Monday, August 24, 2009

Clunkers Ends. Auto Sales Collapse to Follow.

I trust that by now everybody who needs a new car and happens to have a clunker to trade in has done so. The program ends tonight. Dealers are assured they will get their money even if the government bureaucrats haven't been as efficient as they no doubt will be with healthcare when it comes to paying them the $3,500 to $4,500 they're owed. It's been a solid couple of weeks of sales for auto dealers with all these new cars movin' on out the door. It will undoubetedly have an impact on GDP and jobs in the next series of reports that come out. Happy days are here again!

And now comes the fun part. As surely as the gimmick spurred new car sales it will crush them in the weeks and months ahead. It's a sad state of affairs. Auto dealers should probably not spend the wad just yet. The likely forecast is rain, rain, and more rain. The busy season was fun while it lasted wasn't it?

Oh and don't forget, soon we will enjoy "Cash for Refrigerators".
This sequel is sure to be action packed. So, consumers don't put the credit cards back in the wallet quite yet. You too can be part of $300M taxpayer giveway. The budget wasn't as high as the $3B for the original. But it's sure to have laughs, love, action. Shop early and often. I hear they're already planning for a trilogy to be announced soon at a theatre near you.

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