Many smaller car dealerships can't afford brand-new cars, so in order to stay afloat, they rely on older used cars to sell. The Cash for Clunkers program caused many of the cars that these dealerships depend on to be destroyed and sold for scrap. The program got rid of up to 750,000 used vehicles, and many of these cars were still functioning. The destruction of these cars caused the supply of these still useful vehicles to drop significantly. Because the supply is has gotten lower, and the demand is the same, if not higher, the price for these cars has risen and not as any small dealerships can stay in business anymore. Even if a dealership can afford to buy these cars, they will still have to sell the cars at a higher price.
Because fewer
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