• Aug 21, 2009
2009 has been a sales disaster for the automotive world, as industry figures have dropped to the lowest levels in three decades. Cash for Clunkers has been a boon for the otherwise poor year, though, as hundreds of thousands of Americans have traded in their old cars for new, more fuel efficient metal.

J.D. Power has analyzed sales data from 10,000 dealers over the first two weeks of August, and the industry research powerhouse feels the program will boost August sales to 1.1 million units. Even better, their analysts have informed The Associated Press that the bulk of those sales will come from retail customers, with total sales of over 1 million units. If Power is right, August sales would rise 2% over August 2008, making it the first year-over-year monthly sales bump in two years.

Power reportedly feels so good about the effects of the popular program that it has lifted its 2009 sales forecast to 10.3 million sales, up 300,000 units from its April projections. The research firm does feel that C4C has pulled ahead some sales, however, so it is downgrading its 2010 forecast to 11.5 million units from a previous estimate of 11.6 million.

The Cash for Clunkers program ends Monday at 8 pm.

[Source: MLive | Image: Paul J. Richards/AFP/Getty]


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  • 16 Comments
      • 5 Years Ago
      The geniuses predicting a C4C hangover are the same folks who thought it wouldn't make much difference to the market.
      • 5 Years Ago
      It is unfortunate that we have mortgaged our children's future to sell products today. This program won't cost us $3 billion - it will cost us that plus the interest on the debt which won't be paid back in our lifetime. Furthermore, this program has not assisted the domestic industry as it was supposed to and has instead benefited foreign owned companies to a higher degree further eroding what benefit it will have to the U.S. as we were sold.

      As a Libertarian I loathe these government bribes which are always inefficiently executed and never have the rewards that are promised; it is also insulting that so many foreign owned corporations will reap the benefits on the backs of our children and grand children just so that we don't have to stomach the short term pain of a contraction created by the very Government which is trying to cover up its errors.

      Most certainly those who are claiming to have benefited from this will also be the first to whine when the payback/retraction in the market happens over the next quarter. Whatever short term fix this bogus and expensive program gave us, we'll reap the horrors of it for years.

      America got its drug fix. And now the dealers will be longing for the good old days of the market before this idiocy hit.
        • 5 Years Ago
        I'm what most people would call a liberal, and I totally agree.

        The industry had a low point after 9/11 and car companies dragged out the rebates and no-interest loads to keep moving product. People said, "fine - if you're going to *give* it to me, I'll take it" and bought cars they didn't really need. It was clear as day then that they were just pushing off the correction, but six months ago people seemed so suprised that citizens said, "no thanks - I don't really need a car now. I have a pretty new one. While the economy is down I'm going to act more sensible".

        So what do we do? We "stimulate" again, except that it's just empty. We helped people buy more cars, so now they will have even less reason to buy another one. We won't wait for correction to happen; we just keep hitting the pipe again and again until we hit it as hard as we can and still won't feel better.

        Unsubsidized gas prices would have gotten rid of the "clunkers", if that was really the goal. This was just what the constitutional founders talked about when they said something to the effect of, "When the people realize they can just vote themselves money out of the public coffers, the experiment will be over".

        Are we there yet?
        • 5 Years Ago
        oh my god SHUT UP
        • 5 Years Ago
        Although I love audi_arena's answer, I can't help but mention to the haters that roughly 35% of this money will be repaid to the Feds within a year through taxes. Don't get bogged down in a marginal rate discussion, between the sales people, the managers and the owners getting their W-2s and their K-1s, a lot of this will be paid back soon. The question will be how much will the coffers drop from the reduced tax remittance on fuel use.
        • 5 Years Ago
        agreed, and how many 5.0 mustangs disappeared that I cant buy now.
        my curiosity also includes how many of these cars will be repo'd in 8-14 months when the buyers figure out that OMG, I CANT make that payment after all.
        • 5 Years Ago
        You nailed it laser.

        Good to see that there still is some common sense out there and not just a heard of sheep.

        I read online that when all is said and done...this terrible, horrible, stupid, radical, disastrous Cash For Clunkers SCAM will end up costing us around 9 BILLION dollars.
        • 5 Years Ago
        Correct, laser, on all counts.

        I'm guessing CFC will be revived again, and may even become permanent. The ironic part is that it's helping the non-union foreign brands much more than the UAW domestics.

        Moreover, used car prices are going up because of contracted supply (700k crushed clunkers), and the "poor" among us who don't buy new cars will end up paying more for their next car. As well as the tax burden to fund CFC for everyone else.

        And wait until the horror stories begin: Dealers not getting paid by the gov't, the gov't declining CFC applications, missing clunkers, etc.

        And GM's ramping up production to meet CFC demand... oh, wait, there won't be any demand after 8/24. So I guess those 1350 rehired workers will be released again.

        I wonder how many new owners will try to "flip" their cars so as to cash in on the discount they received from CFC?
        • 5 Years Ago
        Randy, excellent analysis. I doubt anyone can follow that.

        Logic...how refreshing.

        Meanwhile, the Dow Jones industrials shot up 155 points today, closing above 9,500 for the first time since Nov. 4, and all the big indexes finished with gains of more than 1.5 percent.

        That's a "disaster" I'd like to have...
        • 5 Years Ago
        "It is unfortunate that we have mortgaged our children's future to sell products today."

        Mortgaged is an interesting term. Figuring that our tax dollars were used to stimulate our economy and provide us with jobs and enable our Government to collect taxes from us so that they can protect us and our freedoms from Foreign governments by funding both our military and the endless pursuit to franchise democracy and freedom around the globe. I see no urgent issue figuring unlike the last administration that allowed individuals to pocket billions of dollars for self serving and greed, this administration has used it to help the country. Just like Regan did! (that's just for the dem haters). I’m no party, at all!

        "This program won't cost us $3 billion - it will cost us that plus the interest on the debt which won't be paid back in our lifetime."

        Fail: When you compound the taxes that the Fed and local governments make off of the movement of money from one company or person to the next, it washes itself out quickly. On the other hand if you do nothing, you get no tax incoming and collapse as a country. Still see no problems!

        "Furthermore, this program has not assisted the domestic industry as it was supposed to and has instead benefited foreign owned companies to a higher degree further eroding what benefit it will have to the U.S. as we were sold."

        It helped both domestic and import companies. Though I don't agree with it on a Patriotic level, I understand that in a Capitalist society, singling out import makers to be dissallowed would be "Protectionism" which is better done through tariffs and import taxes WHICH we don't do on a fair market basis. And that aggravates me!

        "As a Libertarian I loathe these government bribes which are always inefficiently executed and never have the rewards that are promised; it is also insulting that so many foreign owned corporations will reap the benefits on the backs of our children and grand children just so that we don't have to stomach the short term pain of a contraction created by the very Government which is trying to cover up its errors."

        I beleive you lost sight of your core beliefs! Libertarianism is the belief of individual liberty with minimal or complete abolishment of government. It's the closest thing to anarchy you can get without sounding like a tool! The premise is excellent in my opinion but it fails when there are countries out there that want you as a slave and invade your government-less country. Where's your freedom(s) then? A democracy is the compromise of many different ideas and values. You need to let go of trying to control the world and supporting something more like "Constitutionalism". I think it's closer to what you've expressed as beliefs.

        "Most certainly those who are claiming to have benefited from this will also be the first to whine when the payback/retraction in the market happens over the next quarter. Whatever short term fix this bogus and expensive program gave us, we'll reap the horrors of it for years."

        Maybe! Your use of "most certainly" conveys an absoluteness. Unless you can tell the future for certain, you're likely not on target here.

        "America got its drug fix. And now the dealers will be longing for the good old days of the market before this idiocy hit."

        That's exactly what it was supposed to do. You have a headache, you take aspirin! You let it go, you get a migraine. You either deal with it as it happens or it gets worse. You need to understand that "STIMULATION" is not meant to be a wonder-drug. It's a starting point to stimulate growth and action which both are cause for taxation which empowers our Government to protect us and spread democracy! The part of the dealers longing is quite possible but temporary!

        Friend, I think you need to refocus the burn you have inside you and target things like 1. Protecting Borders 2. Eradicating Illegal Immigrants 3. Fair Taxation and Tariffs on Imports 4. Denial of imports made with slave labor. 5. Alternative energy investments to undo the stranglehold the Middle East and Venezuela has on the US.

        That's a start I think! I hope you take my comments and input as constructive!

        - RAndy
      • 5 Years Ago
      @audi_arena: +3,000,000,000
      • 5 Years Ago
      Wow...talk about a horrid return on investment.

      3 BILLION...or...$3,000,000,000 dollars and only a pitiful 2% bump.

      Meanwhile...for the REST of the YEAR...sales will be terrible...erasing that 2% and a whole lot more.
      Muscle Dude
      • 5 Years Ago
      Ok, so August sales are good. But anyone going to buy a car this year bought using the cash for clunkers program. So, September and October and November and December will slow. Watch video: http://www.cardealerreviews.org/?p=116497
      • 5 Years Ago

      Well, if J.D. Power says so, it has to be true.

      What's next for J.D. Power? The best, most satisfying toilet paper? Really, how can anyone really take what they say seriously?

      • 5 Years Ago
      I think this is conservative. The last two weeks have been absolutely insane, I've sold twice as many cars as I can deliver because other dealers won't trade because they are slammed with business as well.
        • 5 Years Ago
        @Randy Holy crap that was a great post.

        To all you other negative people out there as I have said a million times. Most of the people who took advantage of this program either paid cash, we are sitting at 40% cash deals now, or had so much income and put so much down that they could have paid cash if they wanted to. They just took advantage of super low special interest rates under 3.9%.
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