How's the Cash for Clunker program working for your Dealership?

XDCX · 07-27-2009, 10:10 AM

How's the Cash for Clunker program working for your Dealership?

There's been widespread coverage in the media and all indications are that dealership traffic levels are higher than they've been in months.

Please take our poll and let us know how the Cash for Clunkers program has been working for your dealership.

Additionally, what percentage of the customers who come to the store have a vehicle that doesn't qualify because the mileage is too high? Are these people still buying cars or do they leave the dealership because they do not qualify for the CARS program?

XDCX · 07-27-2009, 08:49 PM

Do most of the customers already know the details of the CARS program and know that their vehicle qualifies, or are they just responding to the media buzz and going to the dealership to learn more?

CarguyCO · 07-28-2009, 07:31 AM

We have done 9 CARS deals in 3 days....

XDCX · 07-28-2009, 07:36 AM

Quote:

Originally Posted by CarguyCO

We have done 9 CARS deals in 3 days....

Cool. In your opinion, would these customers have been in the market for a new car if the CARS program wasn't available? Or are these cars being sold to customers you normally wouldn't see?

SHACOS · 07-28-2009, 09:19 AM

Good question. I really hope we are not seeing another 2005 with Employee Pricing where volume was front loaded with nothing left for the rest of the year.

XDCX · 07-28-2009, 10:06 AM

According to Bloomberg, Chrysler's reporting the best level of showroom traffic they've had for the past two years and about 1 in 3 customers have a vehicle which qualifies for the CARS program.

Here's a link to the Bloomberg report - click here

Txflyer · 07-28-2009, 10:08 AM

2 deals today - both clunkers.

CarguyCO · 07-28-2009, 10:09 AM

We have also sold 2 cars to folks that didn't qualify but came in to see if they did qualify..
Several of these deals would definitely not have been done if not for the CARS program...

XDCX · 07-28-2009, 10:33 AM

Quote:

Originally Posted by CarguyCO

We have also sold 2 cars to folks that didn't qualify but came in to see if they did qualify..
Several of these deals would definitely not have been done if not for the CARS program...

That's great news on both counts.

To the extent the program is somewhat confusing, I'm not surprised that some customers would just show up at the dealership and see what their options are.

It's also great to hear that some of the business is from customers who otherwise wouldn't be in the market.

XDCX · 07-28-2009, 10:36 AM

Quote:

Originally Posted by SHACOS

Good question. I really hope we are not seeing another 2005 with Employee Pricing where volume was front loaded with nothing left for the rest of the year.

There was a good article in the Wall Street Journal that addressed the same fear. If all this program does is front-load sales then it's going to be a problem once the program ends.

Although it's too early to tell, we have had several reports that CARS is attracting customers who otherwise wouldn't be in the market for a new car.

Here's a link to the Wall Street Journal article: click here

gopwillie · 07-28-2009, 10:43 AM

Tons of traffic here. Writing our 11th deal now. And we're not exactly a huge store. I don't think any of them would be buying NOW without it, but it's hard to say when they would have bought something going forward.

Granch · 07-28-2009, 10:44 AM

Sold 6 for the clunkers, but now we're outta cars other than a 300..

woulda had 2 more but cant locate a compass or patriot on a bet...

I can't believe these two cars are hotter than a wrangler right now...never thought i'd see this day....

XDCX · 07-28-2009, 10:59 AM

Quote:

Originally Posted by Granch

woulda had 2 more but cant locate a compass or patriot on a bet...

I can't believe these two cars are hotter than a wrangler right now...never thought i'd see this day....

If the CARS program has managed to make the Compass a "hot" vehicle I guess anything's possible - that's awesome.

MUAlum92 · 07-28-2009, 11:21 AM

Have sold two Avengers and two Patriots in the last two days. Couldn't GIVE either of those vehicles away that last six months.

Traffic has really improved since Friday and not just clunker people. Sold three new yesterday and two were non-clunker. Three new on a Monday here is huge.

The clunker program has been frustrating with all the fine print, but worth it.

As for stealing future business, I don't see that as the case. If we were a GM or import store with more vehicles that qualify, perhaps, but all we're doing is getting rid of Avengers, Calibers and Patriots here. Stuff we couldn't move otherwise.

So, at least for us, I'm not too worried about this leaving us without customers the rest of the year. There should still be people in the market wanting our core vehicles - Rams, Vans and Wranglers - when fall and winter roll around.

XDCX · 07-28-2009, 01:10 PM

Quote:

Originally Posted by MUAlum92

As for stealing future business, I don't see that as the case. If we were a GM or import store with more vehicles that qualify, perhaps, but all we're doing is getting rid of Avengers, Calibers and Patriots here. Stuff we couldn't move otherwise.

I laughed when I first read that - it's sad, but true.

I was really surprised when I learned yesterday that Dodge doesn't have a Category 1 Truck - that has to be a huge limiting factor. There are tons of old Ram 150s and Dakotas that qualify for the CARS program, but the Dodge dealers don't have a truck they can sell them.

Ford, Chevrolet, GMC, Toyota, Nissan and KIA have trucks they can sell to a Ram 150 or Dakota owner, but Dodge does not.

View Poll Results: How's the Cash for Clunker program working for your Dealership?
Fantastic - Traffic and sales are up significantly	12	44.44%
Very Good - Lot's of traffic and a modest increase in sales	10	37.04%
Just Fair - Increased traffic, but too many customers don't qualify	3	11.11%
Poor - Modest increase in traffic, but no increase in sales	2	7.41%
Voters: 27. You may not vote on this poll

07-27-2009, 10:10 AM	#1
XDCX Administrator Join Date: Nov 2007 Posts: 14,869	How's the Cash for Clunker program working for your Dealership? *How's the Cash for Clunker program working for your Dealership?* There's been widespread coverage in the media and all indications are that dealership traffic levels are higher than they've been in months. Please take our poll and let us know how the Cash for Clunkers program has been working for your dealership. Additionally, what percentage of the customers who come to the store have a vehicle that doesn't qualify because the mileage is too high? Are these people still buying cars or do they leave the dealership because they do not qualify for the CARS program?

07-27-2009, 08:49 PM	#2
XDCX Administrator Join Date: Nov 2007 Posts: 14,869	Question about the customers.... Do most of the customers already know the details of the CARS program and know that their vehicle qualifies, or are they just responding to the media buzz and going to the dealership to learn more?

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07-28-2009, 07:31 AM	#3
CarguyCO Senior Member Join Date: Jan 2009 Posts: 260	We have done 9 CARS deals in 3 days....

07-28-2009, 09:19 AM	#5
SHACOS Super Moderator Join Date: Jan 2008 Posts: 838	Good question. I really hope we are not seeing another 2005 with Employee Pricing where volume was front loaded with nothing left for the rest of the year.

07-28-2009, 10:06 AM	#6
XDCX Administrator Join Date: Nov 2007 Posts: 14,869	According to Bloomberg, Chrysler's reporting the best level of showroom traffic they've had for the past two years and about 1 in 3 customers have a vehicle which qualifies for the CARS program. Here's a link to the Bloomberg report - click here

07-28-2009, 10:08 AM	#7
Txflyer Senior Member Join Date: Jan 2009 Posts: 953	2 deals today - both clunkers.

07-28-2009, 10:09 AM	#8
CarguyCO Senior Member Join Date: Jan 2009 Posts: 260	We have also sold 2 cars to folks that didn't qualify but came in to see if they did qualify.. Several of these deals would definitely not have been done if not for the CARS program...

07-28-2009, 10:43 AM	#11
gopwillie New Member Join Date: Jan 2009 Posts: 15	Tons of traffic here. Writing our 11th deal now. And we're not exactly a huge store. I don't think any of them would be buying NOW without it, but it's hard to say when they would have bought something going forward.

07-28-2009, 10:44 AM	#12
Granch Senior Member Join Date: Jan 2009 Posts: 182	Sold 6 for the clunkers, but now we're outta cars other than a 300.. woulda had 2 more but cant locate a compass or patriot on a bet... I can't believe these two cars are hotter than a wrangler right now...never thought i'd see this day....

07-28-2009, 11:21 AM	#14
MUAlum92 Member Join Date: Jul 2008 Posts: 97	Have sold two Avengers and two Patriots in the last two days. Couldn't GIVE either of those vehicles away that last six months. Traffic has really improved since Friday and not just clunker people. Sold three new yesterday and two were non-clunker. Three new on a Monday here is huge. The clunker program has been frustrating with all the fine print, but worth it. As for stealing future business, I don't see that as the case. If we were a GM or import store with more vehicles that qualify, perhaps, but all we're doing is getting rid of Avengers, Calibers and Patriots here. Stuff we couldn't move otherwise. So, at least for us, I'm not too worried about this leaving us without customers the rest of the year. There should still be people in the market wanting our core vehicles - Rams, Vans and Wranglers - when fall and winter roll around.