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07-27-2009, 02:40 PM | #1 |
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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. |
07-27-2009, 03:03 PM | #2 |
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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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07-27-2009, 03:33 PM | #3 |
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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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07-27-2009, 03:56 PM | #4 |
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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... |
07-27-2009, 03:56 PM | #5 |
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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. |
07-27-2009, 04:13 PM | #6 | |
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Quote:
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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07-27-2009, 06:01 PM | #7 |
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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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07-30-2009, 10:49 PM | #8 |
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07-31-2009, 10:51 AM | #9 |
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07-31-2009, 11:57 AM | #10 |
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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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