This week Hyundai has been in the spotlight with news that “Cash for Clunkers” sales represented 7% of their overall sales volume. Consumers have been taking advantage of Hyundai’s lead in offering CARS rebates before the official start date  as well as the Hyundai factory incentives that reduces the MSRP of some models over 43%.

American Muscle Pumping Up

We predict that Ford, Chevrolet and Chrysler are getting their marketing plans ready for a July 23rd blitz that will boost August Cash for Clunkers sales past any benchmark set by Hyundai.  From data collected from consumer responses on CashforClunkersFacts.com, Ford may be in the best position to be in the lead when the August Cash for Clunkers sales numbers are finalized.

According to data published in our recent Cash for Clunkers survey, Ford has the highest number of consumers owning a “clunker” that will be participating in the program.  Ford also is the leading American brand that consumers will most likely purchase. 

If Ford can leverage their existing customer database with direct mail, email and TV advertising, they stand a good chance of retaining their existing customers and attracting buyers who want to purchase an American icon. 

Chevrolet also has a similar opportunity since they are the second most popular brand that consumers plan to trade in for a new fuel efficient car.

August Cash for Clunkers Sales

American car companies will have their work cut out for them in August. Toyota and Honda are the most favored brands that consumers will purchase with their Cash for Clunkers (CARS) credit.   The determining factor for import car sales will be factory incentive monies.  Nissan and Hyundai appear to be more aggressive with factory incentives and rebates which may help take some market share away from Toyota and Honda.

Consumers we have surveyed are looking at the combined discounts they can realize with factory incentives and CARS credits of either $3,500 or $4,500.  Manufacturers that do the best job of showing consumers the “CARS Math” will most likely draw the most floor traffic.

Cash for Clunkers Funding in Question

We predict that the $1 billion in funding set aside to operate the Car Allowance Rebate System (CARS) will run out by Labor Day Weekend.  That means that August will be the flash in the pan for car dealer retail sales. 

Without an act of Congress, additional funding can not be obtained.  With this is mind, consumers are asking their legislators to change the current language of the Cash for Clunkers bill to have more “real-life” estimates for EPA miles per gallon figures.

A Cash for Clunkers Petition is gaining momentum to send a strong message to Congress that if additional funding is to be considered, a NET-10 provision should be added.  For additional information on the petition visit: http://www.nocashforclunkers.com .

• National Clunker Memorial Gallery
• Links
• Archives