Car Dealers Bank On Clunkers

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Published at: online.wsj.com

Car Dealers Bank On Clunkers

June 24, 2009

Analysis by: GLG Expert Contributor

In order for Car Allowance Rebate System to be successful, consumer's must be convinced this is not just another government take over scheme.   If consumers qualify or credit, consumer confidence in Economic outlook will need to improve. Government has enabled more scams to be created as a result of the Rebate System.

Can We Bank on a Spark?

June 24, 2009

Analysis by: GLG Expert Contributor

The program may be a spark for new car sales.  250,000 seems to be a small one with some important open questions.  1. Will workers with lower wages be able to get credit or to make the payments?  2. Do car makers have the inventory of vehicles with improved fuel mileage on hand to meet the improvement criteria?  3. What will happen after the incentive ends?

"Cash 4 Clunkers" = "Form over Substance"

June 24, 2009

Analysis by: GLG Expert Contributor

The” Cash 4 Clunkers" legislation will not be the industry saving catalyst for automakers or dealer’s congress anticipates. Rather, it’s just another example of senseless 'feel good' spending by a government who believe that every problem can be solved by a government program. I talk with auto dealers across the country everyday and so far, while none are going to complain about anything intended to spur new car sales,  they also aren't running to fill up their new car order banks either. Dealership new car inventories are still way out of whack with the realities of the market in much of the U.S. The most popular observation is that the program will not reach the right number of the right people with the right trades for it to be as successful as hoped…I agree! The people driving the world’s "Hoopty's" a.k.a. "clunkers" with an ACV of $3,500 (and up to $4,500) do so not because they don’t want to buy or drive a new car ….they do it because they have credit challenges!

Jack SayerManaging PartnerSayer Partners LLC

Will "Cash For Clunkers" Meet Its Goals? BTW- What Are Its Goals?

June 23, 2009

It seemed like a great idea. It had something for everyone. The plan would launch a wave of customers at dealerships while at the same time keep the environmentalists happy by removing gas-guzzling cars from the road and promoting smaller fuel-efficient models. As a wise person once said " if you try to please everyone, you end up pleasing no one."