Capital Stock Destroyed
$2.89B
Functional vehicle wealth liquidated
Budget Used-Car Price Shift
+18.5%
Under-$8k vehicle price inflation
Low-Income Buyer Loss
$1,420M
Consumer surplus deadweight loss
Net Stimulus Multiplier
0.42x
Net economic activity per $1 spent
Used Car Market Shift ($2k–$8k Budget Tier)
Baseline Supply
Scrapped Supply Shift
Market Demand
Surplus Deadweight Loss
Vehicle Fleet Capital Lifespan vs Fuel Efficiency
Destroyed Vehicle-Years
Carbon Savings Offset
New Vehicle Manufacturing Deficit

Microeconomic Mechanics & Fleet Destruction

Under the 2009 CARS Act, mechanics poured sodium silicate solution into engine blocks to permanently destroy traded-in working vehicles. This directly removed 690,000 usable low-cost vehicles from the budget market. While fuel efficiency gained an average of 2.4 MPG, destroying working vehicle capital shifted supply sharply upward, causing a 18.5% price spike in the budget used vehicle segment and transferring financial burden onto low-income buyers.