Study says 'Cash for clunkers' impact was underestimated

[babylonsister]

Study says 'Cash for clunkers' impact was underestimated

By Randolph Heaster | Kansas City Star


Search online for "Cash for Clunkers," and here's one thing you'll find: stories about its negligible overall impact on the economy.

Wrong, says Maritz Automotive Research Group. The Toledo, Ohio, independent automotive research company recently surveyed participants in last summer’s federal program designed to stimulate new-car sales and get gas-guzzlers off the road. On Tuesday, the company shared its results.

One key finding: 90 percent of those participating in Cash for Clunkers said they would not otherwise have bought a new car.

According to federal government data, 677,000 purchases were made through Cash for Clunkers from late July through August. Maritz’s research showed that 542,000 were incremental new car or truck sales, meaning those purchases would not have occurred without the incentives. Previous estimates by industry analysts put the incremental sales figure between 125,000 and 346,000.

The government’s Car Allowance Rebate System, or CARS, offered vouchers of $3,500 or $4,500 to owners of older, gas-guzzling vehicles who traded them in for new, fuel-efficient models. The program, which was expected to last several months, was so popular that it ran out of its $3 billion in funding in two months.

“Our findings not only provide strong evidence that many more vehicles were sold as a direct result of the incentive program than were previously estimated, but they also debunk the myth that Cash for Clunkers mortgaged future car and truck sales,” said Dave Fish, a Maritz vice president. “In fact, the program resulted in sales of vehicles to people who don’t normally buy them.”

more...

http://www.mcclatchydc.com/2010/03/10/90110/study-says-cash-for-clunkers-impact.html

[Captain Hilts]

1. It was a great policy. nt

[Mike 03]

2. It did help very much, according to economists interviewed on Bloomberg, and it was successful

enough that it is being replicated in the European Union the last I heard.

Thank you for this post, and Kick and Rec.

[girl gone mad]

5. Uh.. they did a Cash For Clunkers program before we did.

Our program was largely modeled after theirs.

[Mike 03]

7. Honestly? If that is true, thank you for the info. I did not realize that.

Thanks.

[girl gone mad]

9. Here's some info on it..

http://wot.motortrend.com/6493808/cash-for-clunkers/european-cash-for-clunkers-programs-boost-february-french-small-car-sales/index.html

I hadn't heard if they were going to do a repeat program this year.

[Sabriel]

3. Just think of the impact on safety alone

Older cars without the newer airbags and crumple structures replaced by newer safety technology.

[CreekDog]

14. and reduced air pollution

and oil consumption.

your point is well taken despite the folks laughing at you. :hi:

[flyarm]

4. where's the cash for Toyota's runaway PRIUS's Camry's , Lexus's?

how many people have to die ?? or be hit with one of these runaway cars?

Get those damn cars off our freeways and neighborhood roads..before my family..or yours gets killed by one!

[PBS Poll-435]

6. lol

:rofl:


I have two words for you...

Statistically Insignificant

[Hansel]

12. Unless it's you. nt

[customerserviceguy]

13. I'd venture to guess

that quite a bit of the cash in Cash for Clunkers went to Toyota. The program was long over with before the news really hit about Toyota's quality problems.

[flyarm]

15. I bet you are right..I hadn't thought of that ..thanks for answering!! eom

[girl gone mad]

8. It did, however, pull demand forward rather significantly..

as was predicted.

[Purveyor]

10. GM CEO Says On Track For Pre-June Loan Repayment ($8 billion in debt to the US, Canada)

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4301565

[Cha]

11. Good to hear! It seemed

like a really good deal.

[Clio the Leo]

16. I read an article last week saying auto dealers scheduled to close...

... were going to be kept open after all.

I believe that news calls for a terrorist fist jab! ----> :fistbump:

Here's the article...

http://www.newsnet5.com/dpp/news/gm-will-keep-over-600-dealerships-open

[babylonsister]

17. Terrorist fist jab?!

:rofl: :fistbump:

[AllentownJake]

18. That had more to do with intervention from congress to GM

than cash for clunkers.

Ford, Huyandai, and Toyota were the big winners from that program. GM was still on shakier ground than.

Restructuring saved GM, not sales, though in the lower demand environment, Toyota's trouble is helping them.

[Clio the Leo]

20. Come on Jake......

:fistbump: with me .... you KNOW you want to!

[scheming daemons]

22. Jake is predisposed to dismiss good news and exaggerate bad news

..It's just his nature.


He's been burned so many times that he's become very cynical and cannot, will not, accept news that indicates things are getting better.

[Clio the Leo]

26. One of these days we're gonna have to engage him in a good old fashioned...

... tickle party! :grouphug:

I bet we could make him SMILE at least once ..... maybe.

[Rosa Luxemburg]

19. Clunkers for green vehicles

[Clio the Leo]

21. I dont want a pony....

.... I want a LEAF!!!



A PINK ONE!!! Come on Obama! Hook me up!

[Vattel]

23. Oh so this study must be the valid one

because it says what we want to hear.

[dkf]

24. I have no doubt this is true.

People with those type of clunkers are not natural new car buyers.

I bet a lot of them bought toyotas though. That kind of sucks.

[JoePhilly]

25. The program also ...

got people who were on the fence to start looking at the others deals coming from auto dealers out to look around.

We bought a new car in Nov. without using the program ... but the program, and other incentives being put forward got us to buy.