Cash for Clunkers' Effect on the Used-Car Market
Beggs on the Market report describes it as ‘almost unreal.'
The focus on new car sales during the previous week due to the Cash for Clunkers program did not prevent consumers and dealers from buying good used cars. That is according to the Aug. 24 Beggs on the Used Car Market report from Ricky Beggs, Black Book’s vice president and managing editor.
Beggs said in the report that demand for quality late-model used inventory continues because of the lack of new car inventory and because of “the continued fact that used cars are smart retail purchases.”
In what Beggs described as “an almost unreal market,” the Cash for Clunkers program resulted in some long hours for sales professionals and finance and insurance managers, who were completing deals and paperwork. The weekend before the program came to an end on Aug. 24, the rush to take advantage of the potential $3,500 to $4,500 incentive continued.
The 10 car segments that Black Book tracks showed the largest week-over-week difference since the last week in March, with a strong change in the premium sporty car segment. The truck market showed more stable market changes. Five of the 14 truck segments showed no trend difference. Three dropped, including the luxury SUVs, compact crossovers, and full-size crossovers. The total segment average was still a stable $3 increase from the previous week for the total 14 segments.
The direction of daily vehicle adjustments was mostly on the positive side, with a solid 332 daily changes. Seventy-two percent of clean condition adjustments increased at an average amount of just over $193. Those that were adjusted downward dropped $182. But due to the volumes, the overall average came in a very positive $88.
Beggs concluded by saying the lack of supply of used inventory continues to be the driver of the strength in values and auction activity and sales conversion rates at the auctions. He said that while attending the International Automotive Remarketers Alliance Summer Roundtable, he asked one remarketer if he wished he had more units to sell with the prices being so strong. The remarketer’s response: “No, if I had more, everyone else would have more, the supply would be greater and then the prices wouldn’t be as strong.”
More Rental Operations

Green Motion Expands Into Japan With Master Franchise Agreement
Japan's tourism industry, business travel market, and demand for vehicle rental services are reasons the country represents an important market for the company.
Read More →
ACRA Carrying Fuller Industry Load As AI and EVs Lurk In Future
The leading car rental professional business group details an active legislative, regulatory, and macro-trends agenda affecting car rental operators.
Read More →
World Cup Travel Data Shows Longer Car Rentals and More One-Ways
A recent analysis of FIFA bookings found varied demand patterns that influenced rental car pricing.
Read More →
A Leveling Force: AI Morphs Into A Rental Car Profit-Seeker
Revenue managers can’t match the emerging AI tools gobbling lots of data that could counter the competitive race to the rate bottom.
Read More →Stop Losing Money On Rental Tolls
Regardless of your rental fleet size and structure, fleet managers, executives, and owners can gain valuable insights into an often-overlooked area of fleet operations.
Read More →
Rethink The Future To Avert A Race To The Bottom
Rental car operators heard a sobering industry message and a stern challenge at the close of the International Car Rental Show.
Read More →
DriveItAway, Free2move Plan Shared Fleet Program for Independent Rental Fleet Operators
Vehicles would be placed with participating rental operations to support car renter demand and provide additional fleet capacity.
Read More →
Stellantis Recalls 1.3 Million Jeep Vehicles Worldwide Over Fire Risk
Stellantis is recalling more than 1.3 million Jeep Wrangler and Gladiator models worldwide over a fire risk linked to power steering pump wiring.
Read More →
Green Motion And U-Save Open Rental Operations In Guatemala
The brands will open their first rental car outlets in the country at La Aurora International Airport in Guatemala City.
Read More →
U.S. Business Travel Drives $623 Billion+ in Economic Impact as Spending Reaches $538 Billion
The data also underscores the industry’s strong multiplier effect across the U.S. economy, revealing that each dollar invested in business travel in 2024 generated $1.16 in GDP.
Read More →
