The results are out on the cash for clunkers program. It was the first month that new car sales were up year over year (August 2008 to August 2009) which is good news for the car market. But the program wasn’t quite the success it sounds like.
First, while Ford, Toyota, Honda, Nissan, VW and Hyundai saw big increases year over year, GM and Chrylser were actually both down from August 2008. Imagine how bad they would have been without the program. It makes you wonder whether either of these ex-bankrupt, current US asset companies would have sold any cars in August without the program.
And many analysts predict that people were pulled into the market early and sales will drop a lot in the last few months of the year. So we got a bunch of people to take $4500 of our tax money to trade in their old sleds for 30 days worth of “better than last year” selling from mostly import brands.
Good job Ford by the way.
This is all another good reason to buy a used car.
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