‘Cash-For-Clunkers’ Plan Attracts 16,000 Auto Dealers (Update2) - Bloomberg.com
Quote:
16,000 U.S. auto dealers have applied to participate in the “cash-for-clunkers” vehicle trade-in program, or about 80 percent of the nation’s new- vehicle retailers, Transportation Secretary Ray LaHood said.
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The Transportation Department has processed 15,893 dealer applications, LaHood said.
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someone please explain to me why dealers have to apply and be accepted for the cars (cash for clunkers program)?
ill also note that last year the market "pent up" about 3m cars, and likely has "pent up" even more than that this year. the reality is the pent up demand will be unleashed once we have some form of recovery (i still personally think the initial recovery will be parallel the clinton jobless recovery)
the auto industry is extremely cyclical.
in the last 20 years about 60m new us cars on the road as compared to 1989 data. (189m in 1989 to current number of about 250m). 2009 is likely the first decline since ww2 was actively being fought (1945).