Edmunds.com: Don’t Let Cash for Clunkers Short Youby Tim Manni
According to Edmunds.com, while Cash for Clunkers provides savings for consumers, the program is also causing some dealers to raise their prices:
“Since the program launched, we’ve seen that shoppers are getting less of a discount off sticker price for new cars,” notes Senior Analyst Michelle Krebs in her report on Edmunds’ AutoObserver.com. “In some cases, they are choosing less expensive trim levels and option packages than had been typical in recent months, but paying more for them.”
Along with the other criticisms directed at the program, Edmunds.com CEO thinks that the program couldn’t have launched at a worse time of the year:
“In truth, this program launched at the worst possible time of the year,” opined Edmunds.com CEO Jeremy Anwyl. “The annual summer sell-down typically creates a rush of activity for the industry, and this year that rush came right after automakers cut production in response to the floundering economy. It’s a simple case of supply and demand, bolstered by a reduced level of negotiation on the part of excited clunker traders. Add to this the automakers’ unseasonable reduction in incentives and the message is clear: if you buy a car this summer, you should expect to pay higher prices.”
Edmunds.com is a great website for consumers who are buying or selling a vehicle. The site provides vehicle reviews and evaluations, model comparisons, automotive news, and a whole lot more.