Post-clunker mortem, CNNMoney says 700,000 clunker-traders “probably got a good deal.” The rest, not so much. “If you bought a car without a clunker in the last month, you’ve overpaid.” Ya think? “During the weeks the Clunkers program was in effect, buyers of the Toyota Corolla paid 29% closer to the full sticker price than before the program started, according to data from Edmunds.com. Prices were also higher on other popular models. Ford Escape prices were 13% closer to full sticker, and Ford Focus prices were 12% closer . . . on a dollar-for-dollar basis, car buyers were getting less car for their money after negotiating the deal.” And now?
Post-C4C, new car inventories are as spent as a [joke deleted]. In the short term, prices will remain firm. After that, well, we know the domestics’ have cranked-up their factories, readying themselves to meet demand that’s already been satisfied. Although automakers financial statements will be blessed (they log cars leaving the factory as “sold”), how do you spell languish? As The King would say, that’s when the heartache begins.
Look for prices to plummet in November and December after dealer showrooms have filled up ahead of what is traditionally the slack season for car sales.
Binge and purge doesn’t work for dieters. It’s not going to work for the car industry either.
[Thanks to gslippy for the link.]