"Cash for Clunkers" Provides Windfall for Some, High Prices for All, According to Edmunds.com
FOR IMMEDIATE RELEASE
"Cash for Clunkers" Provides Windfall for Some, High Prices for All, According to Edmunds.com
SANTA MONICA, Calif. — August 7, 2009 — Edmunds.com, the premier online resource for automotive information, warns consumers that car prices are climbing as the "Cash for Clunkers" frenzy is influencing the marketplace.
"Since the program launched, we've seen that shoppers are getting less of a discount off sticker price for new cars," notes Senior Analyst Michelle Krebs in her report on Edmunds' AutoObserver.com. "In some cases, they are choosing less expensive trim levels and option packages than had been typical in recent months, but paying more for them."
The below chart sets forth comparisons of pricing and discount percentages for each of the five most popular vehicles in recent "Cash for Clunkers" transactions. (Data on other models is available upon request.)
| Purchased Before Clunkers Program | Purchased During Clunkers Program | |||||
|---|---|---|---|---|---|---|
| Average MSRP | Average Sales Price * | Discount* | Average MSRP | Average Sales Price * | Discount* | |
| Ford Escape | $26,582 | $24,982 | 5.7% | $26,548 | $24,786 | 5.2% |
| Ford Focus | $18,692 | $17,587 | 5.7% | $18,795 | $17,721 | 5.4% |
| Jeep Patriot | $21,855 | $20,074 | 9.1% | $21,996 | $21,352 | 3.1% |
| Dodge Caliber | $19,671 | $17,368 | 11.7% | $19,885 | $19,181 | 3.8% |
| Ford F-150 | $36,248 | $32,877 | 8.7% | $35,249 | $32,503 | 7.3% |
*Does not include customer cash incentives.
"In truth, this program launched at the worst possible time of the year," opined Edmunds.com CEO Jeremy Anwyl. "The annual summer sell-down typically creates a rush of activity for the industry, and this year that rush came right after automakers cut production in response to the floundering economy. It's a simple case of supply and demand, bolstered by a reduced level of negotiation on the part of excited clunker traders. Add to this the automakers' unseasonable reduction in incentives and the message is clear: if you buy a car this summer, you should expect to pay higher prices."
About Edmunds
Edmunds publishes four Web sites that empower, engage and educate automotive consumers, enthusiasts and insiders. Edmunds.com, the premier online resource for automotive consumer information, launched in 1995 as the first automotive information Web site. Its most popular feature, the Edmunds.com True Market Value®, is relied upon by millions of people seeking current transaction prices for new and used vehicles. Edmunds.com was named "Best Car Research Site" by Forbes ASAP, has been selected by consumers as the "Most Useful Web Site" according to every J.D. Power and Associates New Autoshopper.com Study(SM), was ranked first in the Survey of Car-Shopping Web Sites by The Wall Street Journal and was rated "#1" in Keynote's study of third-party automotive Web sites. Edmunds is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit.
