Currently many people work on keeping their car running in order to avoid buying or leasing a new or used vehicle. This keeps money in their pockets that they use towards food, rent, clothing, and other expenses that life brings to the table. The amount of people thinking it would be better to keep their current car running instead of buying a new car was so dramatic that it hurt the car industry. Cars went back to having the image of a luxury and losing the necessity feeling that so many car commercials sold to the public. In fact the U.S. Government stepped in to help the U.S. automobile manufacturers out of the deep hole that they stood in with a bailout of $17.4 billion in 2008. The following year the automotive industry continued to feel the pain of the recession and in 2009 the U.S. Government initiated the cash for clunkers program, which should have also been known as the automobile manufacturers’ bailout light. Thanks to both of these bailouts the U.S. automotive industry was saved, but car dealers still continued to struggle.
Recently Automotive News reported that the vehicles similar to those that would be crushed and destroyed just a year and a few months ago are being sold in order to help sales. These automobiles may not be the best, but they are still able to run and that is what matters the most. When you are fixing your car be it changing the headlights, the radiator, or rebuilding the engine, sometimes it seems to be less expensive to just buy a used car. Especially if the used Eurostat Industrial Production Index car you buy can be fixed at a fraction of the cost that you’re fixing your current car at. Dealership groups AutoNation, Lithia, Asbury, Sonic and Penske, along with others, are selling their “clunkers” to the public in hopes of bailing themselves out from this economic recession. This type of creative sales may help these car dealerships in staying in business and paying their employees a wage that would allow them to continue putting food in their refrigerators.
Even though national news channels reports say that the recession may be nearing an end and that we are on our way to recovery, people still are living on a budget and these cars just may be the answer to that. Those that need to sell cars will be able to sell a car to someone in need to drive to school, work, or a job interview. Odd how a year ago these cars were condemned as clunkers and now they are seen as a small light at the end of the tunnel for some.
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Tag: clunkers
Things to Look Out For When Participating in the Cash For Clunkers Program
It shouldn’t come as shock to hear that the automotive industry really requires a jolt of energy in its current state to get the gears spinning again. With overall consumer spending down quite a bit the automotive industry that once thrived during economic times has recently seen and felt its fair share of turmoil. The newly rolled out government program, Cash for Clunkers, has been created by the Obama administration to not only stimulate the automotive industry with new sales and inquiries but also to remove some much less efficient older fuel burning vehicles.
For those who meet the criteria for this program they can acquire some really hefty discounts and rebates on the purchase of a new vehicle. Each vehicle owner will need to show one year’s proof of insurance, proof of registration going back one year and a clean title to even be considered for the government program. Make sure you have all of this taken care of before you go car shopping and spending time test driving new vehicles otherwise you will not qualify. The program has some very strict vehicle requirements as well so it is important to understand all the fine print before you decide to go car shopping. First off your vehicle must be manufactured twenty five years Why Is Manufacturing Important before the date of the trade in. Any older and a vehicle is ineligible for the program. Your current vehicle must also have a MPG rating of 18 MPG or less to the gallon in order to qualify for the cash for clunkers program. The car cannot be towed into a dealership. The car you drive must actually be drivable in order to drive off in a new vehicle. It is also OK to have a salvaged title as long as the vehicle is actually drivable. If you have a vehicle that has a Gross Vehicle Weight Rating (GVWR) of 8500lbs or over your vehicle will be classified as a category three truck and will require to be a 2001 model year or newer vehicle in order to qualify for the program.
There has much speculation regarding the Cash for Clunkers program since President Obama launched this effort. The reality is that it is one of many programs that are needed to really stimulate the economy. This one in particular has encouraged many to go out and purchase vehicles causing a healthy spike in automotive production, sales and an overall positive movement in the auto List Of Manufacturing Business. Any type of movement in the industry right now is encouraging for all dealership owners. This program has allowed many people the ability to save thousands of dollars buying new vehicles. New vehicles that would have never been purchased if this program did not exist are now being purchased hence stimulating sales in the automotive industry.…