According to a new survey of auto dealers conducted by Dealix, buyers may be holding off on the purchase of a new vehicle until Congress comes out with a final word on its Cash for Clunkers legislation. The survey of most of the nation’s 20,000 franchised dealerships revealed a lot of faith in the proposed Clunkers program, with around 85 percent of those participating saying they believe government incentives will spur otherwise lackluster sales. Not all of the impressions are rosy, though.
The survey says a majority of those responding feel the back and forth debate over the terms of the bill is actually hurting sales. Why? Buyers that may be in the market for a new vehicle right now are holding onto their old gas-thirsty cars and trucks until a Cash for Clunkers or Cash for Guzzlers bill makes its way into law. That means in the short term, sales are actually being stymied by the bill.
Fortunately, the Senate is getting closer to voting on the two Cash For Clunkers bills currently before it, and if either passes by the end of the week there’s a good chance the program will become law by the end of the year. Most dealers say they welcome the legislation for obvious reasons, with around 70 percent of those surveyed planning to advertise to explain how the system works.
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