After Cash For Clunkers, Auto Dealerships Are "Ghost Towns"

Discussion in 'Economics' started by ByLoSellHi, Sep 13, 2009.

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    Post Cash-for-Clunkers Sales Suck

    By Robert Farago
    September 13, 2009

    No surprise there. Any automotive analyst worth their salt could have told you—did tell you—that Uncle Sam’s $3 billion Cash for Clunkers program was going to suck the oxygen right out of the showroom. Really, this is one for Johnny Carson. HOW BAD ARE THEY? They’re so bad that salesmen who boast, “You ain’t seen nothing yet!,” know they’re being ironic. Pause. The Associated Press doesn’t “do” irony. (Nor, apparently, sales stats.) Still, their article on September’s new car sales drought is not without merit, suffused as it is with Glengarry Glen Ross-type quotes from starving dealers, caught in the no-man’s land between no inventory and no customers. Here’s the stripper version . . .
  2. Well, sure. Everyone knew what was going to happen. I don't feel bad for the dealers. They have the ability to ration the short term profit as a long term supplement to their annual income. Sadly, many of them have probably already blown their record making monthly commissions.

    Never thought I would say this, but the people I actually feel sorry for are used auto dealers. Generally not viewed as a very respectable job. In this case they got screwed.

    During tough economic times, the used car dealers should gain market share, as people look to save money. Instead, their worst nightmare comes true. G-ment helps everyone buy new cars and then forces the old trade-ins to be scrapped.

    Every bigger nightmare is when they see what is going to happen once dealer inventories are re-stocked. Can you say C.A.R.S. v2.0?!?