Hoping to trade in your clunker for a new Ford Focus this weekend? Or perhaps a Toyota Prius? Good luck finding one. The Cash for Clunkers program has been so successful, automakers are simply running out of some of their most fuel-efficient cars.
The AP reports, "Ford had only a 25-day supply of Focuses at the end of July, according to Ward's AutoInfoBank," while the company aims for a 48-day supply of most of its models. "Nationwide, Ford had only 21,000 Focuses in stock, down from 38,000 at the start of July." For some dealers, it's become hard to get a hold of the cars. The AP says Richard Bazzy, who owns two Pittsburgh-area Ford dealerships, has "only two Focuses left and says Ford has told him it will ship only six more within the month. He's complained to his regional manager to no avail and said the clunkers program has cleaned out the Pittsburgh region's inventory."
Minnesota Public Radio notes, "Toyota says it still has a decent supply of Corollas, at 37 days....but there are shortages of the Prius gas-electric hybrid, with a 13-day supply."
The timing of the program has contributed to the shortage of some models. Many automakers traditionally use the summer months to pause production of the current model year's cars, retool factories to produce next year's models, and then resume production. That has left some dealerships running out of 2009 models, while awaiting delivery of 2010s. The Los Angeles Times reports, "Many automakers, responding to signs that the market for new cars was beginning to stabilize, were already ramping up production. But they noted that plans typically are made a month in advance, and pumping out more cars to meet an unexpected surge in demand isn't easy."
The Detroit Free Press reports, "Chrysler, which stopped production from May 1 through June 28, is down to less than 20 days' supply on models such as Dodge Caliber, Dodge Avenger and Jeep Patriot, which have sold well under the program." The company greeted the start of the Cash for Clunkers program with an offer to match the government's rebate on most of its cars, but has now scaled that program back to cover only a few models.
The shortages could have consequences for buyers and dealerships. Jeremy Anwyl, CEO of the automotive web site Edmunds.com, told the AP that "the unintended result is that vehicle prices are climbing. What we've created now is a shortage for key models. Prices are going up dramatically."
Dealers, meanwhile, worry that the shortages will cost them sales. Jim Seavitt, owner of Village Ford in Dearborn, told the Free Press that "the lack of inventory and the easing of pent-up demand would mean a slowdown in trades from their current breakneck pace."
If you're interested in the Cash for Clunkers program, check out our Cash for Clunkers page. If you're ready to buy, contact local dealers. For the latest news on the program, check out Cash for Clunkers news.
