Cash for clunkers in the budget, with 690,000 sales

WASHINGTON:Cash for Clunkers popular program generated about 700,000 new cars in recent months as the American automobile industry in a much-needed jolt of activity during the deepest decline in auto sales over the past two decades.

The government, releasing the final details of the auto incentives, announced today that retailers send 690,114 sales totaling 2.88 billion dollars, making the program's budget of just under 3 billion U.S. dollars.
Japanese car makers led by U.S. firms with the new car through the program, which ended late on Monday.

Many operators are still waiting to be reimbursed in cash incentives for Clunkers give car buyers and was allowed to submit the paperwork to request reimbursement until late Tuesday.

During the summer madness of dealers, analysts said the growth in sales of cars may be short-lived. Sales in July rose to 11.2 million, when converted into annual interest rate, the first month in 2009, where sales have increased more than 10 million level.
Declining consumer confidence late last year sent sales fall to depths not seen since the beginning of 1980, which prompted the legislature to create the program.

Jeremy Anwyl, CEO of auto Web site Edmunds.com, said that sales of cars and clearly derived from the strong increase in sales. But while incentives have helped consumers, the average price of the vehicle appeared as buyers rushed less worried discounts used.

Lack of supplies from the popular program to maintain high prices and a decline in sales of new vehicles. "We sell bubble and now that the bubble has burst," Anwyl said.

Obama said that the program a great success, says in cash Clunkers necessary stimulus for the automotive industry and the economy in general.

"Mountain added production shifts and job losers. Showroom Agony were brought back to life, and consumers buy fuel-efficient cars that save money and improve the environment," said Transport Minister Ray LaHood.

White House Council of Economic Advisers said the program will support economic growth in the third quarter of 0.3 to 0.4 percentage points due to an increase in car sales in July and August. It is estimated that about 42,000 jobs will be created or saved in the second half of the year, said the White House.

The biggest beneficiaries have been the Japanese industry, Toyota, Honda and Nissan, which accounted for 41 percent of the sale of new vehicles. That exceeded the Detroit carmakers, General Motors, Ford and Chrysler, which had a share of almost 39 percent. Toyota Motor Corp.
led the industry with 19.4 percent of new sales, followed by General Motors Co. with 17.6 percent and Ford Motor Co. with 14.4 percent.

Toyota Corolla was the most important purchase of new vehicles under the program. Honda Civic, Toyota Camry and Ford Focus was held over the next three places higher. All four are based in the United States.

The program, started in late July, offering discounts to consumers about $ 3500 and $ 4500 off a new vehicle in exchange for trading in their older, less fuel-efficient vehicles to be excluded. Trade-in vehicles must get 18 miles per gallon or less.

This proved much more popular than lawmakers originally thought. Congress has added another 2 billion dollars in the first 1 billion dollar budget, when the first pot of money, almost ran the week. The money should last through Labor Day, but the only funding lasted about a month.

Dealers said sales of new, but showed significant problems with trying to convince the government to pay back their discounts. Many operators are still waiting to be paid.

Peter Kitzmiller, president of the Maryland Automobile Dealers Association, said most retailers appeared to get their documents in time for Tuesday night and hoped to accelerate the pace of repayment.

Department of Transportation has announced that 2,000 people are processing applications of dealers. The program will be 50 million U.S. dollars for the administration, but transport officials said that the administrative cost would exceed that amount.
They expressed confidence in extra costs will push the total program cost over 3 billion dollars.

Some consumers may be regretting their purchases clunkers, especially when many buyers traded in a drive-off payment in exchange for new cars financed through loans.
Survey Money 1000 for participants Clunkers conducted by CNW Research, the automotive research firm in Oregon, found that 17 percent of the doubts about the purchase of a vehicle after taking the monthly payments of $ 275 cars -- $ 350 per month.

The government says that 84 percent of trade-in trucks and 59 percent of new vehicles cars. New vehicles purchased in cash Clunkers the average fuel efficiency of 24.9 miles per gallon, compared to an average of 15.8 mpg for trade-in, a 58 percent improvement.

American Society responsible for all top-10 traded-in vehicles. Ford Explorer four-wheel drive is the most popular, followed by Ford F-150 Pick-up two wheel drive, Jeep Grand Cherokee four-wheel drive Ford Explorer and two-wheel drive.