Car Dealer Daily

Following the intense influx of new car sales that were spurred by the seemingly doomed Cash for Clunkers program, the program has officially ended Monday, leaving many showrooms around the country void of new car buyers once again.

Some in the car business are expecting a bit of a “hangover” effect from the close of the Cash for Clunkers program, where sales will begin to dwindle once again as they were prior to the program’s launch. As of Monday, a dealer specializing in San Luis Obispo used cars says about 625,000 Cash for Clunkers applications were submitted by dealers, accounting for about $2.58 billion.

Although the program has officially ended, the Department of Transportation has given dealers a little more time in getting rebate applications submitted for processing. Meanwhile, many dealers such as Toyota dealers Boston have been inundated with new car sales, particularly since the announcement that the program was to end early.

While some dealers wrap up last minute rebate submissions, others are not looking forward to the program’s aftermath. In a time when car sales have reached dismal lows, some such as World Hyundai Matteson fears that sales could drop off dramatically. Even automotive website Edmunds.com has projected a 40 percent drop in sales immediately following the close of the program.

Inventory is a huge problem for many dealers. There are simply not many cars left in showrooms, leaving prices high for consumers. This will leave many consumers disappointed in the near term, but there is still hope suggests a used Honda Pittsburgh dealer. Automakers are beginning to awake, and are adding shifts at plants to produce more cars and fill depleted inventories among dealers. Additionally, with a new model year approaching, all-new models and fresh products will soon be available to showrooms, to entice buyers that have been disappointed recently by the poor selection on dealer lots. Although a renewed interest in new cars may be coming soon, one used car dealer Washington DC is expecting used car demand to rise again in the near-term.

With new cars and new inventories arriving soon, incentives and car buyers may be plentiful once again. Continue reading ‘Dealers Brace for Cash for Clunkers Aftermath’

Giving money away is certainly one of the best ways to stimulate a frenzy. Case in point is the Cash for Clunkers program, which had quickly burned through its $1 billion budget before Congress approved the allocation of another $2 billion last week to keep the program afloat.

Interestingly, there are apparently more clunkers on the road than many on Capitol Hill initially realized, suggests Saint Paul Ford dealers. As a result, the program was temporarily suspending after only a week of running to allow lawmakers to determine the fate of the program. Ultimately, it was decided that spending more was the appropriate solution.

Cash for Clunkers, officially called Car Allowance Rebate System (CARS), provides $3500 to $4500 to those that purchase a new car and trade-in an older clunker. The system is designed to get older, gas-guzzling vehicles off the road and to encourage the sale of fuel efficient vehicles.

Unlike a normal trade-in, old clunkers are required to be destroyed by the dealer. As Honda Service San Luis Obispo explains, car dealers therefore will not be able to take advantage of any remaining value the vehicle might have. While the program has certainly sent plenty of consumers to dealerships, some visitors to Philadelphia Used Cars have suggested that simply throwing away vehicles that may still have value is a bit wasteful – particularly when taxpayers are paying for the vehicle’s destruction.

While some that are not in the market for a new car, and do not own a clunker, may argue that the program has inherent flaws, Cash for Clunkers has nonetheless stimulated new car sales ( at least temporarily). This is important considering new car sales have continued to plummet in recent months. While this program may not help most drivers, it certainly is already helping new car dealers as plenty of consumers are interested in getting $3500 to $4500 off the price of a new car. Continue reading ‘Troubled Cash For Clunkers Program Continues’

Toyota sales dropped about 11 percent in the month of June. While not a positive outcome, it was a signal that the industry’s recovery may be underway.

Toyota’s market share remains strong and while sales have certainly fallen compared with last year, the numbers are still comparatively healthy next to those of other automakers suggests a Toyota Washington DC dealer. Needless to say, tight credit and unemployment are still factors that are hampering new car sales.

What has helped Toyota more recently is the Cash for Clunkers program. This government program offers up to $4,500 for those who trade in a gas-guzzler for a more fuel efficient vehicle. With Toyota’s reputation for producing economical cars, the program has helped fuel new car sales. Another $2 billion may soon be appropriated for the program to maintain the influx of new car sales that one Toyota Boston dealer says the industry as a whole desperately needed.

In addition to Toyota, Ford, Honda, and Hyundai are already gaining market share from other GM and Chrysler, and look to dethrone Toyota from its dominance in the North American market observes car dealers Santa Maria. But with a recent sales gain due to steep demand for the all-new third generation Prius, Toyota is down but certainly not out of the game. Continue reading ‘Cash For Clunker Fuels Toyota Sales’