- May 1, 2006
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Cash for Clunkers
- Thread starter bpreston
- Start date
Great! 3 month Govt. program last 6 days. Crossing my fingers over the unsubmitted deals...
- May 1, 2006
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We just heard from Toyota that deals that were contracted before midnight tonight will still be funded. We haven't heard anything official from the NHTSA yet, so keep your fingers crossed.
The rapid depletion of funds may be one of the best things to happen to our business in years. Customers no longer have a sense of urgency. I have heard many say the money will be there for 8 months. I think they have become accustomed to a mentality if the manufacturers incentives end on the last day of the month, better ones will start the next day.
I know of at least a half-dozen appointments that didn't show that will be sorely disappointed they missed out on the "free" money.
What do y'all think?
I know of at least a half-dozen appointments that didn't show that will be sorely disappointed they missed out on the "free" money.
What do y'all think?
I've thought about how that mentality works and I'm wondering if there's a way to really instill urgency in our customers. Even when we have a particularly amazing deal up, customers seem to be much less enthused about it as a natural response.
How do we cure this?
- May 1, 2005
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House approves $2 billion more for 'clunkers'
The House passed legislation to inject $2 billion into "Cash for Clunkers" after the administration reported that the $1 billion federal program was running out of money shortly after it began.
The bill, which goes to the Senate next week, would transfer the new money from a U.S. loan-guarantee program for renewable energy systems that was funded under the stimulus package earlier this year.
Lawmakers mobilized in less than 24 hours with the Obama administration's support to draft, introduce and pass the bill on the last day before they break for a five-week recess.
"This is the first glimmer of hope we've seen in the auto industry," House Appropriations Committee Chairman David Obey, D-Wis., who sponsored the bill, said on the House floor.
The measure passed 316-109.
The rapid success of the $1 billion program lifted prospects for an industry beset by abysmal sales, bankruptcies and uncertainty.
"The downward spiral has been broken. We saw a stabilization in sales in the second quarter, and there will be a recovery in automotive sales," Mike Jackson, CEO of the largest U.S. dealership group, AutoNation Inc., said in an interview. "There's no question about it."
Automakers are due to report U.S. sales on Monday.
European model
The cash for clunkers program was modeled after similar government incentives in Europe, and offers consumers up to $4,500 to trade in older and less fuel-efficient vehicles to be scrapped.
A preliminary analysis by the Transportation Department shows that dealers sold 250,000 vehicles with the government benefit since July 1. The program began in earnest a week ago, when rules were released.
Officials said brisk sales exhausted the $1 billion that Congress had made available through Nov. 1.
The effect that the plan will have on the economy is unclear. Analysts have said they expect it to give the economy a bit of a lift in the current quarter.
Obama administration officials considered suspending the program but opted to keep it going through the weekend while options are considered.
Scramble
Leaders in the U.S. House of Representatives and Senate worked quickly with White House support to craft legislation that could be approved before Congress left for its month-long summer vacation. The House is due to recess on August 7.
"We feel confident that we'll have a solution that people can agree on moving forward and that the program continues," White House spokesman Robert Gibbs said.
The amount of the proposal could change as it moved closer to a vote.
In addition to stimulating sales, the program was aimed at boosting sales of General Motors Co. and Chrysler Group, both of which restructured under bankruptcy protection this year.
Fuel efficiency terms of the program were narrow enough to help domestic manufacturers qualify. But Senators Dianne Feinstein and Susan Collins have said any extension must include stricter efficiency and environmental requirements.
They were asking the Transportation Department on Friday for details on sales data such as makes and models sold with program rebates.
Very early indications showed that cars were selling better than pickups or SUVs. But it was unclear how the program had affected Toyota Motor Corp. and Honda Motor Co., makers of some of the most fuel-efficient cars.
Analysts expected the program, if utilized fully, to push U.S. sales above 10 million units for 2009, higher than the annual rate so far this year. - Original Article
The House passed legislation to inject $2 billion into "Cash for Clunkers" after the administration reported that the $1 billion federal program was running out of money shortly after it began.
The bill, which goes to the Senate next week, would transfer the new money from a U.S. loan-guarantee program for renewable energy systems that was funded under the stimulus package earlier this year.
Lawmakers mobilized in less than 24 hours with the Obama administration's support to draft, introduce and pass the bill on the last day before they break for a five-week recess.
"This is the first glimmer of hope we've seen in the auto industry," House Appropriations Committee Chairman David Obey, D-Wis., who sponsored the bill, said on the House floor.
The measure passed 316-109.
The rapid success of the $1 billion program lifted prospects for an industry beset by abysmal sales, bankruptcies and uncertainty.
"The downward spiral has been broken. We saw a stabilization in sales in the second quarter, and there will be a recovery in automotive sales," Mike Jackson, CEO of the largest U.S. dealership group, AutoNation Inc., said in an interview. "There's no question about it."
Automakers are due to report U.S. sales on Monday.
European model
The cash for clunkers program was modeled after similar government incentives in Europe, and offers consumers up to $4,500 to trade in older and less fuel-efficient vehicles to be scrapped.
A preliminary analysis by the Transportation Department shows that dealers sold 250,000 vehicles with the government benefit since July 1. The program began in earnest a week ago, when rules were released.
Officials said brisk sales exhausted the $1 billion that Congress had made available through Nov. 1.
The effect that the plan will have on the economy is unclear. Analysts have said they expect it to give the economy a bit of a lift in the current quarter.
Obama administration officials considered suspending the program but opted to keep it going through the weekend while options are considered.
Scramble
Leaders in the U.S. House of Representatives and Senate worked quickly with White House support to craft legislation that could be approved before Congress left for its month-long summer vacation. The House is due to recess on August 7.
"We feel confident that we'll have a solution that people can agree on moving forward and that the program continues," White House spokesman Robert Gibbs said.
The amount of the proposal could change as it moved closer to a vote.
In addition to stimulating sales, the program was aimed at boosting sales of General Motors Co. and Chrysler Group, both of which restructured under bankruptcy protection this year.
Fuel efficiency terms of the program were narrow enough to help domestic manufacturers qualify. But Senators Dianne Feinstein and Susan Collins have said any extension must include stricter efficiency and environmental requirements.
They were asking the Transportation Department on Friday for details on sales data such as makes and models sold with program rebates.
Very early indications showed that cars were selling better than pickups or SUVs. But it was unclear how the program had affected Toyota Motor Corp. and Honda Motor Co., makers of some of the most fuel-efficient cars.
Analysts expected the program, if utilized fully, to push U.S. sales above 10 million units for 2009, higher than the annual rate so far this year. - Original Article
- Apr 7, 2009
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HAS ANYONE HAD A DEAL FUNDED? Watched congress debate the infusion of cash for C.A.R.S. last night on C-Span. Great points made. Great job selling 250,000 cars in six days! Looks like it will be left up to us to pull the country out of this funk one car at a time. Keep the money flowing senate.
- May 1, 2006
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- Apr 6, 2009
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- Hyundai of St. Aug
Have only been able to submit 3 of the 15 deals so far, no accept/reject notices yet, going on over 60 hours with no response on the first one I submitted.
Before they add any other money to this program, they need to get their website stable! I'm sure there are more transactions being conducted on Amazon and Ebay at any one time, and their sites seem to work just fine.
That was a nice ammendment to the rule, though, about not having to disable the engine until you get reimbursed. See the cars.gov/dealersupport site for the change to the rule on this issue.
Before they add any other money to this program, they need to get their website stable! I'm sure there are more transactions being conducted on Amazon and Ebay at any one time, and their sites seem to work just fine.
That was a nice ammendment to the rule, though, about not having to disable the engine until you get reimbursed. See the cars.gov/dealersupport site for the change to the rule on this issue.
FIRST OFF - is ANYONE considering a demolition derby before killing their trades?
Just wondering
My real point is, I think the manufacturers should take a lesson from this and consider taking a monetary approach with their incentives.
Instead of saying '$1000 off for EVERYONE until a specific date' say '$1000 until this much money runs out.' Wouldn't that be better for their budgeting anyway?
It would certainly create some urgency.
-Bobby
Just wondering
My real point is, I think the manufacturers should take a lesson from this and consider taking a monetary approach with their incentives.
Instead of saying '$1000 off for EVERYONE until a specific date' say '$1000 until this much money runs out.' Wouldn't that be better for their budgeting anyway?
It would certainly create some urgency.
-Bobby
