Cash for Clunkers Pushes Up Used Car Prices

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I was waited to see if anyone would notice. USA Today gets the prize. It was pretty much inevitable that there would be a rise in used car prices following the C4C program. If you require that 900,000 trade-ins get destroyed rather than being resold, this has to create somewhat of a shortage in the used car market. It's remarkable that no one seemed to have noticed (there were big jumps in used car prices in the CPI for both August and September).

--Dean Baker

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