great article
People love free stuff so much that they seem to ignore the various negative externalities of C4C, including increased dealer negotiation leverage…
“This taxpayer money simply enabled the dealers to avoid having to offer discounts off sticker prices and to extract higher profit margins than they would have otherwise obtained on the qualifying new cars. The program proved so popular that inventories of the qualifying cars soon dwindled, further boosting the dealers’ negotiating leverage and unit profit margin.”
