Consumer interest in the federal "cash for clunkers" car program is waning, according to Edmunds.com, the Santa Monica-based auto information site. Edmunds based its conclusion on decreased Internet traffic among consumers seeking car-buying information.
The clunkers program, which offers consumers credits of up to $4,500 for turning in old gas guzzlers for more fuel-efficient new cars, began July 27 and was so popular the Obama administration quickly sought additional funding.
However, Edmunds said Tuesday interest peaked July 29 and has since declined 15 percent. Edmunds' senior analyst Michelle Krebs said the original funding was "very low in relation to the size of the auto market," creating a "Gold Rush mentality where consumers hurried to take advantage."
The added funding has removed the sense of urgency and interest in the program is waning, Krebs said. Edmunds projected that car-purchase intent will be back to pre-"cash for clunkers" levels by Aug. 20.
Here's Edmunds' press release from last Aug. 6 (didn't see the one from yesterday this article refers to). My favorite line:
"And now, more than ever, it is important for car-buyers to do their research so that they pay a fair price for their new vehicles. . . . Our analysts have determined that dealers are enjoying a 20 percent increase in gross profit per sale involving a clunker trade-in since the program launched."
Emphasis added.