According to The Columbus Dispatch, “The lack of supply stems from the economic downturn. Automakers sold fewer new cars, which means that fewer recent models are out there to be traded in.”
The article fails to mention the Cash for Clunkers program and its desired result of a reduced supply of used cars.
According to the chart (right) in the paper, used car prices rebounded before the program began. But some of the later rise has to be attributed to 650,000 less used cars on the market due to the 2009 program, regardless the paper’s silence on the matter.