News Ticker:

Home

Program a big pain for dealers

August 4, 2009 - 6:14pm

TYLER-The "Cash for Clunkers" program continues to be front page news. Thousands of people flocked to their nearest dealership last weekend to get in on the great deals. But what do these car lots look like after the rush is over?

In just one week, Hall Buick, Pontiac and GMC in Tyler has gone from being full of cars to almost nothing. To say the least, "Cash for Clunkers" exceeded expectations.

Now manufactureres can't keep up.

"I guess it's a good problem to have," sales manager for Hall, Brad Hall, said. "We have less inventory to select from, however, it is coming."

Experts say this is because when GM and Chrysler went through bankruptcy a couple of months ago, they temporarily shut down their plants.

But while some dealerships are having trouble filling their lots, other dealers are having trouble emptying theirs. Used car dealers say the clunker's program is cutting into their business. Dealers say because the program requires dealers to destroy the so called clunker, its cut down on the amount of cars they would normally buy and re-sell.

And used car dealers aren't the only ones hurting from the program. Non-profits that depend on donations of old cars are also suffering.


1 comment

Worked at a dealer that inflated downpayments and did creative financing. Sold lots of vehicles, but also had a large yard of repos after a year with no way to sell the over inflated repo.
Are we just passing a problem down the line????????????

charles

7 months ago

Post new comment

The content of this field is kept private and will not be shown publicly.
This field is for SPAM prevention and should be left blank. If you see this please ignore it.
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
w
U
a
r
8
F
Enter the code without spaces and pay attention to upper/lower case.