Cash For Clunkers; Screw the Poor
Via Doug Mataconis, Jaybird gets to eat a nice big plate of “I Told You So” over Cash-For-Clunkers.
Says the article:
In his 20 years in the business, salesman Mark Sauer has never had a tougher time finding inexpensive used cars.
“It’s never been this bad,” said Sauer, buyer and sales manager of Vaccaro’s Auto Buyers of Reading, 805 Hiesters Lane.
The trend is occurring nationally as well.
The Manheim Used Vehicle Value Index reported that prices reached record highs in September. The consulting firm that publishes the index blamed low inventories.
That’s bad news in Berks, where many shoppers seek inexpensive, used vehicles, especially during difficult economic times, said George Tabakelis, general manager of Perry Auto Service & Sales on Route 61 in Perry Township.
“You used to be able to find a decent car for $2,500, and you can’t anymore, especially in the past two months,” said Arie Garcia, the association’s office manager.
Another problem is that used-vehicle prices have quickly risen above their book values, making it tougher for customers to secure financing, Garcia said.
“Cash for clunkers really hurt the used-car industry,” she said. “I think it hurt more people than it helped.”
Hooray for stimulus!