Adding used cars to Cash for Clunkers may spur economy

According to one company, if Americans were given an incentive to buy used cars, it may help improve the economy.

CarMax is urging Congress to consider including used vehicles in the proposed Cash for Clunkers legislation in an effort to have more Americans afford a car.

The proposal legislation aims to increase new auto sales by giving consumers a voucher to trade in their older car for a new one. The amount will reportedly depend on the make or model of the car.

However, if Congress allows used cars to be included into the legislation, the thinking is that it will allow more Americans to purchase a car, thus spurring the economy. Given the popularity of hybrid vehicles, it may also help get older model cars, which may not be environmentally friendly, off the road, which is another goal of the Clunker program.

Because of the current state of the economy, many people have looked into purchasing a used car instead of opting for a new one, citing their need to save money.

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