I think you've got it half-right: because of Cash for Clunkers, tightened lending standards, etc., used supply is down, while demand is slightly up, and the mar

I think you've got it half-right: because of Cash for Clunkers, tightened lending standards, etc., used supply is down, while demand is slightly up, and the market is now much firmer than it used to be, with less of a discount compared to buying or leasing new. At least that seems to be the case for cars in the "basic utilitarian transportation" and "entry luxury" categories.