The rush of automotive sales activity brought on by the "Cash for Clunkers" program is fading fast, according to Edmunds.com, whose latest study of car buyer behavior indicates that automotive purchase intent is down 31 percent from its peak in late July.
Not only did Cash for Clunkers pull consumers in their prime new-car buying years into showrooms, but it also got lenders into the action as well.
Nearly three weeks after its initial launch, consumer interest in the government-funded “Car Allowance Rebate System” has already declined by 15 percent, according to purchase intent data from Edmunds.com.
New York Attorney General Andrew M. Cuomo announced Monday that his office has issued cease-and-desist letters to nearly 40 auto dealers across New York state whose advertisements for the new federal Car Allowance Rebate System (“CARS” or “Cash for Clunkers”) were misleading and deceptive.
The federal “Cash for Clunkers” program generated a SAAR shopping rate of 19.6 million and boosted the percentage of trade-in vehicles involved in new-car sales, according to Edmunds.com.
Congress’ Cash for Clunkers program is a much-needed shot in the arm for the auto industry. But more than anything, this once-in-a-lifetime opportunity is testing the strategies marketing firms are pushing, and dealers are employing.
I have to admit, I’ve been feeling a little down of late. No, there’s nothing wrong with me, my family or my car, although Cash for Clunkers could be in its future. What’s been bothering me is how this industry continues to be kicked when it’s down.
Toyota is offering regional lease rates to consumers participating in the government’s Car Allowance Rebate System (CARS).
Edmunds.com included an advanced calculator in its Cash for Clunkers Resource Center to help consumers determine if the federal program can work for them.
Although new-vehicle retail sales in July are projected to decrease 19 percent from July 2008, this marks an improvement in year-over-year declines observed for the first half of 2009, according to J.D. Power and Associates.
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