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Thursday, 23 July 2009 08:39

Auto Dealers Report Boost in Sales From Cash for Clunkers

In a nationwide survey conducted the week of July 19, three out of ten dealers report having made a sale involving a "Cash for Clunkers" voucher even though the rules about how the program will be administered won't be issued until Friday, July 24. However, the clarity those rules will provide is still needed: Nearly 90% of dealers said consumers had either low or moderate awareness of the program, and two thirds (66%) said information given to dealers up until this point is "insufficient.

The survey, conducted by Dealix, a division of Cobalt, and a leading provider of automotive sales leads for dealers, dealer groups, and manufacturers, shows that dealers remain hopeful that the CARS (Car Allowance Rebate System) bill signed into law by President Obama on June 24, will spur sagging new car sales. The bill will provide vouchers of up $4,500 to buyers exchanging cars that achieve less than 18 miles per gallon for new, fuel-efficient models. While the survey results document interest among consumers, dealers were vocal about their need for additional information.

In addition to the 34% of respondents who said their dealership had made a sale involving a to-be issued voucher, dealers reported that the program has increased shopping activity and that auto buyer interest in the program is strong.
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