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August Auto Sales Up About 1% Thanks to Clunkers Program

Posted Sep 02, 2009 01:30pm EDT by Tech Ticker in Investing, Products and Trends, Recession, Autos

Indeed the taxpayer-funded Cash for Clunkers program boosted auto sales in August. Ford was a winner with a 17.2 percent sales gain compared with August a year ago. But both GM and Chrysler posted lower sales versus August 2008.

But as our guest Jeremy Anwyl, chief executive of Edmunds.com, points out, was the clunkers program ultimately needed?

"What happens when you have a big incentive like Cash for Clunkers is it brings people into the market but many of these people were going to buy a car at some point in the near future anyway," Anwyl says.

Longer term, the "car business has reached some level of stability and its even modestly improving even without the Cash for Clunkers program," Anwyl says. "Eleven to 12 million is not an unreasonable forecast” for car sales next year, he added.

But if Hyundai's sales are any indicator, the consumer remains focused on affordability. Among the foreign auto manufacturers, Hyundai's August sales surged 47 percent  versus a year ago. 

30 Comments

GeorgeK
GeorgeK - Wednesday September 02, 2009 01:46PM EDT

LOWER SALES FOR GOVERNMENT MOTORS.... this is not good... Lets just send our dollars to Japan..... In California I have a friend that is a Chevy Dealer and he says after the CFC progam ended so did his sales. Wait till October when the real sales data is out for after CFC.))))) While we still bleed jobs everyone will drive less the sales figures will fall...... We have to start loaning... our problem is in the banks its not with CARS... FIX HOUSING AND FIX THE ECOMOMNY... ITs not HEALTH CARE ... we have to start loaning for homes when the guy has a down payment. We have to insert money into Small Business...

yogi9448
yogi9448 - Wednesday September 02, 2009 01:47PM EDT

Good for Ford.....On my stock short list of buys in the next Bull run.....I wish they would sell some of their Euro cars here, including the diesel that gets over 50 MPG.........If you want to see something really cool, check out TopGears Ford Fiesta road test web video; being chased in a mall by baddies, field test with the royal marines - priceless family fun.

toby
toby - Wednesday September 02, 2009 01:51PM EDT

Destroying all of the "clunkers" that were traded in has a secondary (admittedly modest) effect. These running vehicles were taken out of the used car marketplace. To some degree this will push the entire spectrum of future car transactions toward the direction of a new car purchase. Now that the government owns a large share of the domestic car market, this probably is not an UNintended consequence.

Yahoo! Finance User
Yahoo! Finance User - Wednesday September 02, 2009 02:05PM EDT

GM & Chrysler ran out of cars that qualified for the cash for clunkers program. Was that because the cost of the cars was over $45,000, or because the cars that qualified in price didn't have high enough gas mileage? No wonder they're going out of business.

Yahoo! Finance User
Yahoo! Finance User - Wednesday September 02, 2009 02:16PM EDT

Your so right about Housing... We need to look at how much is being put down on the home not if someones job status. Even Government employees are now at risk. We have to start our economy again. We let these FOOLS in Congress worry about Health Care instead of the Ecomony and we will all fail..... OBAMA is making the decisions and has never even been a Governer let alone a businessman. HE IS ON A SOCIAL DRIVEN AGENDA..... Wait and soon you will find they change the name on the Corvettee to MichelleO

Brian
Brian - Wednesday September 02, 2009 02:18PM EDT

The whole cash for clunkers program is just creating an illusion and propping up the books for the auto industry. Now, the cash for appliances is next up to do the same. The numbers show that this will only make temporary rebound, while the economy will still sag, and both industries are sure to follow suit. Sorry to tell you all but.., pumping billions of dollars into any system, or market, only makes it seem like things are getting better. The recession is not over, we're experiencing a slight rebound.

Yahoo! Finance User
Yahoo! Finance User - Wednesday September 02, 2009 02:22PM EDT

Maybe the government can help the taxpayers by subsidizing us with lower taxes not increased taxes (or hide the increased taxes through increased 'fees' going up for everything from a driver license to a fishing license....what a joke) Obama and the Dems are spending your, your children and grandchildren future taxes now, handcuffing us with the largest amount of debt in the history of the world. Is this the best we've got??? Or is it that no one wants to be in politics anymore except white collar criminals and scam artists who can't find a job in the private sector?

Yahoo! Finance User
Yahoo! Finance User - Wednesday September 02, 2009 02:31PM EDT

I can’t believe we’re less than a year into this mess (which is likely to last a decade) and people are already freaking out. I can’t wait to see how they’ll be taking it a year from now. Come on, go-getters! Let’s see what you can do in the midst of a depression.

Dog
Dog - Wednesday September 02, 2009 02:31PM EDT

Recession is over according to the Fed/Fox.. all you Chickens can resume your normal, miserable lives now..

Yahoo! Finance User
Yahoo! Finance User - Wednesday September 02, 2009 02:33PM EDT

America is still number 1.. hooray... unfortunately it's number 1 in borrowing and printing money with little hope of paying it back without choking off the middle class...

Yahoo! Finance User
Yahoo! Finance User - Wednesday September 02, 2009 02:37PM EDT

You're boring us with your repetitive, party line blather Chuck.. got anything original to say.. I always wipe my bung with my tax return before I send it in....

Yahoo! Finance User
Yahoo! Finance User - Wednesday September 02, 2009 02:40PM EDT

Chuck - Wednesday September 02, 2009 02:24PM EDT Health Care was a diversion from the real issues.///// yes, health care is unimportant.. just as your blather is unimportant

Yahoo! Finance User
Yahoo! Finance User - Wednesday September 02, 2009 02:47PM EDT

I am so happy I could take my Tax Money and Bail our Government Motors even more. Why did they not just lower the sales prices across the board. Remember all the savings that were to come by letting them BANKRUPT????? WHAT HAPPENED TO THAT... How come all these cost savings did not get on to the Price Tag..... This is just Bull....You know in Asian Countries the Budist Monks refuse food and then burn themselfs in the streets.... In the US. we go POSTAL in the workplace..... this is going to get interesting in a country based on entitlement.

Mike
Mike - Wednesday September 02, 2009 02:59PM EDT

Well of course they just borrowed from the future months - as long as unemployment continues the way it's going it can't possily increase. No one is out buying big ticket items - not in this economy.

Yahoo! Finance User
Yahoo! Finance User - Wednesday September 02, 2009 03:12PM EDT

WHAT MORONS..... really best month in a long time???????????? gee wonder why????????????? BARACKNIFONG GIVING TAX PAYER MONEY AND GEE WHIZ..... DULLARDS...... BAWHAHAHAHAAH.... IDIOTS.... OBAMA TELLING YOU WHAT CAR TO DRIVE... OBAMA IS A MARXIST.. NEXT HE IS INDOCTRINATING THE SCHOOL SYSTEM WITH HIS NAZI SPEECHES TO ALL SCHOOLS.. THIS GOON IS DANGEROUS.. OBAMA THE MARXIST...

Whit Chambers
Whit Chambers - Wednesday September 02, 2009 03:04PM EDT

If government is so good, why not government farms? why not government cars (remember the Yugo)? why not government grocery stores? why not government bakers? why not government builders? why not government homes? why not government made computers? why not government made phones? why not government TV? why not government radio? why not government textiles? why not government fishing fleets? why not government car insurance? why not government doctors? why not government made printers? why not government made MRI machines? why not government restaurants (coming soon… bread lines)? Other suggestions?

Yahoo! Finance User
Yahoo! Finance User - Wednesday September 02, 2009 03:20PM EDT

Government proctologists... this whole demise of america thing is a pain in the butt

Yahoo! Finance User
Yahoo! Finance User - Wednesday September 02, 2009 03:24PM EDT

If they can find a way to tax masturbation, this board will lose all its contributors..

Trevin
Trevin - Wednesday September 02, 2009 03:26PM EDT

Popoy - Wednesday September 02, 2009 02:13PM EDT Buy Ford American made car//////////////////////////////////////Absolutely! That is why GM and Chrysler are sucking hind tit. The consumer is about to punish GM and Chrysler for taking the easy way out and treating their bondholders like crap. Both companies inventories were at all time highs because of no demand for the product and now they say they "ran out of cars that qualified". Bull! GM and Chrysler are history. I will never buy another one of their products, not even a used one.

san
san - Wednesday September 02, 2009 03:32PM EDT

yogi9448 - If you want to see something really cool, check out TopGears Ford Fiesta road test web video; being chased in a mall by baddies, field test with the royal marines - priceless family fun. ///// found it for you http://www.youtube.com/watch?v=krrWeyJFsoY

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