So cash for clunkers gives you $4500 for your old car, then they destroy that old car. Now that means a whole lot less clunkers for young people to buy as their first car to get them to and from their first job. When there is less supply, demand causes prices to go up. So the clunkers that remain will cost more and young people just starting out will not be able to buy cars. I think we are going to see alot of people buying motor scooters soon just to have a cheap form of transportation. America will look like china or india with the amount of bikes/scooters that will soon be on the road.