As I find information I believe will be helpful to our officers and others that read the blog, I will share it. The information that is now surfacing is very important to those who are planning to purchase a used vehicle in the near future.
As most of our readers remember, President Obama initiated the Cash for Clunkers program to help jump start the economy by encouraging the purchase of new vehicles. This program worked to a certain extent, but it has created a very negative consequence. Under the program, people that traded in used vehicles received a large government subsidy to bring the cost of the new vehicle purchase down. Under the program, the vehicles that were traded were to be destroyed. This was required to comply with Obama’s green energy program. The theory was that the vehicles that were traded in were “Gas Hogs” and the world would be a better place without them.
The issue this program has created is that the lesser expensive vehicles that some of us buy have been destroyed and the few that are left on the market have soared in price. There is more demand for these cheaper vehicles than there is a supply of them. If you follow used vehicle value sites as I do, like Kelly Blue Book (KBB.Com) you would notice the trend escalating over the past 2 years. I am not seeing the trend reverse even at this time.
Your vehicle is worth gold compared to what it would have been worth 2 years ago. It will also cost more to replace it. Instead of replacement, a theory that many are using is to extend the life of the vehicle you now have. Keep an eye on the blog for tips for extending the life of your vehicle. The used vehicle prices will come down in the future but how far in the future is anyone’s guess. It does not look like any time soon. Yale fleet mechanics will share any information they have to extend the life of your vehicle through this blog site. Please comment on the blog with questions or interests you have about this subject.