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Trade in clunkers ?

Do new-car buyers even drive clunkers ?

Am I driving a clunker because I cannot afford a 4 year old car ?
Will an extra $1000 trade in afford me a new car (or 14 month olf d car) ?

Update 2009 June 30:

"It has to be worth not very much and it also has to get very poor E.P.A. fuel economy," said Jack R. Nerad, the executive editorial director and market analyst for Kelley Blue Book. "It's a fairly narrow profile. You're talking about people who are probably economically challenged to begin with and they have to be able to qualify for a new car purchase in the midst of a deep recession. Those are some difficult parameters."

The case of the sad SAAB, junked with a work badge.

sad_saab_27clunkersE_large.jpg

See also at Freakonomics.

BUSINESS
Rules May Limit Cash for Clunkers Program
By NICK BUNKLEY and SARA PETERS
Published: June 27, 2009
While the U.S. law may help raise demand for new cars, it is more restrictive than a similar law that proved popular in Germany.

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