hmm…collateral stimulus…interesting

This seems to be great news. Anytime used car prices go up new car sales increases follow.

This CARS program seems to have the best stimulus results so far.

Dealers are taking in more money, customers are saving money, car stock is way down, plants are increasing 3rd quarter build, suppliers are increasing component build.

Next we should hear that laid off workers are being called back and what should also follow is more sales of food and non perishable goods.

Congrats for the C4C.
I hope they will expand it a bit later in the year and add passenger cars increasing the limit to 21 mpg at least. That would give another huge boost to it and also take care of some the 2010 production that is starting to showing up at dealers now.

Guys

This is all a psychological result of the real stimulus: PERMISSION TO SPEND MONEY. For the last year and a half the media has told everyone to STOP SPENDING MONEY. Now it’s OK TO SPEND MONEY, and people are doing so.

People want cars. People need cars. People have just been waiting for it to become “OK to buy cars”.

I wish people wouldn’t be so easily swayed by the media. It’s a real shame.

mmmmmmm, 2 out of 3 people are not qualify for the program, the reason is that this CARS program is doesn’t give people that much choice. I mean why only New vehicle? why not at less 2 or 3 years vehicle. not every one can afford a new vehicle even with CARS program, we still going to see vehicle get repo no matter what. The govt should put the money in to technology to make better fuel vehicle and fired UAW so the vehicle will be alot more cheaper. Because of UAW ask for higher pay, that’s why all these vehicle on high price with crap reliability. Avg per vehicle now $33,000 or more per person to spend on, and resale probably half of that. Use to be avg $25,000 few years back, we have over pay on all the vehicle we buy, and the quility are the same but we may more. Why? because we have to pay more to UAW so they can make more money, and make other to suffer.

@FSVT_ROCK

Actually, there’s a LOT of cars that qualify to be purchased. The shocker for most people is that they’ve got a 15 year old car that gets 19MPG combined and it’s not a “clunker” according to the government. The reality is that dealerships and manufacturers are making deals like mad because as I said previously, the spigot of customers has been opened and these guys have lots of pent up inventory to dump. Combine that with traditional end-of-year sales and we have a tsunami of cars being sold. The best part is that factories are being cranked up early to replenish dealer inventories.

it’s not really the media at play here, imo, because we’ve all heard for years that on average americans have over-spent and under-saved…this is nothing new, it’s been reported for years…and yet, everybody kept spending – not spending hard-earned dollars, but spending via credit and loans…we all knew it was bad, and yet we all kept doing it – until the situation became so dire that it couldn’t be avoided anymore and people started getting kicked out of their homes…

more recently, facts like the improving jobs numbers, the stock market having the best july in 20 years, etc., have given people a sense it’s ok to spend a bit again…this isn’t simply because the media is telling people to buy or not to buy, there is no such media driven on/off switch to buying…

Unfortunately this is also devastating to the used car market. Good luck finding anything used in the $4000 to $7000 range within the next few years.

You can’t find any small cars or wagons because people aren’t selling them… and all the larger cars, trucks, and SUVs are being crushed.

Yeah, great idea.

IT’A CALLED A SALES SWITCH…….

@ RaineMan you will Find cars around $4,000 – $7,000 range…

On average people only keep their cars for 3 years, so you can beat that every car that is selling under C4C program will find it’s way back to a used car lot.

And I can go on but we are finally seeing better days, and don’t worry after C4C is long gone you’ll see the “END OF YEAR SALES EVENT”, “WITH GIANT REBATES” just like you see every year, and the dealers will once again have there lots full of fresh new cars… Trust me….

@yarddog82abn, I would think people buying under C4C will hold on to their cars longer than average as they come from a history of owning cars for a long time. Though, come to think of it, my last two trade-ins were were worth less $45000 before the 5 year mark.

Errr…meant $4500…obviously.