FOR IMMEDIATE RELEASE
Interest in Cash for Clunkers Declining According to Edmunds.com
SANTA MONICA, Calif. — August 11, 2009 — Cash for Clunkers, which officially launched on July 27 and received an additional two billion in funding on August 7, just days ago, is already seeing interest in the program waning according to Edmunds.com purchase intent data. Edmunds.com, the premier resource for online automotive consumer information, noticed 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 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. "
For more information, please visit Edmunds' AutoObserver.com story "Cash for Clunkers Interest Slowing: Could Run Out of Steam Next Week" at http://www.autoobserver.com/2009/08/cash-for-clunkers-interest-slowing-could-run-out-of-steam-next-week.html.
About Edmunds Inc. (http://www.edmunds.com/help/about/)
Edmunds Inc. 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. Inside Line launched in 2005 and is the most-read automotive enthusiast Web site. CarSpace launched in 2006 and is an automotive social networking Web site. AutoObserver.com launched in 2007 and provides insightful automotive industry commentary and analysis. Edmunds Inc. is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit.