What is Cash for Clunkers do to my used car value?
I have a 2005 Toyota Corolla LE. Since there will be more new cars out there, will my car depreciate more because it is not newer?
The fact is that the cash for clunkers program has taken a lot of serviceable used cars out of the market. When supply is reduced, prices usually go up. Right now the market is still soft, because of the Obama recession. There are fewer people willing or able to spend money, and the larger than normal amount of repossessed vehicles is increasing supply some.
My best guess is that the clunkers program will not hurt your resale value, and may actually help it a bit.
