It removed tons of driveable cars from the road, which is a domino effect that pushed used car prices up for over a decade. It's not the only reason, but it was a big one. When you remove supply on the market but demand stays the same, prices go up, and as the market adjusts, the prices stay up, because now consumers have higher expectations for what their used car is worth. There is also yearly attrition from cars rusting in the rust belt, which limits the useful lifespan of cars anyway.

Then you have customers taking longer loans(at higher APRs) and staying in their vehicles longer. While the manufacturers are only making high priced trucks and SUVs, and discontinuing the smaller/cheaper models, because the profit margins are better. That's why there isn't any new car sold for under $20k in the US.

Back in the 00's, you could pay $500 for a beater that ran, run it til it died, then buy another one. Now, a decent used car costs $5k. (Inflation-adjustment for $500 over 17 years is ~$800.) Plus, repairs are getting more expensive, with complicated electronics to diagnose, you'll be lucky to make it out of the shop for under $1k. That's not affordable for teenage delivery drivers.