If they do not "take"trades, then they will have to bring in a third party like carmax to buy the used automobile people will need to trade in. The young working poor will have an old tired car that they will not be able to maintain if they have a "new car payment." So if Elio motors can't take trades they will be cutting off a large per engage of the public.
I guess they would sell or junk it. But i could see how it could be a problem. I wont be selling my current car because its worth very little but runs great and looks ok.