In 2008 Mexico banned the importation of all used cars except cars produced in the model year 1998. Before then, it was legal to import used cars 10 to 15 years old, and enterprising firms purchased used cars at auctions in south Texas for resale to Mexican used-car dealers. Younger cars were banned to protect Mexico s new-car industry, and older cars were banned for environmental reasons. The new law that restricted imports to 1998-model cars caused immediate changes in the prices of used cars in Texas. The prized 1998 models jumped in price by $500 to $800, while the prices of older cars decreased. The sudden change in policy left some U.S. firms with large inventories of cars that could no longer be exported to Mexico.