End of The Used Car Market?
Did Obama announce the end of used cars?
In his speech about the GM bankruptcy yesterday, President Barack Obama (from the New York Times) said:
And that’s why I’m calling on Congress to pass fleet modernization legislation that can provide a credit to consumers who turn in old cars and purchase cleaner, more fuel-efficient cars. (emphasis added)
Turn in old cars. It’s long been a talking point of liberals and environmentalists that cars older than a given age should be removed from the highways. The usual mantra goes “The government should buy all cars older than X and pay the owner $750. Then the owner could go out and buy a newer, cleaner, more efficient car.” The advocates for this position either fail or refuse to understand that the owners will not be able to find a car to buy with their $750. Basic economics.
President Obama used the words “turn in” not “trade in.” He will give folks a credit - I suppose that means an income tax credit - for doing this. This sounds like the used cars will go to the government and be removed from the market. No more used cars. You either buy an expensive putt-putt new car, or you go without. It appears that he’s set out to destroy the used car market?
