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Old 07-27-2009, 02:40 PM   #1
Txflyer
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Default Doing the Math on CARS

Unless my math is bad, I don't see this program lasting very long.

$1 Billion divided by $4500 (worst case) comes to approximately 222,222 car deals.

Anyone know approximately how many new car franchises there are in the USA? I was trying to figure out an average for each dealership.
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Old 07-27-2009, 03:03 PM   #2
WillSD
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Don't forget that NHTSA gets $50 million off the top to administer the program, leaving $950 million for CARS voucher funding. NHTSA also announced that they are using 20% of the admin allowance ($10 million) to market the CARS program! Why in the world they think they have to advertise is beyond me; every media source out there has been pumping this thing for weeks (for free).
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Old 07-27-2009, 03:33 PM   #3
SHACOS
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I think this program may lead to weaker sales numbers when winter comes around. Who's going to be left to buy a new car in this economy? It's definately a short term fix.
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Old 07-27-2009, 03:56 PM   #4
Granch
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I did the math too, forgetting the average per dealership and just figuring the sar.

a sar of 10,000,000 give or take, at an average of $4000 or so, if a quarter of the deals apply, the program has a month or so at most, wont make November....

did i do the math right..? roughed it the other day when talkin to my GM...
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Old 07-27-2009, 03:56 PM   #5
CL Pgh
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We’ve had good response on this program… right at 20 for last three days plus some that didn’t get the CARS program. I don’t see this program/funds lasting through the middle/end of Aug..

Shacos – These aren’t your normal New Car buyers by any means! If not for the Gov. cash… these people would be content to drive these rats/clunkers until they died! I’m guessing we’re not robbing future sales… these are generally “low-end” used car buyers.
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Old 07-27-2009, 04:13 PM   #6
XDCX
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Quote:
Originally Posted by Txflyer View Post
Unless my math is bad, I don't see this program lasting very long.

$1 Billion divided by $4500 (worst case) comes to approximately 222,222 car deals.

Anyone know approximately how many new car franchises there are in the USA? I was trying to figure out an average for each dealership.
I just read that there are already 17,000 dealers who have signed up for the CARS program. Using your 222,222 figure, that's 13 deals per store before the well runs dry.

But let's not forget, this is the tax payers' money and Washington D.C.'s always looking for more votes - I wouldn't be surprised to see the funding extended past the original $1 Billion.
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Old 07-27-2009, 06:01 PM   #7
Txflyer
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Has anybody actually succeeded in inputting a deal into the govt. system? A friend at a large metropolitain dealer said the system crashed today and they took it down.
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Old 07-30-2009, 10:49 PM   #8
XDCX
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Quote:
Originally Posted by Txflyer View Post
Unless my math is bad, I don't see this program lasting very long.
Txflyer - Great thread.....

Maybe you should give up your career as a Dealer and go to Washington D.C. - it looks like they could use your help.
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Old 07-31-2009, 10:51 AM   #9
Txflyer
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Txflyer - Great thread.....

Maybe you should give up your career as a Dealer and go to Washington D.C.
I'd like to think I have something that disqualifies me for a job in Washington; common sense.
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Old 07-31-2009, 11:57 AM   #10
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I'd like to think I have something that disqualifies me for a job in Washington; common sense.
I agree. In fact, when I read all the posts in this thread it's clear that the members here knew that CARS was going to run out of money. Why was it such a surprise to Washington D.C.?
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