla5speed]

Originally Posted by urbex

It drove up the prices of the CHEAP used cars - the cars that were say $2500 and less, and especially the sub $1000 cars. Before CFC, I could find driveable cars for $500 all day long. Sure, the cosmetics were absolutely trashed, AC didn't work, etc, but for someone between a rock and hard place, it was still transportation that went from point A to point B.

Then CFC came around, and suddenly that $500 car became a $4000 car, because the owner could get that much from the dealer on a trade in. It didn't matter whether the car was eligible or not, or even if the owner had any intention of using it as a trade in, because most people just "know" that they could get $4500 from the CFC program for any old car. Several years later, the prices did start to come down, but not to pre-CFC levels. In addition, several states have their own CFC style programs that are still active today, which will have similar effects on the used car market pricing.

All that said, I doubt that CFC had much, if any, effect on prices of used cars in the, say, $20K+ market.

So who won in the end? Did anyone benefit? Many other things changed in the car market environment around that time such as interest rates dropping, fuel mileage increasing, car price increases, longer car longevity, etc, etc. What do you think, does it all balance out?

[urbex]

Originally Posted by corolla5speed

So who won in the end? Did anyone benefit? Many other things changed in the car market environment around that time such as interest rates dropping, fuel mileage increasing, car price increases, longer car longevity, etc, etc. What do you think, does it all balance out?

Yeah...Japanese car makers