Do you want to see another round of the CARS Program?

[XDCX]

Do you want to see another round of the CARS Program?

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Reports from Edmunds.com are predicting that September will be the poorest month for new vehicle sales volume in almost 28 years. :(

While low inventories are clearly a major factor, the early elimination of the CARS Program has also played a role.

Do you want to see another round of the CARS Program, or is once enough?

[XDCX]

I've got to give NHTSA some credit, for as screwed up as the CARS process was they've done a good job getting the huge backlog of claims paid. :thumbsup_old:

I read in yesterday's Automotive News that they're even opening the system up for dealers who were not able to enter claims before the deadline.

NHTSA's come a long ways from the early days of CARS when all the problems were the dealers' fault....

[okcarl]

The CARS program is another example of a short term gain with long term consequences. We keep doing this over and over again. It is like a bad cocaine habit that no one can shake. We as dealers need to figure out how to survive on 9 million units or what ever the true number of sales per year is. The short term gain is great but the long term of pulling customers forward in the buying cycle is not good. After the huge gains the manufactures realized after Sept 11 they kept piling on the incentives to keep it going. GM, Chrysler and Ford all became whores trying to figure out who could come with the biggest rebate or most outlandish program to keep sales momentum. We should have bit the bullet back then and let things naturally progress.

[dodgequality]

Amen.We have to learn to live with what we have and not make an economy made of match sticks.

[XDCX]

Great comments. :)

I think most people in our industry would agree that programs which artificially spike demand do more harm than good over the long term.

That said, I don't think all the OEMs will be able survive if the new car market in the U.S. stays at 10 Million for a couple of years.

My bet is there will be significant pressure to do another round of CARS if the economy has not improved by spring of next year.

[dafuzz1956]

The CARS program is another example of a short term gain with long term consequences. We keep doing this over and over again. It is like a bad cocaine habit that no one can shake. We as dealers need to figure out how to survive on 9 million units or what ever the true number of sales per year is. The short term gain is great but the long term of pulling customers forward in the buying cycle is not good. After the huge gains the manufactures realized after Sept 11 they kept piling on the incentives to keep it going. GM, Chrysler and Ford all became whores trying to figure out who could come with the biggest rebate or most outlandish program to keep sales momentum. We should have bit the bullet back then and let things naturally progress.

GREAT COMMENT, I remember one of my first post made simular statements about how we have to stop stealing from the future. Since 9/11 the auto industry has yet to learn anything from their ----ups. The whole problem is greed for the moment. The OEM's only believe in instant gradification and not a long time relationship. Is there an answer or solution? I am not sure, I almost think they have dug themselves in to deep where they have no vision at all.