No Cash for American ClunkersThursday, October 1, 2009
Apropos my article on Cash for Clunkers from yesterday, here’s some follow-up to support my points. September sales for GM were down 45% and and for Chrysler the number was 42%. When the government stopped subsidizing the purchase of cars, people stopped purchasing them – a point made very clear in my article. I also pointed out the distortion in the used car market. Yesterday the Wall Street Journal reported on the rise in prices of used automobiles – that is, the ones left over that weren’t destroyed by government decree:
One widely followed measure of used-car prices, the 14-year-old Manheim Used Vehicle Value Index, will likely hit a record when data for September are released in early October, says Thomas Webb, chief economist for Manheim Consulting, a subsidiary of Cox Enterprises Inc.