Im not going to deny that it was a terrible program, but I think you are putting too much value on a lot of those terrible cars that were taken off the road. They were a mix of mostly unreliable, unsafe and just plain terrible vehicles. Heck some of them were all 3.

According to sources, there were 193 million vehicles registered on the road in 2009, those cash for clunkers only removed like .4% of that. That still left plenty of vehicles out there, heck used car prices continued to decrease in the years right after the program, something that wouldn't have happened if supply was indeed short.