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Local Car Dealers Praise Cash for Clunkers

A

Anonymous

Guest
Local new car dealers got big boost from Cash for Clunkers

Stories by PETER JOHNSON Tribune Staff Writer • October 11, 2009

Great Falls new car dealers say they thrived during a giddy August of crowded show rooms as potential buyers sought Cash for Clunkers program incentives.


And, for the most part, they say they avoided the debilitating hangover that many dealers experienced nationally when the federal program ran out of cash.
"We did very well in late July and August, with business spiking not only for new cars, but also for used vehicles once customers got on the lot," said David Krebs, general sales manager of Bennett Motors. "Our business had been down for about 12 months, causing pent-up demand, and the Cash for Clunkers program helped break the dam."

Bennett sold 25 new vehicles under the federal program, which provided buyers cash incentives to trade used vehicles for more fuel-efficient new models, he said, and plenty of other new and used cars, too. Sales were good for both Subaru and General Motors models, he said.
But new car sales were down about half in September, because the inventory was trimmed so much, Krebs said. Used car sales were higher.
"Thank God for October, when we'll be getting more new cars," Krebs said.
General Motors hired back 30,000 workers to make vehicles at reopened plants in the middle of Cash for Clunkers, he said. Krebs said Bennett normally has 50 new Subarus on the lot, but was down to just six last week before receiving new car shipments.

The Cash for Clunkers program spurred boom sales in the auto industry nationally from the last week of July through August, with nearly 700,000 consumers swapping eligible older vehicles for new cars and getting up to $4,500 lopped off the cost.

Great Falls used car dealers benefitted, too
October 11, 2009

The popular Cash for Clunkers program was designed to give U.S. consumers an incentive to buy new cars. But Great Falls used car dealers say the program helped them some, too, by kindling interest.



However, they say that by destroying nearly 700,000 trade-in "clunkers," the program might well create a shortage in older, second vehicles.
"I think Cash for Clunkers did create more focus in consumers' minds on the value of new vehicles," said Jim Taylor Jr. of Taylor's Automax, 4100 10th St. S. "But it had the reciprocal effect of spurring people to think of buying cars again in general."
"We noticed quite a few more people on our lot in August and experienced a slight increase in sales during that period," he said.
Taylor's did not have a drop in sales in September, after money ran out for the federal program.
"Our niche is late model, high-quality, low-mileage pre-owned cars and trucks priced considerably less than new vehicles," he said.
"And our inventory remains strong. We're prepared for the fall with plenty of trucks and SUVs for hunting and winter driving."
New car dealers may be experiencing "a hangover" from the government incentives that spurred some folks to buy cars earlier than planned, Taylor said.
There also could be a shortage of lower-end, used vehicles that serve as basic transportation for lower income people and second family cars for teen drivers, he said. That's because some 700,000 cars traded in during the federal program were taken off the market and crushed.
Still, Taylor believes Cash for Clunkers was a good idea.
"Anything that creates consumer interest during a recession in buying cars is good for everybody connected to the auto industry,"
he said. "Locally, all car dealers were feeling a modest slump."
Used car sales also picked up in August and September at Pete's Auto Sales locations at 3456 10th Ave. S. and 3845 10th Ave. S., said sales manager Terry Douglass.
"We exceeded sales numbers from previous years in both months," he said. "The federal government did a lot of promotion for new car sales with Cash for Clunkers and we in effect piggy-backed it."
 

Mike

Well-known member
The car dealers who did not participate in the Cash For Clunkers program are using that fact in recent advertising, with huge benefits.

The general public know it was just a scam to pay back the UAW. :roll:
 

aplusmnt

Well-known member
Who cares if dealers benefited or not? Point is it hurt all of rest of us. They taxed us to help pay for someone else a freaking car!

That is as unfair as it gets! And miss use of tax money!
 
A

Anonymous

Guest
Oldtimer said:
Local new car dealers got big boost from Cash for Clunkers

Stories by PETER JOHNSON Tribune Staff Writer • October 11, 2009

Great Falls new car dealers say they thrived during a giddy August of crowded show rooms as potential buyers sought Cash for Clunkers program incentives.


And, for the most part, they say they avoided the debilitating hangover that many dealers experienced nationally when the federal program ran out of cash.
"We did very well in late July and August, with business spiking not only for new cars, but also for used vehicles once customers got on the lot," said David Krebs, general sales manager of Bennett Motors. "Our business had been down for about 12 months, causing pent-up demand, and the Cash for Clunkers program helped break the dam."

Bennett sold 25 new vehicles under the federal program, which provided buyers cash incentives to trade used vehicles for more fuel-efficient new models, he said, and plenty of other new and used cars, too. Sales were good for both Subaru and General Motors models, he said.
But new car sales were down about half in September, because the inventory was trimmed so much, Krebs said. Used car sales were higher.
"Thank God for October, when we'll be getting more new cars," Krebs said.
General Motors hired back 30,000 workers to make vehicles at reopened plants in the middle of Cash for Clunkers, he said. Krebs said Bennett normally has 50 new Subarus on the lot, but was down to just six last week before receiving new car shipments.

The Cash for Clunkers program spurred boom sales in the auto industry nationally from the last week of July through August, with nearly 700,000 consumers swapping eligible older vehicles for new cars and getting up to $4,500 lopped off the cost.

Great Falls used car dealers benefitted, too
October 11, 2009

The popular Cash for Clunkers program was designed to give U.S. consumers an incentive to buy new cars. But Great Falls used car dealers say the program helped them some, too, by kindling interest.



However, they say that by destroying nearly 700,000 trade-in "clunkers," the program might well create a shortage in older, second vehicles.
"I think Cash for Clunkers did create more focus in consumers' minds on the value of new vehicles," said Jim Taylor Jr. of Taylor's Automax, 4100 10th St. S. "But it had the reciprocal effect of spurring people to think of buying cars again in general."
"We noticed quite a few more people on our lot in August and experienced a slight increase in sales during that period," he said.
Taylor's did not have a drop in sales in September, after money ran out for the federal program.
"Our niche is late model, high-quality, low-mileage pre-owned cars and trucks priced considerably less than new vehicles," he said.
"And our inventory remains strong. We're prepared for the fall with plenty of trucks and SUVs for hunting and winter driving."
New car dealers may be experiencing "a hangover" from the government incentives that spurred some folks to buy cars earlier than planned, Taylor said.
There also could be a shortage of lower-end, used vehicles that serve as basic transportation for lower income people and second family cars for teen drivers, he said. That's because some 700,000 cars traded in during the federal program were taken off the market and crushed.
Still, Taylor believes Cash for Clunkers was a good idea.
"Anything that creates consumer interest during a recession in buying cars is good for everybody connected to the auto industry,"
he said. "Locally, all car dealers were feeling a modest slump."
Used car sales also picked up in August and September at Pete's Auto Sales locations at 3456 10th Ave. S. and 3845 10th Ave. S., said sales manager Terry Douglass.
"We exceeded sales numbers from previous years in both months," he said. "The federal government did a lot of promotion for new car sales with Cash for Clunkers and we in effect piggy-backed it."


I sure wish I could find where general motors called back 30 thousand auto workers.

You are here: Home / Business News / GM to call back 1,350 workers
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Receive Free UPI Newsletter.Published: Aug. 18, 2009 at 6:56 PM
Order reprintsDETROIT, Aug. 18 (UPI) -- General Motors Co. said Tuesday it would call back 1,350 laid off workers as sales jumped with the U.S. cash for clunkers program.

Among the schedule changes, GM said it would keep an Orion Township, Mich., plant open through most of November. The plant had been scheduled to close in mid-September, CNNMoney reported.

In a statement, GM group vice president for global manufacturing and labor Tim Lee said, "the uptick is an encouraging sign that vehicle sales are turning around, and we will ramp up quickly to meet that demand."

In addition, "we're probably not done," said Mark LaNeve, GM vice president of U.S. sales, suggesting production increases could be added through the year and into early 2010.

A prolonged sales slump throughout the recession led GM into bankruptcy this summer.

The reorganized GM, supported by billions of dollars in federal aid, benefited from the so-called "cash for clunkers" program in which the government offered rebates of up to $4,500 for some car owners who traded in old vehicles for cars with better fuel efficiency.

General Motors hired back 30,000 workers to make vehicles at reopened plants in the middle of Cash for Clunkers,

Unless I have missed something this is a lie plain and simple.
 

Steve

Well-known member
lets see,.. GM sold Hummer to China...

and is unable to sell Saturn.. (a small car maker)..

seems all is not rosy in the world...

The Ten Most Purchased Vehicles (vehicle's EPA mileage)
1. Ford Focus (27-28 mpg)
2. Honda Civic (24-42 mpg)
3. Toyota Corolla (25-30 mpg)
4. Toyota Prius (46 mpg)

5. Ford Escape (20-32 mpg)
6. Toyota Camry (23-34 mpg)
7. Dodge Caliber (22-27 mpg)
8. Hyundai Elantra (26-28 mpg)
9. Honda Fit (29-31 mpg)

10. Chevy Cobalt (25-30 mpg)

by most accounts it looks like foreign brands reaped about half the benefit of the program..or 6 out of 10.. cars under cash for clunkers were foreign...
 

hopalong

Well-known member
Have they gotten paid yet?????
Last I heard the money was pretty solow in coming in leaving some dealerships to have some financial difficulties, resorting to BORROWING money to make payroll and other expenses.

Yep a real boost to the economy :wink: :wink: :wink:
 

loomixguy

Well-known member
Now new car sales are in the tank.

Within the last 30 days I purchased a new to me Deville from my local Ford dealer, as Daughter #1 commandeered our Park Avenue. I have known these folks since I started doing bidness with them in late 2002. They said they refused to participate in the cash for clunkers program, as they were down on inventory. The salesman said that the only ones who would really benefit were the big volume dealers whose lots were full, but even then there were plenty who had to borrow money while waiting for their "welfare checks" to arrive.

They also said they had had quite a noticeable increase in sales since Ford didn't accept welfare money like GM and Chrysler.

On a side note, the local Cadillac dealer, who had been a Cadillac dealer for over 50 years lost his Caddy dealership, as had other successful Caddy dealers in the state. Seems Nebraska is only allowed 2 Cadillac dealers now, one in Omaha and one in North Platte.

BTW....the Boss and I love the Deville.....26-28 mpg on the highway and 15-18 in town....and the ride and drive is outstanding.
 

loomixguy

Well-known member
Sorry...not gonna happen....if Jigs were to show up here for a family reunion, the next morning the Deville would be covered in K State and PowerCat bumperstickers! :lol: :shock: Then I would be FORCED to get rid of it, as it would be tainted forever! :lol:
 

jigs

Well-known member
you are not as dumb as you look there Loonie loomixguy !!!

however, I do know how to read....and I am sure your local well driller would be happy to show me around the "big city"

I will be there for the annual Delka Thanksgivin, and you will have a fancy new CAT-alac !
 
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