Cash For Clunkers and used car prices

According to a report on 11Alive.com it seems that despite the current economy used car sales haven’t really been affected as much as many thought the Cash for Clunkers scheme would affect the used car market.

According to James Thomas who works for Auto Plaza in Doraville, he says that whilst a lot of people are using the Cash for Clunkers scheme to purchase brand new cars he still sees a lot of people buying more affordable vehicles.

Although customers get a $4,500 discount towards a new vehicle, quite often they will be signing up to monthly payments to payoff the rest of the car. Thomas says “I’d just tell people ‘if you can’t afford a car payment now, why even create one’,”.

Do you feel that some people see all the pros of the Cash for Clunkers, however overlook the long term picture?