Tough Time Finding an Affordable Car? Thank Obama’s Destruction of 680k Working Vehicles in 2009

Former President Barack Obama’s administration paid Americans to destroy nearly 680,000 functioning vehicles in 2009, permanently removing cars from the road as today’s buyers confront a shrinking supply of affordable transportation and mounting auto debt.

The $2.85 billion Cash for Clunkers program offered motorists thousands of dollars toward new vehicles in exchange for surrendering older cars and trucks for destruction. While the initiative helped boost automobile sales during the Great Recession, it also eliminated drivable vehicles that could have provided affordable transportation for budget-conscious buyers.

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Inventory in that price category declined 16.2% year over year, even as overall used-vehicle inventory increased.

The average used-vehicle listing price reached $27,235 in September, its highest level since December 2022, according to Cox Automotive. Meanwhile, monthly payments averaged $765 for new vehicles and $542 for used vehicles during the second quarter of 2026, according to Experian.

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Approximately 85% of the vehicles surrendered were trucks, SUVs or other qualifying light trucks, many of which remained operational when they entered the program. Their mandatory destruction prevented those vehicles from being resold as inexpensive transportation, removing potential options for first-time buyers and lower-income Americans unable to afford new cars.

Used-car dealership representatives told the GAO that prices for vehicles at least ten years old increased during the program. However, they cautioned that the recession was also constraining used-vehicle supplies, making the program’s independent effect difficult to determine.

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The Specialty Equipment Market Association warned that the program threatened auto restorers, repair shops and hobbyists who relied on older vehicles for replacement components. Other parts could be salvaged, and vehicles at least 25 years old were exempted from the program.

Research also questioned the initiative’s broader economic benefits. Economists Atif Mian and Amir Sufi found that Cash for Clunkers generated approximately 360,000 additional vehicle purchases during July and August 2009, but almost all of those purchases were offset by reduced buying in subsequent months.

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Meanwhile, outstanding American auto debt reached $1.713 trillion during the second quarter of 2026, according to the Federal Reserve Bank of New York. Its report showed the annualized share of auto-loan balances entering serious delinquency rose to 3.00%, compared with 2.93% a year earlier.

(*) Full article: https://www.westernjournal.com/tough-time-finding-affordable-car-thank-obamas-destruction-680k-working-vehicles-2009/?utm_campaign=superfeed&utm_medium=superfeed&utm_source=superfeed