Autoblog

Australia launching 'Cash For Clunkers' modeled on U.S. program?

Jonathon Ramsey — Mon, 26 Jul 2010 17:28:00 EST

Filed under: Car Buying, Government/Legal, Australia

Australia's recently seated prime minister, Julia Gillard, is just now talking about a "cash for clunkers' program when most other countries ended theirs ages ago. Yet for Gillard, the program isn't about stimulating car sales but rather about stimulating the Earth: Gillard wants to get about ten percent of Oz's two million pre-1995 vehicles off the roads.

The mechanics of the program are largely the same as they were in the States, the new stipulation being that purchasers need to buy an "extra-efficient vehicle" like a Holden Cruze, Hyundai Getz or Toyota Camry Hybrid. The rebate is $AUS 2,000 - $1,790 Yankee bucks - and the program has been funded with $AUS 394 million (around $356M USD) and runs from January 1, 2011 until December 31, 2014.

[Source: The Australian]

Australia launching 'Cash For Clunkers' modeled on U.S. program? originally appeared on Autoblog on Mon, 26 Jul 2010 17:28:00 EST. Please see our terms for use of feeds.

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Report: Despite C4C, more old cars being scrapped than new ones purchased

Zach Bowman — Sun, 04 Apr 2010 17:29:00 EST

Filed under: Car Buying, Government/Legal, Earnings/Financials

A new study by R.L. Polk & Co. finds that more Americans scrapped their old vehicles than bought new ones, even during the height of the Cash for Clunkers program. The study took place over a 15-month period ending last September. During that time, a total of 14.8 million vehicles were scrapped in the U.S., while just 13.6 million new registrations were issued. The report said that U.S. scrap rates had risen to 6.9 percent of the country's total vehicle fleet in October of 2009, compared to 4.3 percent in July of 2005.

The study also finds that the average age for all light trucks and cars on the road today is 10.2 years - much older than before the recession hit. Similarly, owners are keeping their vehicles longer. The Polk research shows that on average, Americans hold onto their vehicles for 49.9 months, compared to 45 months at the same time last year.

R.L. Polk & Co. typically follows scrap trends as an indicator of future vehicle sales, though not over such an extended period of time. As owners send their old hulks out to pasture, they typically fill the empty slots in their driveways with new models.

[Source: Automotive News | Image: Justin Sullivan/Getty]

Report: Despite C4C, more old cars being scrapped than new ones purchased originally appeared on Autoblog on Sun, 04 Apr 2010 17:29:00 EST. Please see our terms for use of feeds.

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Cash for Clunkers more than twice as effective as first thought?

Frank Filipponio — Wed, 10 Mar 2010 10:00:00 EST

Filed under: Car Buying, Government/Legal

In what might turn out to be one of the biggest games of "he said, she said," in the history of the world, Maritz Research, an automotive market research company, is claiming that the government's Cash for Clunkers program actually boosted auto sales by much more than previously thought. Maritz is crediting the program with 765,000 new vehicle sales, higher than the 677,000 claimed by the government, and much, much higher than the 125,000 sales that Edmunds.com famously quoted. In fact, it's more than double the Department of Transportation's own estimate of 346,000 sales.

Maritz surveyed 36,000 new car and truck buyers who bought their vehicles during the time Cash for Clunkers was in effect, between July and August of 2009. The company figures a full 542,000 sales came from people who hadn't planned on buying a car otherwise, spurred by the government program. Maritz also includes 223,000 people who came to dealerships after hearing of the program, and even after they discovered that they didn't qualify, bought anyway.

Perhaps even more interesting were the findings on how the program affected future sales. It was believed by many that Cash for Clunkers might have just sped up sales in the short term, advancing sales that would have naturally occurred in future months or years. "The results provide strong empirical evidence that CARS did not impede future sales," said Maritz vice-president David Fish, "Vehicles were sold to people who don't normally buy them."

According to Maritz's findings, Cash for Clunkers buyers tended to be long-term car owners. Maritz says that nearly 80 percent of trade-ins had more than 100,000 miles on them and that 50 percent were more than 10 years old. Better than 60 percent of buyers told the pollsters that they plan on keeping their new cars as long as possible, meaning that many of the people who took advantage of the program came from non-regular customer pools.

The Maritz report could be used to support additional incentive programs like Cash for Clunkers in the future, but there are already detractors. For its part, Edmunds.com is already saying that there is a big difference between the analysis of sales figures it performed in its own study and Maritz's conducting of a survey that could contain flawed or leading questions. The issue is certainly not settled yet.

[Source: CNN Money | Image: Justin Sullivan/Getty]

Cash for Clunkers more than twice as effective as first thought? originally appeared on Autoblog on Wed, 10 Mar 2010 10:00:00 EST. Please see our terms for use of feeds.

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Report: Japan opens Cash-for-Clunkers to U.S. brands

Jonny Lieberman — Tue, 19 Jan 2010 13:02:00 EST

Filed under: Car Buying, Government/Legal, Japan

Japan's Transport Minister Seiji Maehara saying words we put into his mouth

Curiously, there was actual outrage in Congress recently over the fact that American cars were left out of Japan's version of a Cash-for-Clunkers program. We say curiously because Congress has been pretty copacetic for decades about Japan's lopsided, unfair import policies. But, when our elected officials learned that the roughly $2,500 given to Japanese consumers for their old beaters could not be put toward the purchase of a new American car, our lawmakers sprang into action.

Michigan Democratic Senator Debbie Stabenow put together a bill that would have required near constant pressure on the Japanese until the program was opened up to U.S. cars. After all, during our recent Cash for Clunkers program, Japanese automakers were hugely beneficial, scoring nearly half of all Clunker-related sales (319,342 cars out of 677,000). Ultimately, it appears that Japan has caved to Stabenow's squeezing and they opened their program up.

Happy happy, joy joy time for the Detroit Three, right? Not exactly.

As it turns out, only certain small-volume cars imported under a special handling program that also meet Japan's 2010 emissions standards are eligible. Translated into English, only 700 new U.S. cars can theoretically be sold to Japanese consumers under this legislation, including the Ford Escape, Cadillac CTS and Chrysler Grand Voyager. But hey, at least Congress is happy. A symbolic victory is still a victory, no?

[Source: Automotive News - sub. req. | Image: Yoshikazu Tsuno/AFP/Getty]

Report: Japan opens Cash-for-Clunkers to U.S. brands originally appeared on Autoblog on Tue, 19 Jan 2010 13:02:00 EST. Please see our terms for use of feeds.

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Detroit 2010: Transportation Secretary LaHood ponders another round of cash-for-clunkers

Chris Shunk — Thu, 14 Jan 2010 11:29:00 EST

Filed under: Car Buying, Detroit Auto Show, Government/Legal, Earnings/Financials

Cash-for-Clunkers was among the more watched auto-related story lines of 2009. With the industry hurting, the government provided cash vouchers of between $3,500 and $4,500 to anyone who turned in a vehicle that was eight (or more) years-old and with between two and 10 miles-per-gallon worse fuel economy numbers than the new car or truck with which it was replaced. The program went from fledgling idea to a done deal in a matter of a few months, showing that the U.S. government is capable of move quickly when it really wants to, albeit with the help of a big fat $3 billion check.

The feat was reportedly so impressive to Department of Transportation Ray LaHood that he openly wondered whether the program should be reincarnated for 2010. Motor Trend reports that LaHood told reporters at the Detroit Auto Show that Clunkers was "the most wildly successful program ever, selling 800,000 cars in less than 30 days." It sounds like LaHood was really impressed with how C4C panned out, but will the program and its multi-billion dollar price tag resurface in 2010? LaHood says the DOT won't be begging for any spending money, and he insists that any decisions will need to be made by Congress in the year ahead.

Motor Trend says that despite LaHood's hands-off approach to Clunkers, there are persistent rumors that C4C could resurface in the second quarter of 2010 with perhaps less bountiful tax incentives and a less exorbitant price tag. We have no idea if C4C has any chance of making a cameo in 2010, though we're thinking that the consistent uptick in sales after Clunkers expired shows that the industry is beginning to improve without additional government intervention. Why spend money propping up an industry that seems to be doing a swell job of helping itself? Let us know what you think by heading over to the Comments and giving us your two-cents.

[Source: Motor Trend | Image: Justin Sullivan/Getty]

Detroit 2010: Transportation Secretary LaHood ponders another round of cash-for-clunkers originally appeared on Autoblog on Thu, 14 Jan 2010 11:29:00 EST. Please see our terms for use of feeds.

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Report: Israel gets into the Cash-For-Clunkers craze

Jonathon Ramsey — Sun, 10 Jan 2010 09:35:00 EST

Filed under: Government/Legal, Middle East

Israel is the next contestant in the Cash-for-Clunkers game, but playing it a bit differently than national counterparts: Israel's intentions appear to be solely for the purpose of getting older cars off the roads. Run jointly by the transportation and environmental protection ministries, the program will hand over 3,000 New Israel Shekels (NIS) ($810 U.S.) to anyone who turns in a car more than 20 years old.

The program imposes no obligation to buy a new car - just hand over the old car and walk away with the cash. With 100 million NIS devoted to the cause and five years allotted in which to spend it, Israel is ready to take 33,333 beaters off its byways. Hat tip to Karin

[Source: Haaretz | Image: Beny Schlevich - C.C. License 2.0]

Report: Israel gets into the Cash-For-Clunkers craze originally appeared on Autoblog on Sun, 10 Jan 2010 09:35:00 EST. Please see our terms for use of feeds.

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Report: Senator calls for audit of Cash-for-Clunkers program

Chris Shunk — Wed, 06 Jan 2010 15:58:00 EST

Filed under: Government/Legal

Remember that insane list filled with great cars that were reportedly crushed under the Cash-for-Clunkers program? We were wondering if and when the federal government would thoroughly audit dealers who cashed in products like a 2006 Cadillac STS, an Audi S6 or a 2008 Foose F-150. That still may or may not happen, but apparently isn't the chief concern of Iowa Senator (R) Charles Grassley.

The senator has reportedly asked Department of Transportation chief Ray LaHood to look for evidence of fraud in the C4C program's $110 million administrative costs only. Grassley noted the exceptionally quick turnaround time of the program in his letter to LaHood and added "the DOT had only 30 days after the date the legislation was enacted into law to engage contractors and stand up the Program before the first rebates were issued." Grassley added that the original clunkers program accounted for $50 million in administrative costs but no additional money was allocated when the government approved an additional $2 billion for the program. It's clear Grassley wants answers, and he may have a point.

"To date the Administration has not provided an accurate accounting of the administrative costs related to the Cash for Clunkers program and I believe that the American taxpayer deserves more information, not less, and that information needs to come sooner rather than later."

The U.S. government contracted several agencies to handle C4C administrative duties including Citibank, Vangent and the IRS. The program reportedly accounted for a total of 690,000 transactions at an administrative cost of about $144 per vehicle.

[Source: The Washington Independent | Image: Justin Sullivan/Getty]

Report: Senator calls for audit of Cash-for-Clunkers program originally appeared on Autoblog on Wed, 06 Jan 2010 15:58:00 EST. Please see our terms for use of feeds.

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REPORT: Detroit Three call Japan's cash-for-clunkers program unfair

Chris Shunk — Fri, 11 Dec 2009 10:32:00 EST

Filed under: Car Buying, Government/Legal, Japan

The U.S. Car Allowance Rebate System (a.k.a. 'cash-for-clunkers') program was a short-term boon for automakers participating in our market. Sales went up, inventory went down and nearly 700,000 vehicles that would likely have otherwise ended up on used car lots were destroyed. And since the U.S. is essentially a free market where automakers around the globe are allowed to participate, Japanese and European automakers benefited from the program as well. In fact, Japanese automakers fared even better than their U.S. competitors, as Toyota, Honda and Nissan are said to have surpassed their market share with the program. A reported 319,000 of the 677,000 vehicles sold via cash-for-clunkers were from Japanese companies. But while the U.S. C4C program took place in a free market where everybody is able to participate, critics are complaining that the new Japanese program is anything but equal opportunity.

Japan is considered by many to be the world's most insular auto market, and its $3.7 billion government clunker program makes U.S. autos ineligible for government assistance. According to The Detroit News, the program, which the Japanese government is using to spur sales (which are down 17 percent versus 2008 levels), provides cash rebates of up to $2,830 for customers who turn in vehicles 13 years or older. Car buyers who don't turn in a vehicle can still get over $1,100 toward the purchase of a new vehicle. An estimated 87 percent of all Japanese vehicles are eligible for the program, while zero vehicles from General Motors, Ford and Chrysler will be eligible.

The DetNews is reporting that Motown automakers have written a letter to the Deputy U.S. Trade Representative calling for action on a matter that was called "another example of Japan continuing efforts to discriminate against imported vehicles." Carol Guthry of the U.S. Trade Representative told the newspaper that the government is working to resolve the issue, adding "our position remains that changes are necessary to give U.S. vehicles greater opportunity to qualify under Japan's program."

While we're not exactly import/export experts and we don't have any experience with foreign relations, we're thinking it's about time Japan treated foreign automakers in the Land of the Rising Sun with the same level of equality that its automakers receive elsewhere in the world. What do you think? Have your say in 'Comments.'

[Source: The Detroit News | Image: Yoshikazu Tsuno/AFP/Getty]

REPORT: Detroit Three call Japan's cash-for-clunkers program unfair originally appeared on Autoblog on Fri, 11 Dec 2009 10:32:00 EST. Please see our terms for use of feeds.

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STUDY: Cash for Clunkers helped Japanese way more than Detroit 3

Michael Harley — Fri, 13 Nov 2009 19:30:00 EST

Filed under: Government/Legal, Chrysler, Ford, GM, Honda, Nissan, Toyota

While there is no question that Obama's Cash-for-Clunkers program accelerated vehicle sales this summer, a new report by the University of Michigan's Transportation Research Institute shows the big winners were from Japan, not Detroit.

According to the study, nearly 85 percent of the trade-ins were from General Motors, Ford, and Chrysler, yet they only sold 39 percent of the new cars moved off the lots. On the other hand, 8 percent of the trade-ins came from Toyota, Honda, and Nissan, manufacturers who accounted for 41 percent of new car purchases.

While these numbers may be justified by the large quantity of inefficient domestic trucks and SUVs that were deemed clunkers, customer loyalty also seems to have taken a big shift. About 68 percent of owners who traded in Toyota, Honda, or Nissan vehicles replaced them with another from one of those Japanese brands, while only 43 percent of consumers who traded in Detroit steel purchased another General Motors, Ford, or Chrysler product. The program cost the U.S. taxpayers about $3 billion.

[Source: USA Today | Image: Justin Sullivan/Getty]

STUDY: Cash for Clunkers helped Japanese way more than Detroit 3 originally appeared on Autoblog on Fri, 13 Nov 2009 19:30:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #151: With Eddie Alterman of Car and Driver

Dan Roth — Tue, 03 Nov 2009 15:50:00 EST

Filed under: Podcasts, SEMA Show, Etc., Plants/Manufacturing, Audi, BMW, Dodge, Ford, Lincoln, Subaru, Earnings/Financials, UAW/Unions, Celebrities

Click above for the Autoblog Podcast in iTunes, RSS or listen now!

Abuelsamid, Lieberman, Roth and Shunk. Sounds like a law firm, but it's this week's podcast crew. Car and Driver editor-in-chief Eddie Alterman bravely wades into the pool and joins us for Episode #151 of the Autoblog Podcast, as well.

We spend a goodly amount of time going over what's in all five garages this week, before picking up actual topics. Once into news, we move through the Honda Accord Crosstour's pricing and impending launch, Ford's profitable quarter and union dealings, Edmunds' dust-up with the White House, and wrap with what might be cool at the crazy automotive cavalcade that is SEMA. It's an hour and twenty minutes of rollicking good times, so let us know what you think by dropping us an email at Podcast at Autoblog dot com, reviewing the show in iTunes, filling out our survey, or even leaving us a voicemail on our Google Voice line 734-288-8POD (734-288-8763). Thanks for listening, we'll see you next week!

Continue reading Autoblog Podcast #151: With Eddie Alterman of Car and Driver

Autoblog Podcast #151: With Eddie Alterman of Car and Driver originally appeared on Autoblog on Tue, 03 Nov 2009 15:50:00 EST. Please see our terms for use of feeds.

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Empire Strikes Back: White House calls out Edmunds on Clunkers story, Edmunds responds

Chris Shunk — Fri, 30 Oct 2009 13:31:00 EST

Filed under: Car Buying, Government/Legal

The facts in the case of the White House versus Edmunds are essentially indisputable - but they are open for interpretation. The federal government's $3 billion Cash for Clunkers program generated 690,000 sales by providing $3,500 and $4,500 vouchers to car buyers who turned in their eligible car or truck in exchange for a more fuel efficient ride. From here on in, Edmunds and the White House seem to be at considerable odds.

Edmunds recently claimed that its statistical analysis shows that only 125,000 of the nearly 700,000 vehicles purchased under C4C were sales that wouldn't have come in 2009 if it weren't for the much ballyhooed government program. And since the program cost $3 billion to implement, Edmunds came to the conclusion that each incremental sale achieved by C4C cost taxpayers $24,000 per vehicle. As you might imagine, the White House has a problem with that.

The White House starts its quite literally otherworldly retort by noting that that motor vehicle sales increased America's overall economic growth in the third quarter by 1.7%. That's the industry's largest contribution to that metric in over a decade. The WH blog post then states that Edmunds is ignoring the assertion that overall car sales were also positively affected by the Clunkers program above and beyond the 690,000 C4C units sold. To add insult to assault, the White House accuses Edmunds of covering auto sales on Mars.

While the government doesn't have hard facts here, anecdotal evidence certainly shows that August's seasonally adjusted annual rate (SAAR) of 14 million cars and trucks sold means there were considerably more sales generated by C4C than the 125,000 number would suggest. The WH blog also notes that analysts from Global Insight and Moody's suggest that there has been little payback from the Clunkers program.

The White House also states that C4C will have benefits beyond the third quarter, as production has been bumped at Chrysler, General Motors, Ford and Honda in the fourth quarter. That should mean that GDP will get still another big shot in the arm from the auto industry. The White House then goes on to add that C4C generated 70,000 jobs. We're tempted to call shenanigans on that one, especially considering that divvying up $3 billion between 70,000 jobs only comes out to $42,857 per - and that doesn't account for the actual cars themselves.

Edmunds CEO Jeremy Anwyl took time to respond to the suddenly hostile situation, arguing that government subsidy programs are always expensive when looked at on a per-unit basis. Edmunds adds that it is strictly working with the facts to come up with the $24,000 per vehicle number, and that anecdotal evidence like indirect sales isn't based on concrete data.

[Sources: White House Blogs; Edmunds Auto Observer | Image: Gabriel Bouys/Getty]

Empire Strikes Back: White House calls out Edmunds on Clunkers story, Edmunds responds originally appeared on Autoblog on Fri, 30 Oct 2009 13:31:00 EST. Please see our terms for use of feeds.

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Edmunds: Cash for Clunkers cost taxpayers $24k per car, not $4k

Chris Shunk — Thu, 29 Oct 2009 10:59:00 EST

Filed under: Government/Legal, Earnings/Financials

Cash for Clunkers vehicles - Click above for high-res image gallery

There is little doubt that Cash for Clunkers gave auto sales a big boost in late July and most of August, but there has been considerable debate as to how much help taxpayers' $3 billion provided. Customers who purchased a new car or truck were rewarded in many ways, especially when you consider the U.S. government paid out a median price of about $4,000 per clunker. Those customers are also saving at the pump, as each car turned in was 4-10 mpg better than the vehicle it replaced. Dealers sold more cars. States received more tax dollars. So the program was a success, right?

If you believe the statistical analysis of Edmunds, perhaps the program wasn't so terrific after all. The industry research juggernaut claims that of the 690,000 vehicles sold under the program, only 125,000 of those sales went to people who weren't going to purchase a new car in 2009. The result, says Edmunds, is that the $3 billion spent for C4C ended up spurring only 125,000 sales at a cost of $24,000 per vehicle. Further, Edmunds claims that October's sales would have ramped up even more than what current projections indicate.

There doesn't seem to be too many industry experts who disagree with Edmunds' assessment that the Clunkers program only generated 125,000 additional sales, but C4C wasn't just about selling cars and trucks. Ford industry guru George Pipas told CNN Money that the Blue Oval feels the program was a success, adding "The whole purpose of the program was to provide some kind of catalyst to kick-start the economy, and by all accounts the extra production that was added this year was a boost to the economy."

While we're not entirely sure C4C was a great idea, it's hard to argue that it spurred desperately needed economic activity. Dealers were able to pay their staffs, OEMs ramped up production at plants to keep up with new demand, beneficiaries of C4C were able to upgrade their rides, and some of the road's biggest eyesores were given a sodium silicate death sentence - surely that's worth something.

Gallery: Cash for Clunkers vehicles

[Source: CNN Money | Image: Ethan Miller/Getty]

Edmunds: Cash for Clunkers cost taxpayers $24k per car, not $4k originally appeared on Autoblog on Thu, 29 Oct 2009 10:59:00 EST. Please see our terms for use of feeds.

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Hard to Handle: Recyclers reportedly facing crush of cars after C4C

Jeremy Korzeniewski — Wed, 28 Oct 2009 09:59:00 EST

Filed under: Government/Legal

The ramifications of America's. Cash for Clunkers program are still being figured out - which isn't all that surprising given that a total of 700,000 or so sales totaling $2.877 billion were processed in just one month. And besides facing the unfortunate lack of suitable demolition derby material, scrapyards are reportedly finding themselves ill-equipped to deal with all the junked iron sitting behind their barbed-wire fences.

To fully benefit from the program, these scrap cars need to be properly recycled, a process that includes removing most (if not all) of the good usable parts from each vehicle before sending the remaining hulk through crush and melt-down machines. According to the rules outlined in the original Car Allowance Rebate System documentation, recyclers had six months to dispose of all these car-casses. Apparently, that's not nearly enough time.

The American Recyclers Association explains that the initial six month deadline might have been acceptable before Congress tripled the size of the C4C program, but more time will likely be needed to deal with the mess left by the program's expansion. Another six months is now being requested of the Department of Transportation, though no final decisions have been made thus far.

[Source: The Associated Press via MSNBC | Image: Justin Sullivan/Getty Images]

Hard to Handle: Recyclers reportedly facing crush of cars after C4C originally appeared on Autoblog on Wed, 28 Oct 2009 09:59:00 EST. Please see our terms for use of feeds.

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REPORT: J.D. Power predicts October car sales will be down just 6%

Chris Shunk — Tue, 27 Oct 2009 09:30:00 EST

Filed under: Car Buying, Earnings/Financials

October is coming to a close, which means we're within a few days of getting the ~~bad news~~ monthly auto sales tally. But October may not look as bad as many feared, at least according to the latest study by J.D. Power. The industry forecasting gurus see October sales down only six percent versus October 2008, showing that one of America's hardest hit industries may have already bottomed out. If October sales end up panning out like JDP thinks, it will be the first time in 17 months (outside of August's Cash for Clunkers anomaly) to see sales down under double digits. But while a mere six percent drop sounds like the sales famine is finally coming to a close, it's important to remember that auto sales for October 2008 were down themselves a full 30 percent compared to the year before.

J.D. Power is predicting that October 2009 sales come in at an annualized rate of 10.3 million units, down from last October's rate of 10.8 million cars and trucks sold. JDP's Gary Dilts goes out of his way to tell Reuters not to start celebrating over the single digit declines, but he does express some optimism adding that "improvements in consumer confidence and credit are propelling the return to positive sales gains relative to last year."

Deutsche Bank is even more optimistic about October, predicting annualized sales of 10.7 million for the month; just a fraction below last October's results. Even though the predicted sales drop of only six percent seems a bit deceiving, it does offer some hope to automakers. After months of uncertainty over just how low sales can go, it is starting to look like the worst of the auto sales decline may be behind us. Maybe.

[Source: Reuters]

REPORT: J.D. Power predicts October car sales will be down just 6% originally appeared on Autoblog on Tue, 27 Oct 2009 09:30:00 EST. Please see our terms for use of feeds.

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STUDY: Used car prices reached all-time high in September

Chris Shunk — Tue, 13 Oct 2009 16:58:00 EST

Filed under: Car Buying, Earnings/Financials

New car sales have been in a downward spiral for over a year now, and the big beneficiaries appear to be used cars (and repair shops). A study by Manheim Consulting shows that the company's Used Vehicle Value Index has risen to a record high of 118.5 in the month of September, up 1.8% versus August. That's the ninth straight increase this year, as Manheim's index has steamrolled northward by 6.9% over the past 12 months.

New car sales have risen in part because many car buyers have decided to save money by buying used vehicles instead of new models, shrinking the supply of used vehicles on the market. And since fewer customers are buying new cars, dealers are left with fewer trade-ins. The month of September was especially impactful because many of the car-buyers who did buy new cars and trucks used Cash for Clunkers, and all of those vehicles ended up at the neighborhood crusher, not the used car lot.

Manheim's report also shows that both new and used vehicle inventories are down, which explains why new car incentives have been sliding as well. And with fewer incentives on new vehicles, used vehicles become a more attractive option, except there aren't many pre-owned units on the market. Used vehicles are going to auction with higher overall miles as well, a trend that is to be expected with the lack of vehicles coming off leases. According to Manheim, in January, the average auction car had about 51,000 miles on the odometer. That number has steadily increased over the past nine months to the point where an average auction vehicle now has closer to 63,000 miles on it.

With few used cars on the market and those models that are left tending to be of the higher mileage variety, it makes some sense that some automakers are becoming bolded in their volume projections for next year. Head over to Manheim Consulting for more info on its used vehicle index.

[Source: Manheim Consulting | Image: Justin Sullivan/Getty]

STUDY: Used car prices reached all-time high in September originally appeared on Autoblog on Tue, 13 Oct 2009 16:58:00 EST. Please see our terms for use of feeds.

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Average new car mpg levels hit record high in August, spurred by Cash for Clunkers

Jeremy Korzeniewski — Wed, 30 Sep 2009 08:19:00 EST

Filed under: Etc.

The success or failure of the Cash for Clunkers program that recently came to an end here in the United States has been and will continue to be debatable, but at least some good was accomplished by the legislation. According to data compiled by Wards Auto, the average new car fuel mileage hit a new record of 23 miles per gallon in August, which is a gain of approximately eight percent from August of 2008.

As far as individual automakers go, Toyota came out on top with an average of 26.9 mpg for all cars sold in August, followed by Kia at 25.1 and Hyundai at 24.9 mpg. American nameplates made the biggest mileage jump, rising about four percent from August of 2008 to 20.4 mpg - a new record.

Nobody knows exactly what will happen when the sales figures from September are calculated, but many experts are predicting that fuel efficiency will take a nosedive now that C4C will no longer be offering up to $4,500 to trade up to a new, more efficient car or truck. Overall though, fuel efficiency is likely to steadily increase over the next few years in correlation with the latest CAFE requirements.

[Source: Wards Auto via Green Car Reports | Image: Kevork Djansezian/Getty]

Average new car mpg levels hit record high in August, spurred by Cash for Clunkers originally appeared on Autoblog on Wed, 30 Sep 2009 08:19:00 EST. Please see our terms for use of feeds.

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REPORT: Toyota increases 2009-2010 global sales forecast by 3%

Chris Shunk — Mon, 28 Sep 2009 08:59:00 EST

Filed under: Plants/Manufacturing, Toyota

There have been subtle signs that demand for new cars and trucks are improving. Several automakers plan to increase production over the next few months, and Toyota is no different. Reuters is reporting that the World's Largest Automaker has raised its sales forecast by 3% to 6.7 million units for the year ending March 2010. Toyota is also reportedly looking to increase production by a not-so-subtle 8% to a total of 6.45 million units. Toyota is neither confirming or denying the report, which originated in the Tokyo Shimbun daily.

Some of the reasons cited for the increased forecast and production center around incentives from governments all over the world. Here in the States, Cash for Clunkers payed a big role in Toyota's sales increase, while low emissions vehicle subsidies of up to $2,800 by the Japanese government has helped spur sales in the automaker's home market.

[Source: Reuters]

REPORT: Toyota increases 2009-2010 global sales forecast by 3% originally appeared on Autoblog on Mon, 28 Sep 2009 08:59:00 EST. Please see our terms for use of feeds.

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Top Ten "green" cars that met their fate during Cash for Clunkers

Sebastian Blanco — Sat, 26 Sep 2009 18:22:00 EST

One rule that all clunked cars needed to adhere to was a maximum rating of 18 MPG from the federal government, right? What wasn't required was that the clunked car be considered dirty. After all, it's pretty clear that CNG vehicles burn clean, but that didn't stop 232 of them from meeting their sodium silicate solution-induced death.

We looked through the official, but as of yet unverified, list (PDF) of trade-in cars that were clunked using the Car Allowance Rebate System (Cash for Clunkers) and found that the aforementioned CNG vehicles, 1,779 flex-fuel vehicles and 24 LPG vehicles found their way to the recycler thanks to CARS. Which alternative-fuel models were most dumped? Which single hybrid took a dive? Click above for our top ten and check out the full list after the jump.

Photo by dno1967. Licensed under Creative Commons license 2.0.

Continue reading Top Ten "green" cars that met their fate during Cash for Clunkers

Top Ten "green" cars that met their fate during Cash for Clunkers originally appeared on Autoblog on Sat, 26 Sep 2009 18:22:00 EST. Please see our terms for use of feeds.

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Official Cash for Clunkers trade-in list reveals oddities too strange to believe

Frank Filipponio — Thu, 24 Sep 2009 12:58:00 EST

Filed under: Performance, Government/Legal, Aston Martin, Bentley, BMW, Maserati, Rolls-Royce, Specialty, Luxury

Cash for Clunkers claimed some really interesting vehicles - Was a Buick GNX among them?

Mixed reaction has surrounded the government's Cash for Clunkers program, but after spending around $2.8 billion, some 700,000 new vehicles have found homes. But what got traded in? We've heard some horror stories, but now that the full list of executed vehicles has been released on the Cars.gov website and we've listed some of the oddities we found while snooping around. Many are down right hard to believe, suggesting either errors in the submission process, typos in the list or even some fudging by dealers who clunked a few vehicles that weren't eligible. After the jump is a list of "Clunkers" that stood out. We can't guarantee these all really went to the crusher, but they do appear on the list.

Follow the jump for a recap of the program's eligibility requirements for trade-in vehicles and our full list. And we'd suggest having a box of tissues nearby.

[Source: Cars.gov]

Continue reading Official Cash for Clunkers trade-in list reveals oddities too strange to believe

Official Cash for Clunkers trade-in list reveals oddities too strange to believe originally appeared on Autoblog on Thu, 24 Sep 2009 12:58:00 EST. Please see our terms for use of feeds.

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Cars.com survey says public wants more Cash for Clunkers. Well, of course they do.

Chris Shunk — Wed, 23 Sep 2009 11:00:00 EST

Filed under: Government/Legal

After a month of relentless Cash for Clunkers coverage, we were more than pleased when the Fed's buy-back program finally ended. Nearly every other day C4C was in danger of getting shut down because of a lack of funds. Then there were dealers were worried about getting paid and customers who had to sign responsibility forms in the event their clunker wasn't covered under the program. But while we've had more than our fill of C4C, the car-buying public wants more.

A recent poll conducted by Kicking Tires shows that 55 percent of recent car buyers and current shoppers feel C4C should be resurrected. You might be thinking that anyone who's recently purchased a new car would be pleased with any program which provided $4,500 for an inefficient hunk of junk, but only ten percent of respondents participated in the program. Among those involved, 37 percent would have purchased a new car over a used car if C4C was in effect, 30 percent weren't anticipating a purchase of any kind and 24 percent held off on new car purchases until clunkers arrived.

While many car buyers would love a continuation of Cash for Clunkers, we're guessing tax payers probably don't want to dole out another $3 billion to clear our nations roads of additional rust buckets. Heck, according to an Automotive News survey, 44 percent of dealers didn't even want the program extended the first time.

[Source: Kicking Tires | Image Source: Justin Sullivan/Getty]

Cars.com survey says public wants more Cash for Clunkers. Well, of course they do. originally appeared on Autoblog on Wed, 23 Sep 2009 11:00:00 EST. Please see our terms for use of feeds.

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