The cash for clunkers rebate was available on the condition that the gas guzzlers that were turned in for $3,500 or $4,500 must be destroyed. One of the aims of the program was to get gas guzzlers off the road, and replace them with more fuel efficient and environmentally friendly cars.
So what kinds of cars were turned in and destroyed? It''s no surprise that pickups and SUVs made up the lion''s share of these trade-ins. In fact, according to government data, approximately 83% of the clunkers traded in were pickups and SUVs. If a trade-in was worth more than $4,500, a consumer would sell it rather than trade it in under the cash for clunkers program. This means that these clunkers were the vehicles valued below $4,500.
One side effect of the program i s that thousands of pickups and SUVs in the $2,500 to $4,000 range have been removed from the used car market permanently. Since the program began in July, virtually all of the SUVs and trucks in that price range that were traded in have been destroyed. This has a huge impact on the used car market, especially in the short term.
Now that cash for clunkers is over, dealership showrooms are quiet again. In fact, many dealers have little or no inventory of the new cars that sold so well for the last few weeks, and the people who were likely to buy a new car already have. Now dealers are going to be focused on their other major market: used cars.
If you are in the market for a used car, especially one that would have qualified as a clunker, you may have trouble finding one to buy. Before you go shopping, check the website of the car dealership. Most dealerships now have their entire inventory posted on their website. This way you''ll find out if they have the truck you wan t before you get there.
