Cash for clunkers picks winners and losers

Christopher Alleva and Michael Geer
The unfair market advantage produced by the Cash For Clunkers program is notable, yet seems to draw no scrutiny. Government meddling with the market has dramatic advantages for a few car dealers and shuts others out completely. No level playing field. 

New car dealerships don't make nearly as much profit per car on new cars as they do on previously owned cars. The margin on used cars is substantially more. 

But ... a 100% used car operation has no Cash For Clunkers funding available to them. The new car dealers do ... even our foreign competition .... but the used dealers do not. Right now
Cash For Clunkers is drawing in buyers to new car dealers like flies to horse apples. It's lopsided market dynamics, like government sponsored marketing and advertising. 

Take a substantial operation like this ...

Carville's used auto sales Contact Form - great used cars in Grand Junction Colorado


Or ...

Rocky's Autos : Inventory


... which are doing yeoman's work moving inventory off the lot, inventory that's already in existence, and they cannot compete with the market advantage now held by New Car Dealers with used car operations who have Cash For Clunkers to het people in the door. 

Think anyone in the Obama Administration cares, or even knows? 
The unfair market advantage produced by the Cash For Clunkers program is notable, yet seems to draw no scrutiny. Government meddling with the market has dramatic advantages for a few car dealers and shuts others out completely. No level playing field. 

New car dealerships don't make nearly as much profit per car on new cars as they do on previously owned cars. The margin on used cars is substantially more. 

But ... a 100% used car operation has no Cash For Clunkers funding available to them. The new car dealers do ... even our foreign competition .... but the used dealers do not. Right now
Cash For Clunkers is drawing in buyers to new car dealers like flies to horse apples. It's lopsided market dynamics, like government sponsored marketing and advertising. 

Take a substantial operation like this ...

Carville's used auto sales Contact Form - great used cars in Grand Junction Colorado


Or ...

Rocky's Autos : Inventory


... which are doing yeoman's work moving inventory off the lot, inventory that's already in existence, and they cannot compete with the market advantage now held by New Car Dealers with used car operations who have Cash For Clunkers to het people in the door. 

Think anyone in the Obama Administration cares, or even knows?