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Local Dealers Deal With Life After Cash For Clunkers
POSTED: 4:15 pm PDT September 23,
2009
UPDATED: 7:21 pm PDT September 23,
2009
SAN DIEGO -- The Cash for Clunkers program meant big business for many auto dealers around the U.S. in late July and through August, as 700,000 cars were sold nationally during the program.Sales were up about 25 percent during the program at local dealer Greiner Buick Pontiac GMC."The first 10 or 11 days after Cash for Clunkers we experienced what we termed a Cash for Clunkers hangover. We saw the market kind of slow up a little bit, but the last 10 or 11 days we've seen it spring back to life," said Ryan Butterfield, president of Greiner Buick Pontiac GMC.
For many local car dealers, 2009 has been a tough year. Down the street from Greiner, one dealership had to close."I can do nothing about that dealership being closed. I just focus on what I can do here," said Butterfield.In Mission Valley, Cash for Clunkers meant a 30 percent increase in sales for Witt Lincoln Mercury."It created a lot of traffic, a lot of buzz," said Ed Witt.Since then, many dealers said there has been a lull. However, things have picked up a bit."We're kind of back to the 2009 year. People are buying cars every day, but it's certainly not at the pace it was during the 'Clunkers,'" said Witt.Some analysts predicted September would be the worst month for car sales in 28 years, but Witt said no way.For many dealers it is not what it was in 2007, but it isn't the worst or even close to the worst in 28 years.Some dealers across the country have complained the government has not yet reimbursed them for the Cash for Clunkers program. Dealers 10News talked to said they've received their government money.The Transportation Department said 70 percent of dealers have been compensated, and all dealers should be paid by the end of September.As for sales, dealers said the car business does go in cycles."We think we're on our way up rather than on the way down. We've hit the bottom and we're crawling out of it," said Butterfield.To overcome the Cash for Clunkers hangover, many dealers are offering zero-percent interest for up to five years.Additionally, dealers are hoping the introduction of new models will help boost sales.
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