A lot of folks pointed out that the cheerleaders for the Cash for Clunkers program were ignoring the inevitable negative impact of destroying older cars and reducing the number available. But the cheerleaders covered their ears and eyes and forged ahead with misguided government intervention into the marketplace. Now comes the reality of Cash for Clunkers for low-income Americans who desperately need the economic and social empowerment that comes with having a reliable vehicle to get to and from work, school, doctors, and family — the empowerment that does not come with public transportation.
If anything, the government has hindered the working poor’s access to cars. The 2009 Cash-for-Clunkers program, for example, put 690,000 running vehicles in the junkyard, making the used cars that remained more expensive.
“Those cars could have been used for very needy working-class families,” said Carolyn Hayden, a Glendarden, Md., transportation consultant. “It will go down in the annals as a missed opportunity.”
The lack of alternatives drives millions of families into the arms of Buy Here Pay Here dealers, known for selling used cars at stiff markups and with high-interest loans. Many of the buyers eventually default, and the dealers repossess the vehicles and often put them back up for sale. Dealers sometimes sell the same car again and again.
