Psst: Cash For Clunkers July-August 'Success' Causes Serious September Sales Swoon

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65343-Down-graphAs far as the establishment media is concerned, the Cash For Clunkers program Uncle Sam conducted in July and August was a smashing (excuse the term) success. That's the case, despite the deliberate destruction of hundreds of thousands of perfectly usable vehicles, late payments to dealers (the USDOT is finally catching up), the program's failure to give much relief to government bailout beneficiaries General Motors and Chrysler, and less than perfect communications about tax consequences to buyers.

A week ago, there was news indicating that September auto sales will be down drastically, and that most of the blame for the nosedive belongs to Cash for Clunkers. If you haven't seen any establishment media coverage of this, it's because there has been very little. A Google News Search on ["september sales" "cash for clunkers"] (typed exactly as indicated) for September 17-25 returned all of 68 items (Google's indication that there are over 400 is wrong), and a significant number of them are stories in the various cities served by bizjournals.com.

Here is part of Chrissie Thompson's Automotive News report from September 18 describing how dire things have gotten at dealer showrooms around the U.S.:

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September sales rate may be lowest on record
Edmunds' SAAR of 8.8 million would be lowest in nearly 28 years 

September's light-vehicle sales rate will fall to 8.8 million units, consumer auto site Edmunds.com said. That would be the lowest rate in nearly 28 years, tying the worst demand on record. 

After the cash-for-clunkers program boosted August sales to their first year-over-year increase since October 2007, demand has plunged. In at least the last 33 years, the U.S. seasonally adjusted annual rate has only dropped as low as 8.8 million units once -- in December 1981 -- with records stretching back to January 1976.

Amid a global recession, U.S. sales fell to 13.2 million units in 2008, from 16.2 million in 2007. The slide continued, with demand ranging from 9.1 million to 9.9 million in the first half of this year.

..... Now that consumers can't receive $3,500 to $4,500 for trading in gas guzzlers for new vehicles with better fuel efficiency, they aren't rushing to purchase vehicles, Edmunds.com analysts said.

It will be more than a little interesting to see which manufacturers are hurt the most, and the least, by all of this. It will also be interesting to see how or if the establishment press can still portray the Clunkers program as a success if September really turns out as badly as feared.

Image found at AdWeekMedia.com.

Cross-posted at BizzyBlog.com.

—Tom Blumer is president of a training and development company in Mason, Ohio, and is a contributing editor to NewsBusters


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DAH

DO YOU BELIEVE THE CLUNKERS WERE ACTUALLY TRASHED?????

Some

 

The dealers that supported obama probably did, simply because they were stupid enough to think he had the brains to assigne somebbody to check up on them.

Most probably went to chop shops to be dismantled and sold for parts.

The VIN would show up and cause problems for the dealer later, but the engine, transmission #', will never register on a search.

http://gjresult.com

 

Time to get a good deal?

If this is the "worst" demand in 28 years, I wonder what kind of deals the car dealership will give out now to try and get me in the showroom.

 I've got a 11 year old minivan that is still running just fine, it would be fun to see what they would do to sell me a car.

Mine is only 5 years, but

Mine is only 5 years, but I'm keeping an eye out there. I only wish Dodge/Chrysler minivans were still something I'd buy.... ah well, Ford might have won my business, thanks to our government!

WE THE PEOPLE of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare,

But....

 

Look how many obama stickers were taken off the roads.

 

http://gjresult.com

 

This is true. I've seen

This is true. I've seen lots of clunkers where the stickers - expressing every last liberal sentiment possible, plus support for all the Democrat presidential candiates since Dukakis -  seemed to holding the body together. Now, if we could get the eco-lib bumperstickered Priuses off the road...

The "Mainstream" Media: By liberals. For liberals.

Seriously, those morons who

Seriously, those morons who are getting 45 miles per gallon - what the hell were they thinking???  Suckers. 

xoxo - Ted

That would be the ones with

 

At least a few of their friends and relatives in the cemetary?

Not to harp on a dismal subject but.....

http://ut.zerofatali...

This begins as audio only and when it goes to video you need to full screen it.

http://gjresult.com

 

"what the hell were they

"what the hell were they thinking???"

Uh, I know exactly what they were "thinking" - they have every last one of their random "thoughts" on bumperstickers, plastered on their ugly cars.

The "Mainstream" Media: By liberals. For liberals.

So it's not the fuel

So it's not the fuel efficient cars you have the problem with, it's the fact that liberals put bumper stickers on their cars? 

xoxo - Ted

Er, from the context of my

Er, from the context of my comment, you couldn't tell that was what I was talking about? Where did I mention a problem with fuel efficient cars in general?  Gee, I always thought liberals deliberately took conservatives' words out of context. I'm beginning to think that it may be an involuntary action. 

The "Mainstream" Media: By liberals. For liberals.

Well you did say you wanted

Well you did say you wanted the bumper stickered cars off the road, not the bumper stickers off the cars. 

xoxo - Ted

What kind of mpg did Ted

What kind of mpg did Ted Kennedy's Oldsmobile get before he drove off the bridge and killed Mary Jo Kopeckne, as oppossed to after it dried out and they took her body out of the car? Does killing someone in your car lower it's mpg? 

I'm not sure what Ted

I'm not sure what Ted Kennedy's accident has to do with this topic. 

xoxo - Ted

I'm not sure what

 

MURDER while DRUNK has to do with this topic either.

But, YOU did bring teddie into a discussion of liberals in cars.

http://gjresult.com

 

Whatchu talkin' about,

Whatchu talkin' about, Willis?  My screen name suddenly becomes the topic?  Strrrrrrreeeeeeeetch... 

xoxo - Ted

The truck vs. the hybrid

ILTK, I think the same thing to myself everytime I drive past those suckers in my truck.  Sure, you get your 45 mpg, and that's great, if that is your primary concern. 

But my truck allows me far more independence than the Prius driver.  It is going to be the Prius driver that is going to be whining to me, begging to borrow my truck's services to help them move something.  (As a bumper sticker says - the only one I will consider getting: "YES, it's my truck - NO, I will not help you move".)

The hybrid that gets 45 mpg additionally does not generate the massive quantities of beer my truck has.  The conversating goes like this: "Will you help me move?"  "No."  "I'll buy the beer."  "What time do you want me to be there with the truck?"

Less independence, less beer...seems like a total lose-lose to me.  Gimme my Ram.   

"CONSUMED DEMOCRACY RETURNS A SOCIALIST REGIME" - Slayer, "Fictional Reality", from Divine Intervention (1994)

You're funny, Unsane.  I

You're funny, Unsane.  I think I've said that before, but I truly mean it.

You're totally on to something here.  Let me just tell you that when purchasing my last few cars over the last 5 years, several friends have suggested I buy a pickup so "I can help them move."  Sorry, but I don't do that anymore.  I feel that once you're past 30, moving is your own problem.  You need something big moved?  Rent a U-Haul.  I believe they cost about $19.99 a day, plus $.30 a mile.  

Here's the thing though.  Rather than the 12 pack (and pizza) compensation for helping you move, I'd prefer to stay home, spend the 10 bucks on a case of beer myself, and watch the game.  And with the money I save on gas with my 45 mpg hybrid, that beer becomes free.  

PS: I drive a MINI Cooper, so unless you need help moving a suitcase, count me out.

xoxo - Ted

Another crappy gov plan

As with any government attempt to manipulate economic activity, this 3 billion dollar boondoggle did what? Got a few thousand "clunkers" off the road. This sales lull is just the beginning of the negative ramifications of these idiots.

What REALLY makes me mad!

...is that, I as a taxpayer, didn't even get so much as one thank you card from the car buyers! Ingrates!! 

"The bureaucracy is growing to meet the needs of the growing bureaucracy"

 

Mighty... We are upset as

Mighty...

We are upset as well.

'Doubling down on stupid is not a particularly good idea'~Breitbart

It's funny BT...

Everytime I buy an new car I get a thank you from the dealer! (And sometimes a Birthday card a few years later)  Ironic isn't it? Shouldn't the dealers have sent those thank you cards to the taxpayers? Doesn't the Post Office have a catch all box for taxpayers like for Santa Claus? It should damn near be full by now! :-)

 

"The bureaucracy is growing to meet the needs of the growing bureaucracy"

 

DAH

COULD THEY HAVE BEEN SHIPPED TO MEXICO, IRAQ, AFGHANASTAN, ALL OF AFRICA, THEY MAKE GREAT CAR BOMBS!!!!

If people weren't buying

If people weren't buying cars before, that probably means many people felt they couldn'y afford to do so. So, just like with Fannie and Freddie, the government entices people to make a purchase they probably couldn't afford. Car boom bubble becomes car bust. Sound familiar? By the way, why couldn't the automakers behave like other businesses? When there is an excess of inventory not moving, they slash prices. I don't see Macy's offering government tax checks for old clothes when you buy a new wardrobe.

The "Mainstream" Media: By liberals. For liberals.

Dealers still made out

The fun thing about this program is that the dealers jack up MSRP about 3 weeks before the program started.Then B/O really stuck to us when you have income tax so call rebate.

Typical of the liberals who failed Econ 101

They canibalized the future car sales and sucked them all into August. It's the same thing they are doing to the US economy on a much grander scale. All the borrowing and deficit spending is sucking any economic growth into the present and stealing it from the future.

Throw 'da bums out!!!

no incumbent re-elected, with very few exceptions!

www.loyaltoliberty.com

Cash for Clunkers was an...

ill-conceived stunt and nothing more. It amounted to a foolish and very expensive taxpayer funded band-aid for a huge problem. The ridiculous notion that Cash for Clunkers would provide a jump-start that would lead to a sustained increase in auto sales was absurd on its face, and has proven to be exactly what is was...a stunt.    

"The problem is not that people are taxed too little...the problem is that government spends too much." ~President Ronald Reagan

Sky... Right you are,

Sky...

Right you are, plus look at all the dealerships they destroyed along the way.

'Doubling down on stupid is not a particularly good idea'~Breitbart

bt..The whole thing and...

its repercussions have been asinine and very damaging. 

The dealership (which is owned by a prominent and very active Republican, btw...) in my town that sells Buicks, Cadillacs, Pontiacs, Jeeps and Hondas, has lost all of its car lines except the Hondas. We have a GMC dealership and a Chevy dealership, but as far as I know, neither of them will be selling Buicks or Cadillacs. There is another Jeep dealership, but if someone wants a Caddy or a Buick (we like and own 2 Buicks), they'll have to drive at least an hour to another town to shop for one. I don't know know how our Buick/Caddy dealer is going to stay in business with just Honda...Maybe he'll try to attract a foreign car maker dealership like VW or maybe Volvo...What a mess...The trail of disasters that have been left in the wake of Obama's poor decisions just keeps growing.

1137 days to go...   

"The problem is not that people are taxed too little...the problem is that government spends too much." ~President Ronald Reagan

Sky... Dang it all...I

Sky...

Dang it all...I hate to see those numbers in four digits at the end of your post...much better when it gets to the three digits.

One thing about it, the older you get, the days really do fly by.  ;-)

'Doubling down on stupid is not a particularly good idea'~Breitbart

bt...Yep, that they do, but...

the sooner the next 1137 days go by, the better. 

"The problem is not that people are taxed too little...the problem is that government spends too much." ~President Ronald Reagan

Right

Clearly the problem is Obama's failure to fix the economy. Lets just pretend we didn't all just watch Reaganomics wreak havoc on the economy.

 You guys are like arsonist that stand around watching a fire you started burning, complaing that the firemen trying to put it out are going to cause water damage.

 

Clunkers trashed

So how many tons of CO2 created smelting old cars?  That also shafted the back to school car market.  I suspect used car sales also fell in most price ranges.

But "co2 is a harmless gas,

But "co2 is a harmless gas, its the cow farts we need to worry about"  right?

Neil Cavuto was exactly right

From mortgage assistance to cash for clunkers, our government has created a culture where people refuse to buy things without a welfare check attached to them.

 

not part of that culture nor will ever be

I can safely say I'll never be in that culture, I don't WANT to be in that culture, that CFC was asisine as the initials used to make the same acronym of something else that was banned because it was eeeeeeeevil.(hint: it was in hair spray cans as a propellant)

Just because something's deemed "old" doesn't mean you HAVE to throw it away.  I don't want to get in the business of being caught in car payments or anything like that unless I absolutely have to, and that's my decision to make, not the damn government's.

My truck's a '97 and gets 25 mpg on the highway.  Yeah, it's not as fancy as the newer ones of the same model type, but it works, it runs great, looks decent, where's the sense in giving that up?  

So that makes me part of a different culture, huh?  Big whoop.

-Jon

Have you looked at the

Have you looked at the qualifying auto list?  I don't know if a truck getting 25 mpg qualified under the program. 

xoxo - Ted

you didn't read the whole thing

Did you not see the sentence that followed that?  I had no intention of looking at the "qualifying auto list" nor do I care what it has on there.  Why would I look at something that I had no intention of making use of?

-Jon

Yeah, I read it.  Twice.

Yeah, I read it.  Twice.  My question was rhetorical given that you'd already stated you had no intention of trading in.  Rather, even if you wanted to trade in during the program, you wouldn't have qualified anyway.

But what really humors me here is how all of the NB members who took advantage of the program wouldn't dare comment on this page and risk being tagged a hypocrite.  I even ran into one fellow who was so upset with the program, his face was turning purple.  The truth is that he went to trade in his clunker a day late and missed out. 

xoxo - Ted

Sounds like projection

Please list those NewsBusters that you KNOW are not commenting because they used the program and therefore risk being tagged as hypocrites. "One fellow you ran into" doesn't count unless you can name him as a regular NB poster.

Chai

“When all government...in little as in great things, shall be drawn to Washington as the center of all power, it will render powerless the checks provided...” Thomas Jefferson

Projection?  More like

Projection?  More like protection.  I would rather not alienate those who trust me. 

xoxo - Ted

projection? - protection

 

Would you really alienate yourself?

http://gjresult.com

 

Yeah

Would you? then stop using them there fancy pants words like "rhetorical. "

Not holding my breath

I wonder when the old media will start reporting on how many of these folks that traded in their perfectly-good-but-old cars for cars they couldn't afford are having them repossessed.

My 13 year old Corolla still gets 27 mpg [I've recently checked]. EmmyLou ain't purty, but she gets me where I'm going :-)

Chai

“When all government...in little as in great things, shall be drawn to Washington as the center of all power, it will render powerless the checks provided...” Thomas Jefferson

Your Corolla wouldn't have

Your Corolla wouldn't have qualified under the program anyway. 

xoxo - Ted

Spokesman for the program?

Spokesman for the program?

Just a counter argument.

Just a counter argument.  Or is that not allowed? 

xoxo - Ted

I think Greg is just

I think Greg is just pointing out that sometimes you are such a BuzzKill! 

"The bureaucracy is growing to meet the needs of the growing bureaucracy"

 

Just keeping things fair and

Just keeping things fair and balanced ; ) 

xoxo - Ted

NO

There's no room for you people and all your facts and knowledge and stuff. If we wanted the learn stuff and talk all truth and stuff, we wouldn't be here would we now? He was just makin an asside see.

 

 

Reading comprehension 101

Did you actually read my post, ted lover? I never any interest in using the program, my mileage comment was an aside. My actual  comment was that a lot of fools who were sucked in to it would probably wind up having the cars they couldn't really afford repossessed

Chai

“When all government...in little as in great things, shall be drawn to Washington as the center of all power, it will render powerless the checks provided...” Thomas Jefferson

Hey Chai... I know where

Hey Chai...

I know where you're coming from...there are times now and thenI still miss my Corolla...oh the memories.  ;-)

'Doubling down on stupid is not a particularly good idea'~Breitbart

Car memories

I miss my 1970 Opel GT.  I loved that car.

 

"Reason and persuasion are the only practical instruments against error.  To make way for these, free inquiry must be indulged" - Thomas Jefferson

Hey FF... Our cousin

Hey FF...

Our cousin bought one brand new about that year, it was a cream yellow color...we had some good road trips all over Idaho in that, still can't believe how many we could cram in that bugger...she would go about anywhere too.

'Doubling down on stupid is not a particularly good idea'~Breitbart

It was a great car.

I drove it from San Diego to Virginia Beach in 3 days and it did great.   We were getting 40 mpg on the open highway in the flat states.  I put a lot of work and money into keeping it up but it got to the point where it was really hard to get parts for it, so I sold it to a guy who collected them.

"Reason and persuasion are the only practical instruments against error.  To make way for these, free inquiry must be indulged" - Thomas Jefferson

Yeah...

And I miss my 1968 AMC Javelin SST 390 0-60 PDQ.

 

http://gjresult.com

 

BT

Love my EmmyLou [her official color is Emerald green, so I named her after EmmyLou Harris]

Chai

“When all government...in little as in great things, shall be drawn to Washington as the center of all power, it will render powerless the checks provided...” Thomas Jefferson

Great taste Chai. Mine

Great taste Chai.

Mine was a maroon color...I called it my Little Die-Hard.

A good friend once told me you could take a sledge hammer to the engine and it still wouldn't die...true too.

'Doubling down on stupid is not a particularly good idea'~Breitbart

Bill is still trying to get

Bill is still trying to get his $4,500 for Hillary.

Seller's remorse

Imagine the hue and cry to come when those who can't afford a newer car realize that because of Cash for Clunkers, there will be no older cars cheap enough for them to buy? The have been turned into scrap metal to be sold to other countries.  So, once again, we Americans lose.  

 

Car ownership in many countries is limited to the wealthy.  Americans need to get used to the idea.  At least it will keep our kids in school instead of dropping out to work to pay for their car.

Right!

They got rid of all the used cars in America and no one is making used cars anymore!

 

Science flies you to the Moon. Relgion flies you into a building!

and no one is making used cars anymore!

They sure do cost more? Oh ,,,,what,, you didnt think of that?

 

 My Gov. thinks I am dangerous, so be careful

"Television is a freak show" Bernie Goldberg

Yeah what a failure

Clunkers did nothing to stop Iran from launching a nukeclear missle (as reported by Rush today). We still have a 5 day work week, Reagan's birthday still is not a holiday, clearly it was a complete failure.

 

 

Science flies you to the Moon. Relgion flies you into a building!

No, the utter failure is you ....

.... in that you've failed to make a point, and failed in your pathetic attempts at humor.

Welcome to NewsBusters, troll.

My name is Dave, and I am the official troll-greeter here at NB.

I certainly hope your stay with us, however brief, is a pleasant one.

BTW, just what, exactly, is a "nukeclear missle?"

Sounds scary.

:-O

Let me know if there is anything I can get for ya.

See ya 'round the threads.

-Dave

The election of 2010 will be our last chance to save our republic. -Neal Boortz

Ah! a drunk Troll! we need more of those!

NOT...like we need more bureaucrats! 

"The bureaucracy is growing to meet the needs of the growing bureaucracy"