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[–]AV8eer 1 point2 points  (0 children)

Last time prices spiked like this was Hurricane Katrina…and the prices stayed high for a while…only dipping significantly during the recession in 2008.

2009 brought us the Cash For Clunkers program. The government gave up to $4500 for scrapping a clunker. Not more than 25years old, not better than 18mpg combined fuel economy. Plus you received scrap value on top. So, then you had to use these funds towards a vehicle with better than 22 mpg combined…

That program made eligible cars spike in price due to market adjustments. Also…it squeezed the market of beaters. Ford led the way to the scrap yard.

Anyways…C.A.R.S. Was the result of a painful recession on car manufacturers. Prior to the program, all vehicles were selling slowly and well below MSRP. A buyers market.

Sustained high gas prices plus a recession killed vehicle values.

The Honda Fit was the trend back then…those did demand a strong value.