Posted on 09/19/2009 8:17:56 AM PDT by Saije
It has been nearly a month since the car-buying frenzy of the Cash for Clunkers program ended, and many area auto dealers are longing for the good old days of July and August.
Like consumers nationwide, Massachusetts residents rushed to take advantage of the federal voucher program, which offered them up to $4,500 on old gas-guzzlers to be put toward the purchase of new, more fuel-efficient vehicles. About $65 million worth of vouchers were handed out statewide during the monthlong program that ended Aug. 24.
But once the federal money dried up, so did the sales rally. Now, customers at dealerships like Silko Honda in Raynham are few and far between, and inventory is once again accumulating.
Nationwide, customers snatched up 700,000 new cars, most of them foreign-made, and the government ended up paying out nearly $3 billion toward the purchases. But from the start, analysts predicted that Cash for Clunkers would not boost sales for the year. September’s sales swoon seems to be making their case. Car sales are usually slow after Labor Day, but because of the recession consumers this year are especially reluctant to say yes to major purchases. To make matters worse for dealers, most are still waiting for voucher reimbursements.
“It was probably, in the end, a complete waste of taxpayer money,’’ said John Wolkonowicz, a senior auto analyst at IHS Global Insight, Lexington forecasting firm. “The dealers, who were supposed to be the primary beneficiaries, many were forced into cash flow problems because the government didn’t pay them in a timely fashion.’’
(Excerpt) Read more at boston.com ...
Sugar rush!
Typical liberal feel good for today!
Duh!
Another wonderful feel good goverment program. Short term headlines for politial purposes.
Gee just think what they can do with health care.
And wait a few months until all those people who normally wouldn’t or couldn’t afford to take on more payments for a new car stop making their payments.
Good time to get in the repo business.
The C4C program was never about economic stimulus, it was about O’s green agenda — which includes destroying older vehicles, even if they’re still in perfect working order, even if removing hundreds of thousands of such cars from circulation will pretty much ruin the ability of the economically disadvantaged to get a car.... which is probably part of the plan anyway (end private ownership of cars, starting with the poor?).
The money didn't dry up. $120,000,000 was unspent when the program ended. They ran out of buyers, not money.
Nationwide, customers snatched up 700,000 new cars, most of them foreign-made
Repeat, foreign-made, not transplants.
“It was probably, in the end, a complete waste of taxpayer money,’’
If the intent was to stimulate the US economy, I would agree.
Time for another Cash for Clunkers program, so we can front load sales for the next year. My brother traded in a 2004 Malibu for a new Hyundai. He is a dyed in the wool liberal who thinks the program was great. Anytime the government offers a “freebie,” he is there. He’ll let his children and grandchildren pay the bill.
As long as the government is involved in GM; I will not buy a car from them.
How long before the car companies get desperate again? I think 6 to 9 months.
We’ve never seen this before. A liberal idea that had negative consequences? Wow.
Cars are things that people need or don’t need and generally won’t spend money on just to empty their pockets.
Cash for clunkers was like all grocery stores offering a 50% discount on canned foods. Canned food prices jump during the discount, but after the discount sales drop to all time lows as people live off of what they have stored.
Any fool knows that CforC only front loaded Sept-Dec sales into July and August. Only idiots bought cars they weren’t already planning to get in the near future, and most idiots don’t have money for new cars, discounted or otherwise.
Me, you, and everyone else with an IQ above 80. GM has failed. Let them go and reallocate that capital to other ventures. Right now, we're just throwing good money after bad. Capitalism works if the gov't would just get out of the way.
Let's look on the bright side, folks.
The government only blew $3,000,000,000. Since when has any government program lost so little money and then ended!!??
You're right. Silly me!
Next, it will be Cash-For-Free-Section-8-Housing or some such crazy giveaway. Oh, wait,... never mind!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.