MADISON, Wis. (WTAQ) - It’s been over a year since the federal “Cash for Clunkers” program gave a boost to new car sales.
But now, some are blaming the program for a shortage of high-quality used cars. “Cash for Clunkers” offered up to $4,500 toward the purchase of a new energy-efficient vehicle, in exchange a for lower-mileage vehicles from 2003 and earlier.
Those older engines had to be destroyed. And Patrick Rogalla, the sales manager for a large used car outlet in Middleton, said it pained him to see so many quality used cars waiting to be destroyed outside dealer showrooms. He said it would have been better to sell those vehicles to those with even older, less efficient cars that are still on the road.
Edmunds.Com says the average price of a used car rose by over 10 percent in the last year. Another Madison dealer blames fewer trade-ins, as people hold onto their cars longer due to the economy.
Dealers say used car sales are up, as cash-strapped buyers choose them for over new cars. Also, industry leaders say SUV sales are up as gas prices have dropped since their record highs in 2008.
