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Study: 'Cash for clunkers' had stronger influence than estim

The Detroit News -- Last year's "cash for clunkers" incentives program stoked demand for cars and trucks without pulling sales forward, according to a study by the Maritz Automotive Research Group.

"Our findings not only provide strong evidence that many more vehicles were sold as a direct result of the incentive program than were previously estimated, but they also largely debunk the myth that 'cash for clunkers' mortgaged future car and truck sales," said Dave Fish, vice president, Maritz Automotive Research Group.

"In fact, the program resulted in sales of vehicles to people who don't normally buy them."

Toledo, Ohio-based Maritz surveyed nearly 36,000 consumers who bought a new car or truck between July and August 2009, when the Car Allowance Rebate System was in effect.

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Submitted Mar 09, 2010 By: dwgt.net

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LetemEatCake Champion Author Oklahoma City Posts:2,800 Points:426,370 Joined:Mar 2008	Message Posted: Mar 10, 2010 11:52:17 PM Ignore LetemEatCake Report Abuse honda0105 from Tallahassee... Wait away, you are not going to see anything more than what is a normal percentage of car defaults. Too hard to get a loan today, you have to have excellent credit! Surely you are not hoping for your fellow citizen, even neighbors, who took part in the C4C program lose their car are you? Sounds like you maybe wishing a bad outcome for good people. If so, not very Christian!
honda0105 Champion Author Tallahassee Posts:10,169 Points:593,750 Joined:Nov 2008	Message Posted: Mar 10, 2010 11:17:50 PM Ignore honda0105 Report Abuse I'm still waiting on that credit default to hit...
honda0105 Champion Author Tallahassee Posts:10,169 Points:593,750 Joined:Nov 2008	Message Posted: Mar 10, 2010 11:17:02 PM Ignore honda0105 Report Abuse can we say "doh!"?
genef01 Champion Author Nashville Posts:1,996 Points:665,010 Joined:Jul 2008	Message Posted: Mar 10, 2010 2:25:45 AM Ignore genef01 Report Abuse Do you think they might possibly have a vested interest in showing that that drain on the average taxpayer was successful? RENEGADEGAS hit the nail on the head.
vulcan96 Champion Author Ohio Posts:17,694 Points:2,092,545 Joined:Aug 2004	Message Posted: Mar 10, 2010 2:18:32 AM Ignore vulcan96 Report Abuse The Ann Arbor-based Center for Automotive Research has said 40,200 NEW jobs were created, including about 11,000 in Michigan and Ohio alone. i don't believe that in any way !!!!
GMVAN Champion Author Calgary Posts:1,640 Points:391,480 Joined:Apr 2009	Message Posted: Mar 10, 2010 2:16:53 AM Ignore GMVAN Report Abuse Its got to be an incentive to buy a new vehicle.
cheapertvs Champion Author Richmond Posts:4,994 Points:1,728,620 Joined:Jan 2004	Message Posted: Mar 10, 2010 2:08:51 AM Ignore cheapertvs Report Abuse Hopefully the need for a cash for clunkers program will all be a bad memory from the past.
pbc2001 Champion Author Dallas Posts:2,311 Points:416,430 Joined:Feb 2009	Message Posted: Mar 10, 2010 2:01:25 AM Ignore pbc2001 Report Abuse Who knows what tomorrow will bring.
RENEGADEGAS Champion Author Missouri Posts:7,361 Points:583,905 Joined:Jul 2008	Message Posted: Mar 10, 2010 2:01:03 AM Ignore RENEGADEGAS Report Abuse Interesting information found on the web about Maritz. They are a marketing firm greatly responsible for the cash for clunkers program. They worked in conjunction with the government to develope the program and two of the major companies they represent are GM and Chrysler. They also help Ford in thier marketing efforts as well. I bet they thought it was a success. They must need another bullet on thier resume.
Mowerman08 All-Star Author Milwaukee Posts:907 Points:411,060 Joined:Aug 2008	Message Posted: Mar 10, 2010 2:00:12 AM Ignore Mowerman08 Report Abuse It was still a rip off of the American tax payer and really didn't help Obama Motors.
CobraLeader Champion Author New Jersey Posts:235,822 Points:1,099,125 Joined:Apr 2007	Message Posted: Mar 10, 2010 1:56:56 AM Ignore CobraLeader Report Abuse ... I still don't know WHERE the clunkers WENT. ...
EcoVore Champion Author Los Angeles Posts:1,996 Points:297,135 Joined:Jun 2008	Message Posted: Mar 10, 2010 1:54:19 AM Ignore EcoVore Report Abuse Need to reinstate the cash for clunkers as runaway Toyota's were missed the first time around.
benjy Champion Author Chicago Posts:4,606 Points:856,655 Joined:Nov 2003	Message Posted: Mar 10, 2010 1:49:42 AM Ignore benjy Report Abuse It'll still be harder to buy used parts for ole Nelly-Belle...
EVBuddy Champion Author Nevada Posts:11,521 Points:2,023,560 Joined:Sep 2004	Message Posted: Mar 10, 2010 1:47:41 AM Ignore EVBuddy Report Abuse They just figured it out.
visitor_2 All-Star Author Orlando Posts:672 Points:789,825 Joined:Aug 2006	Message Posted: Mar 10, 2010 1:47:40 AM Ignore visitor_2 Report Abuse Residual effect is many Obama for President bumper stickers are off the road
Jeff4U Champion Author Atlanta Posts:3,093 Points:844,940 Joined:Nov 2004	Message Posted: Mar 10, 2010 1:45:50 AM Ignore Jeff4U Report Abuse whatever
grouch311 Champion Author Illinois Posts:3,874 Points:638,130 Joined:Jun 2007	Message Posted: Mar 10, 2010 1:42:20 AM Ignore grouch311 Report Abuse huh? now we're back to this again?
pulpwood Champion Author Mississippi Posts:3,903 Points:1,158,795 Joined:Sep 2006	Message Posted: Mar 10, 2010 1:40:30 AM Ignore pulpwood Report Abuse That is one crazy post you got there lesechang!
WhiteTreeIndian All-Star Author New Jersey Posts:914 Points:174,820 Joined:Dec 2009	Message Posted: Mar 10, 2010 1:38:39 AM Ignore WhiteTreeIndian Report Abuse Sure isn't anything to blame Uncle O'bie about. How could anyone find fault with the best Pres the USA ever had?
ops3 Champion Author Cincinnati Posts:1,229 Points:737,025 Joined:Dec 2007	Message Posted: Mar 10, 2010 1:33:40 AM Ignore ops3 Report Abuse Fine for those people who wanted to trade in their nice sturdy SUV or pickup or full sized car to a crushable little tin box!
greenfog Champion Author Illinois Posts:1,543 Points:640,750 Joined:Feb 2008	Message Posted: Mar 10, 2010 1:26:27 AM Ignore greenfog Report Abuse CFC was good for some people but bad for a lot of people who would have been able to afford those trade ins as newer or better shape then what they have. now they will have to wait several more years and hope what they are driving holds together till they can afford a replacement at a reasonable cost for them.
TPlayer All-Star Author Fort Wayne Posts:572 Points:138,955 Joined:Jan 2010	Message Posted: Mar 10, 2010 1:20:31 AM Ignore TPlayer Report Abuse Anyone with a remote amount of intelligence could have concluded all this without the study... All the program did was take money from all the taxpayers, gave it dealers, car manufacturers and people with a qualifying car to trade in... net result = waste of tax payer money; clearing out Car manufacturers end of year 2009 inventory... and junking some good used cars resulting in lower used car inventory and higher used car prices for those who can't afford new cars.
jadeusa Champion Author Dallas Posts:4,101 Points:839,035 Joined:Sep 2005	Message Posted: Mar 10, 2010 1:18:22 AM Ignore jadeusa Report Abuse There are numbers and then there are more numbers that can mean something else altogether. As an American consumer that is always looking for value, I will tend not to buy GM or Chrysler since there is a question on quality (IMHO). Ford is at the top of my list, then will check out Honda, Nissan, and yes Toyota.
250FORD Champion Author Minnesota Posts:7,494 Points:1,199,660 Joined:Feb 2007	Message Posted: Mar 10, 2010 1:11:43 AM Ignore 250FORD Report Abuse granitestater I agree with you on this. roadrunnerMO I need proof, you heard this on talk radio or fox news didn't you?
granitestater Champion Author New Hampshire Posts:3,910 Points:601,950 Joined:Oct 2008	Message Posted: Mar 10, 2010 1:10:09 AM Ignore granitestater Report Abuse I just read some of the comments... Boy, there's a bunch of cynical cynics out there. I liked the clunkers rebate program. because it was the Obama program that put real money in the pockets of real Americans who needed it. Dealers, mechanics, salesmen and others who benefit from the automotive industry sphere of influence.
roadrunnerMO Champion Author Kansas Posts:3,250 Points:696,945 Joined:Jul 2008	Message Posted: Mar 10, 2010 1:07:59 AM Ignore roadrunnerMO Report Abuse AND EVERY VEHICLE UNDER THE PROGRAM COST AMERICAN TAXPAYERS OVER $22,000 PER CAR UNDER THE CASH FOR CLUNKERS PROGRAM. Thank you Harry Reid as it is on your cost basis and will push you along and out of your job.
granitestater Champion Author New Hampshire Posts:3,910 Points:601,950 Joined:Oct 2008	Message Posted: Mar 10, 2010 1:06:42 AM Ignore granitestater Report Abuse The idea was to kickstart car sales. It did that. The kicker was that the clock started ticking on those replacement vehicles. They get in accidents the same rate as old cars. And they wear at the same rate as old cars. And people get tired of them at the same rate as old cars. And people wanted to drive all those new cars. More wear and tear. Just less gas burned because they got new cars with better mileage. So while gasoline piled up at the refineries. All sorts of cars got a workout. Well, now it's next year. Washington's Birthday has passed. Spring is on the way. Time to trade in those 'new cars' for something newer. While they still have high trade-in value.
cutter1330 Champion Author Oklahoma Posts:2,946 Points:684,210 Joined:Jul 2005	Message Posted: Mar 10, 2010 1:06:16 AM Ignore cutter1330 Report Abuse Wasn't that strong @ my house.
scrounger Champion Author Vancouver Posts:8,255 Points:2,206,140 Joined:Mar 2003	Message Posted: Mar 10, 2010 1:05:38 AM Ignore scrounger Report Abuse number crunchers can make them do what they want
bobdec Champion Author Florida Posts:4,094 Points:802,075 Joined:May 2008	Message Posted: Mar 10, 2010 1:04:50 AM Ignore bobdec Report Abuse Another story that reports false information from the bought and paid for media to make government look good.
defcon7 Veteran Author St. Louis Posts:408 Points:57,915 Joined:May 2009	Message Posted: Mar 10, 2010 1:04:22 AM Ignore defcon7 Report Abuse Oh what a load of c#@p! The only people it helped were obama's union employees and those who already could afford a new car, but wanted a better deal. This article sounds like it came from the obama camp just like the healthcare scam and employment numbers being skewed to make them look good, despite the reality we are sinking faster than the Titanic My lord peolple our fed. gov. is buying up their own money to fool the numbers. That's the same thing as you using your credit card to make your credit card payment, and you know where that will leave you, bankrupt! Just like what bobama's doing to our country by all these social transforming programs. He's transforming us into pre world war 2 germany right before us, and just like then, no one wanted to believe it was happening even thoe it was going on right before their own eyes. If you don't see it, your living in denial of the facts.
Gary65 Champion Author Toronto Posts:1,400 Points:432,910 Joined:Jan 2009	Message Posted: Mar 10, 2010 1:02:45 AM Ignore Gary65 Report Abuse I never could take advantage of that program, no money, no job and I guess no hope of getting one.
Saturn93 Champion Author Salt Lake City Posts:4,054 Points:977,315 Joined:Oct 2006	Message Posted: Mar 10, 2010 1:00:34 AM Ignore Saturn93 Report Abuse Another government give-away financed by -- you guessed it -- the US taxpayers. Thanks, Pres. Obama.
joel27nc Champion Author Raleigh Posts:5,352 Points:853,070 Joined:Mar 2008	Message Posted: Mar 10, 2010 1:00:15 AM Ignore joel27nc Report Abuse Sure did mortgage our future.
Bubba44612 Champion Author Ohio Posts:2,476 Points:879,325 Joined:Aug 2005	Message Posted: Mar 10, 2010 12:51:18 AM Ignore Bubba44612 Report Abuse That is good to know.
DEG Champion Author Las Vegas Posts:12,644 Points:2,511,525 Joined:Jul 2003	Message Posted: Mar 10, 2010 12:49:14 AM Ignore DEG Report Abuse I don't believe this report. Who financed the report? It is coming from a city that depends on the auto industry and in my mind starts from a biased position.
Z51Corvette Champion Author Austin Posts:4,025 Points:776,390 Joined:Jan 2008	Message Posted: Mar 10, 2010 12:47:05 AM Ignore Z51Corvette Report Abuse It's really easy to manipulte the numbers to reflect what you want. I'd be hesitant to belive this report.
vollee Veteran Author Cincinnati Posts:260 Points:226,115 Joined:Dec 2007	Message Posted: Mar 10, 2010 12:46:44 AM Ignore vollee Report Abuse Just another pure unadorned gov'mint program that was a total waste. Thank you Prez Clunker and all your fellow Stooges. We the voters of America will remember in November. Adios suckers!
10k Champion Author North Carolina Posts:12,610 Points:1,242,700 Joined:May 2006	Message Posted: Mar 10, 2010 12:45:18 AM Ignore 10k Report Abuse what do you expect the vice president of maritz automotive research group to say ??..he loves his job, so he says whatever he is told to say.. i say BS..too many of us unemployeds out there, too many living from paycheck to paycheck, too many not making making ends meet, and too many with which a new car is on the bottom of their list.. BS..
52MPG Champion Author Dayton Posts:2,135 Points:734,585 Joined:Apr 2006	Message Posted: Mar 10, 2010 12:44:04 AM Ignore 52MPG Report Abuse Data can be presented in any way one wants to prove what ever you want.
JoeKR Champion Author New Jersey Posts:4,821 Points:1,085,020 Joined:Feb 2006	Message Posted: Mar 10, 2010 12:40:13 AM Ignore JoeKR Report Abuse Granted the program didn't help the jobless buy cars as mentioned in a prior post -that would be pretty much the kind of things the bankers did that got us into the recession to begin with. But it did get those who could afford a car off the dime to make a purchase and break the economic inertia.
dirt girl Champion Author Twin Cities Posts:28,963 Points:2,082,330 Joined:Oct 2004	Message Posted: Mar 10, 2010 12:38:53 AM Ignore dirt girl Report Abuse 455Pontiac, I agree. All those older and not so old vehicles, some with low mileage (under 200k) that lots of people would have gladly bought if the program included the purchase of used cars. It was hard to fine used parts before, now it's almost impossible.
Eichhornchen Champion Author Detroit Posts:2,559 Points:500,970 Joined:Feb 2009	Message Posted: Mar 10, 2010 12:30:17 AM Ignore Eichhornchen Report Abuse Who could have guessed that free money from the government could be so popular? And when that free money makes a new car the same price as a used car, most people will overwhelmingly select the new car? Wow, that's incredible! They need to study this unexplained marketing phenomenon with a big government grant.
NavyStore Champion Author Seattle Posts:2,531 Points:1,150,510 Joined:Aug 2005	Message Posted: Mar 10, 2010 12:29:38 AM Ignore NavyStore Report Abuse I still say they should have made it US manufactured cars only - no imports. Unfortunately, it means cars on a boat rather than foreign nameplates made in Alabama.
455Pontiac Sophomore Author New York Posts:137 Points:145,475 Joined:Nov 2005	Message Posted: Mar 10, 2010 12:27:57 AM Ignore 455Pontiac Report Abuse What a joke! Let's not only destroy the supply of used vehicles for people who cannot afford a new or late model used vehicle, but also destroy the used engine supply (acids/chemicals poured into engine blocks). Now, the poor folks can't even find a junkyard engine to repair their vehicle, much less find an older used vehicle to purchase because it got crushed. Now they're really stuck, but at least their accelerator pedal isn't. The liberals are perpetuating poverty as they always have. But it gets even better, the bulk of the new econoboxes bought were foreign cars, so how did that help America? I wasn't expecting a silver lining, but maybe some folks will turn in their Toyotas for a Ford. Just as an aside, my family has an '04 Pacifica w/ 70 K miles, '95 Jetta w/ 200 K miles, '87 Volvo 240 w/ 220 K miles, and a '76 Pontiac w/ 210 K miles. Wanna guess which was the only one to qualify as a clunker to trade in? Of course, the Pacifica! ...all at the taxpayer's (OUR) expense. Like I said...what a joke! [Edited by: 455Pontiac at 3/10/2010 12:31:24 AM EST]
Bus561 Champion Author Lexington Posts:11,299 Points:2,206,050 Joined:May 2004	Message Posted: Mar 10, 2010 12:26:08 AM Ignore Bus561 Report Abuse I still maintain that it was an unfair joke to say the least.
LoneGuy Champion Author Lansing Posts:3,456 Points:1,324,450 Joined:Aug 2005	Message Posted: Mar 10, 2010 12:25:43 AM Ignore LoneGuy Report Abuse Toyota took advantage of the majority of the clunker traffic but now they wonder if that was such a good idea. It just means more possible runaway vehicles to correct for.
raleightom All-Star Author Raleigh Posts:765 Points:215,710 Joined:Nov 2007	Message Posted: Mar 10, 2010 12:22:27 AM Ignore raleightom Report Abuse I'm happy for those that qualified. I drive a 1999 Ford Contour that I would have liked to have traded; but, I'm getting 34 mpg and didn't qualify. Mine is at the point that it will be needing maintenance. 110,000 and has never had maintenance other than frequent oil changes, wipers and the like. Sounds like the program worked really well. I never expected such a success.
altonb1 Champion Author Pennsylvania Posts:4,844 Points:651,725 Joined:Jul 2005	Message Posted: Mar 10, 2010 12:20:29 AM Ignore altonb1 Report Abuse It did a wonderful job for all of those people that bought nice, reliable, safe Toyotas....
Rageagainsttm Champion Author Tampa Posts:3,487 Points:927,055 Joined:Jul 2007	Message Posted: Mar 10, 2010 12:17:42 AM Ignore Rageagainsttm Report Abuse I agree that this program was a waste of money.