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In short, the cash for clunkers initiative made used car stock plummet. This lead to used car prices going up.

At least, I think that's what GP is hinting at.

Cash for clunkers pulled lots of used cars off the market but my understanding is plummeting manufacturing of new cars after the financial crisis was responsible for a much higher percentage of the gain.

Cash for clunkers pulled like 700k out of the market.

The auto industry was making millions less cars and trucks per year from 2008-2012.

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