The official Cash for Clunkers start date isn't until July 24, but already the program is generating some movement in auto sales.
The New York Times reports that Hyundai, which started giving the trade-in rebate early, says the program "is driving 10 percent of the company's new car sales." Also, according to the Times, "Mr. Zuchowski also cited Hyundai survey data from late May, which indicated that 38 percent of potential car buyers knew about the C.A.R.S. program and 11 percent were delaying purchases and waiting for the program to go into effect."
As car buyers gear up from the program to go into effect, Motor Trend has released its list of cars they would buy in order to take advantage of the government rebate. The list includes some of the cars you'd expect, like a Honda Civic, but there are also a few surprises, like the BMW 328d -- its high-mileage diesel engine qualifies it fror the program.
Minnesota Public Radio reports that consumers are ready to take advantage of the program. They quote Jesse Dumas, owner of a 1994 Ford F-150, as saying, "I'm hoping to trade it in here and get something a little bit more economical thanks to the American government." MPR also says that Scott Lambert, the executive director of the Minnesota Auto Dealers Association, hopes that Minnesota auto dealers will net 5,000 sales from the program. They add, "Lambert said $1 billion isn't all that much money when spread among thousands of car dealers and millions of prospective car buyers. And Lambert points out that the folks with the clunkers have to be ready to make payments on a new vehicle."
Still, the New York Times quotes Hyundai's Vice President of sales, Dave Zuchowski, as saying that Hyundai's early momentum from the program challenges the idea that people with clunkers to sell "must be very poor and don't have enough money to buy a new car." Zuchowski told the Times, "many owners have clunkers as a second or third car, as a vehicle for their college-age kids," or because they believe in getting as much use from a car as possible.
Some areas are hoping the program will spur more activity in local economy than just car sales. The Wall Street Journal reports, "Dealers are gearing up with online and newspaper ads inviting potential buyers to stop by and see if they are eligible." The Phoenix Business Journal reports that Courtesy Chevrolet, in Phoenix, "is doing some advertising and direct mail on the program to draw in more customers, and it is closing one or two deals a day as a result."
If you're interested in the Cash for Clunkers program, check out our Cash for Clunkers page. If you already know which car you want, you can contact local dealers here. For the latest news on the program, check out Cash for Clunkers news.
