Used Trucks and SUVs in Short Supply

Cash for Clunkers was a great program for getting new cars sales moving. Thousands of consumers across the country traded in their 'clunkers' for brand new gas sippers. But what happened to the trade-ins?

One of the requirements for the cash for clunkers program was that the gas guzzlers that were turned in for the $3,500 or $4,500 rebate would be destroyed. Part of the intent of the program was to get gas guzzlers off the road, replaced my more fuel efficient and environmentally friendly cars.

So what kinds of cars were turned in and destroyed? It's no surprise that pickups and SUVs made up a large percent of these trade-ins. In fact, according to government data, approximately 83% of the trade-ins were SUVs and pickups. Logic tells us that these were the vehicles valued below $4,500. If they were worth more, consumers would have sold them outside the cash for clunkers program.

This means that thousands of pickups and SUVs in the $2,000 to $4,000 range have been removed from circulation permanently. Since the program began in July, virtually no trucks in this price range have been traded in but not destroyed. This has a huge impact on the used car market, especially in the short term.

Now that cash for clunkers is over, dealership showrooms are empty again. In fact, many dealers have little or no inventory of the new cars that sold so well for the last few weeks, and the people who were likely to buy a new car already have. Now dealers are going to be focused on their other major market: used cars.

If you are in the market for a used car, especially one that would have qualified as a clunker, you may have trouble finding one to buy. Before you go shopping, check the website of the car dealership. Most dealerships now have their entire inventory posted on their website. This way you'll find out if they have the truck you want before you get there.