Cash for Clunkers, which officially launched on July 27 and received an additional two billion dollars in funding on August 7, is already seeing interest in the program waning according to Edmunds.com purchase intent data.
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Edmunds.com says that according to its data, interest peaked for cash for clunkers on July 29 but has since seen activity decline by 15 percent.
“The funding for the original program was very low in relation to the size of the auto market. This created a Gold Rush mentality where consumers hurried to take advantage before funding ran out. With additional funding now approved, there is no longer an urgency to participate in the program,” said Michelle Krebs, Senior Analyst for Edmunds.com. “Interest in the program is fading as fast as the first billion dollars was used up.”
The Edmunds.com analysis was based on Internet shopping purchase intent data. It also showed that if current trends hold, purchase intent would be back to pre-Cash for Clunker levels by August 20.
“Despite this decline in clunker activity, we expect auto sales to be improved through the summer as value-oriented consumers look for deals before new models start arriving,” said Jessica Caldwell, Director of Industry and Pricing Analysis for Edmunds.com.
“The real risk is this fall and whether the economy will have picked up to keep sales at current levels. “
