“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.”