Is there yet another glitch in the CARS program strategy? Auto recyclers are concerned over the mandate that clunker parts be destroyed, saying used engines and powertrains are a big part of their auto scrapping income, and some parts are needed as spare parts as the supply chain dwindles.
Edmunds.com tracked the correlation between mileage on trade-ins and unemployment for the past 18 months.
Small businesses are struggling in the poor economy so buying new vehicles to lower operating costs could be difficult. The government "cash for clunkers" program could provide a $4,500 discount for a gas-guzzling delivery/service vehicle when upgrading to Ford's new Transit Connect.
Sonic Automotive reports sales of 19,449 used units during the second quarter, up 12.8 percent from last year and 20 percent over the first quarter. Long-term strategy put in place two years ago is paying off, including patient application of technique and technology.
High mileage is the number one cause of perceived depreciation followed by damage and failure to maintain vehicles. Retailer CarMax offers free appraisals and buys vehicles without making a sale.