“In truth, this program launched at the worst possible time of the year,” suggested Jeremy Anwyl, chief executive officer of Edmunds.com. 
Although many consumers have rushed  to take advantage of Cash for Clunkers, many are actually paying higher prices in the midst of the CARS “frenzy,” according to Edmunds.com. 

“Since the program launched, we’ve seen that shoppers are getting less of a discount off sticker price for new cars,” explained senior analyst Michelle Krebs on Edmunds’ AutoObserver.com. 
“The annual summer sell-down typically creates a rush of activity for the industry, and this year that rush came right after automakers cut production in response to the floundering economy,” he added. 

“It’s a simple case of supply and demand, bolstered by a reduced level of negotiation on the part of excited clunker traders,” Anwyl continued. “Add to this the automakers’ unseasonable reduction in incentives and the message is clear: if you buy a car this summer, you should expect to pay higher prices.”