Car showrooms quiet after clunkers clamor ends

[JonQ]

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.

http://www.boston.com/business/articles/2009/09/19/car_showrooms_quiet_after_clunkers_clamor_ends/

Seems like it was kind of a bust.

[phantom power]

1. I don't know if it was a "bust" but it was never going to be sustainable.

People were not buying cars for the very good reason that we're in a horrible fucking recession where our economy is shedding a half million jobs each month.

If anybody thought Cash for Clunkers was going to return us to the magic unicorn days of 1998, they were sadly deluded. It was going to last exactly as long as the stimulus money.

[skipos]

3. "If anybody thought Cash for Clunkers was going to return us to the magic unicorn days of 1998"

Nobody thought that. Some people PRETEND that they thought that so they can say CFC was a "bust."

[Trajan]

2. Not a bust, but a temporary measure ...

I am pretty sure that simply selling cars is not going to rescue the entire economy, but it did pump money into areas of the economy that needed it ...

No ... to 'fix' the auto industry, and to fix the economy in general; workers need to be well compensated for their efforts ...

The 'real' stimulus for any economy is WAGES: With more than two thirds of the total economy hinging on the transactions of ordinary workers, as consumers, it only makes sense to PAY THEM WELL, so that their purchases can spark productive work elsewhere in the economy ....

When workers have money, they spend it, and THEY improve the lives of their families, and ? - The rich get richer ..... It is a win win ....

Yet the RW Corporatists have a scorched earth mentality that reduces family incomes by denying basic wage hikes, and strangles the economy from the bottom .... It eventually kills all upward movement for everyone, including the rich ....

If workers were paid the TRUE value of their work, then this meltdown would have never happened ...

When workers have money; they pay their bills AND buy things ... THAT, my friends, is the only stimulus we really need ...

[liberal N proud]

4. That temporary measure was intended to infuse the economy

I fear it was too little for too short of a time.

There needs to be a longer incentive to get people to spend their money and start the cash flow again. It has to be something that those who do have credit and cash can take advantage of and purchase items that WILL put people back to work. Buying shit made in China isn't going to do us any good.

The whole program has to last long enough to put people to work so they will have paychecks to get back on their feet and then they eventually can start to purchase things again thus driving an economy.

But if there isn't a production based economy, it will fall flat.

[FarCenter]

5. The TRUE value of auto worker's work is whatever they are making in Hermosillo or Shanghai

So long as free trade is the policy.

[Brother Buzz]

6. Our only auto showroom in town had ONE 2010 auto on the floor. One new car.

However, they are doing a brisk business in late model used cars. Big truck inventory too (tradesmen vehicles not pickups), but I don't know how they are selling.

[Obamanaut]

16. The Ford dealer in our small town had fewer than 30 vehicles on the

lot yesterday when we drove by. They were spread out enough so that it was easy to count them. Formerly there would be that many pickups - full size and Rangers, along with SUVs and larger sedans. The smaller cars, never had many.

The cars on display yesterday incuded five used PT Cruisers.

I think all this is a bad sign.

[Brother Buzz]

17. Ours is a Ford dealership too, but by attrition....

they are the last Ford dealership open and now now serve a huge area. I believe they will brave the storm.

[Robb]

7. I can't decide which is worse

...The news, or the headline. (facepalm)

[kestrel91316]

8. Meanwhile, Craig's List is jam packed with used cars. It is definitely a

buyer's market, and I will be in the market very soon. For ONCE in my life, I am at a financial advantage, lol.

[divideandconquer]

9. Actually some used car prices are rising quite dramatically except on economy cars

Used trucks and even some SUV prices are quite strong.

[spanone]

10. bust? i'd call it a great success.

[JonQ]

15. By what metric?

If it turns out it actually improved the long term sales of cars in this country, then awesome.

But so far it looks like we spent billions to get a temporary spike in sales, matched by a long term drop. So the net car sales for the year may be about the same factoring everything in.

Throw in the fact that for many of the cars the carbon footprint is actually greater to produce them then the likely savings in gas, and that most were no made in the US and it seems like a complete waste. We would have been better off splitting the 3+ billion evenly and just giving it to people to pay for rent, or food, or debts or whatever.

[SoCalDem]

11. No surprise.. cars are about $5-$8K out of reach for most buyers

when the "sale" is over, people quit buying them

[kctim]

12. Wait until the repo's hit

My neighbors live paycheck to paycheck, always talking about hurting for money, and he traded in his perfectly fine "clunker" that he OWNED, for a brand new sedan.
Encouraging going into debt at this time was ridiculous.

[lib2DaBone]

13. Cash for clunkers stripped the inventory of dealers.. which was good..

..but now, the dealers are not ordering any new inventory, for fear they might get stuck. Even if you can afford a car.. the dealer doesn't have it. The dealerships are ghost towns and the only thing that will change that is JOBS.

[Romulox]

14. C4C was an ill conceived attempt at "third way" hocus pocus--a big bundle of contradictions.

Government money to foreign corporations, defended under the banner of "free trade".... :silly: