• Stop being a LURKER - join our dealer community and get involved. Sign up and start a conversation.

Are dealers spending to much time and money on Cash for Clunkers?

Shereef

Boss
Jul 24, 2009
183
9
First Name
Shereef
Hello Everyone

I have been watching the cash for clunkers program roll out on dealer websites. Some dealers are putting a large part of their resources and time into this program. While I realize there are some customers to be gained from this program, I think if dealers lose focus on their core business it will actually cost them sales. I think dealers should allot 15 to 20% of their budget, and about the same amount of effort to this to make sure they don't miss any opportunities, but I think they will lose business if they revert to much of their budget/time to cash for clunkers.

Shereef
 
Last edited:
Shereef,
Not to sound argumentative but I would encourage you to visit a local import dealership and have a look around. I think you will be surprised with what you'll find. Been more like 60% for us lately.

Hi Brian
I am glad to hear you are getting a lot of action with it. I look forward to more people giving their opinions on this. I may be wrong, but I see so much effort being put into it, and I am not sure the reward will be there. The commotion being stired up is great, and will bring dealers sales, my concern is to make sure it is not at the expence of the dealers core business.
Shereef
 
We've got maybe $12,000 in advertising into the program. We're at just over 70 deals now = $171.43 cost per sale (and it gets lower by the deal). How can you argue that?

It is probably about 60% of our volume right now, like Brian stated. But we also did about 30 deals before the program started where we were able to get people out of their cars without the government money. So, $12,000 in advertising against 100 deals = $120 advertising cost per sale.

I think your concern is warranted, but this entire program is a temporary strategic strike. We should be doing all we can to make every dollar while the sun is shining on this one because it isn't going to last.