FI showroom red and grey logo
MenuMENU
SearchSEARCH

Retail Sales Improve in August

After four straight months of declines, retail sales rebounded in August, but not just because of the federal Cash for Clunkers (C4C) program.

by Staff
September 17, 2009
2 min to read


After four straight months of declines, retail sales rebounded in August, but not just because of the federal Cash for Clunkers (C4C) program.

According to the U.S. Census Bureau, retail sales rose 2.7 percent in August, well above the 2 percent increase analysts had predicted. Motor vehicle sales, riding the C4C wave, jumped 10.6 percent.

Ad Loading...

Sales excluding motor vehicles increased 1.1 percent, and sales excluding motor vehicles and gasoline rose 0.6 percent.

“Even excluding the strong growth in motor vehicle sales, which was a result of the successful ‘Cash for Clunkers’ program, this significant increase in consumer spending shows that the Recovery Act and President Obama’s other economic initiatives are succeeding in putting the brakes on the recession,” U.S. Commerce Under Secretary for Economic Affairs Rebecca Blank said. “Accelerated stimulus spending in the second half of this year will create jobs and further stimulate our economic recovery.”

While the C4C program, which launched on July 27, did boost sales in August, some analysts wonder what the impact of the program will be on consumers who took advantage of the program and traditional retail sales.

“Many Americans who traded in their vehicles have become saddled with monthly car payments, which reduces the amount of money they’re able to spend in other areas,” said Rosalind Wells. “As a result, it remains to be seen how the ‘Cash for Clunkers’ program will impact traditional retail sales.”

In a survey conducted shortly after C4C ended on Aug. 24, CNW found that 17 percent of the 1,000 participants of the C4C program had “some” or “serious” doubts about making a new-vehicle purchase. Typically, in a non-C4C environment, buyer’s remorse hits roughly 6 to 9 percent of new-vehicle buyers within a month, according to CNW Purchase Path research.

Ad Loading...

“The primary reason (for those doubts): They are now facing a $275 to $350 per month car payment that didn’t exist prior to acquiring the car or truck,” wrote CNW’s Art Spinella. “That amount, they say, could negatively impact the total family budget more than expected prior to buying the new vehicle.”

More F&I

Photo of a keyring with mltiple keys, including a car key fob, on a white surface
F&IJuly 15, 2026

Integrating Nontraditional F&I Products

The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.

Read More →
Photo of businessman's hands holding eyeglasses at a desk
F&Iby Rick McCormickJuly 7, 2026

Trust Is Personal

Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.

Read More →
Photo of executive in a sports coat and glasses
Industryby StaffJuly 2, 2026

Amplify 2026 Billed as Turning Innovation Into Results

Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.

Read More →
Ad Loading...
Woman standing on stage smiling.
F&Iby Lauren LawrenceJuly 1, 2026

Own Your Outcome: F&I in the Digital Customer Journey

Finance has historically been the last step in the car-buying process, but it doesn’t have to be. The customer’s journey starts long before they arrive at the dealership, and so should F&I’s involvement.

Read More →
$100 bill and magnifying glass on top of paper that says insurance policy terms and conditions.
F&Iby Lauren LawrenceJune 29, 2026

Tariffs Could Raise Insurance Premiums

As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.

Read More →
Red toy car sitting on top of coins.
Auto Financeby Lauren LawrenceJune 24, 2026

Smaller Loans, Longer Terms

The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.

Read More →
Ad Loading...
Under the hood of a Toyota Prius EV Hybrid car.
F&Iby StaffJune 15, 2026

New Lifetime Battery F&I Product Meant to Drive Dealer Traffic

EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.

Read More →
Several illustrations of question marks on a surface
F&IJune 10, 2026

The Psychology Behind Menus That Increase Add-On Sales

There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.

Read More →
Man holding magnifying glass over sales volume paper.
F&IMay 29, 2026

Why Your F&I PVR Is Misleading You

Here’s a handy checklist of the numbers to track in 2026 instead.

Read More →
Ad Loading...
Photo of woman typing on a laptop as she sits on a couch
F&Iby Hannah MitchellMay 29, 2026

Auto Consumer Anxiety Presents Opportunity

A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.

Read More →