Ken’s Take: Maybe I was mistaken when I said I was mistaken …
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Excerted from CNNMoney.com, Interest in Cash for Clunkers sputters, August 11, 2009
After sparking an initial rush to showrooms, the Cash for Clunkers program seems to be running out of fuel.
Interest in Cash for Clunkers has fallen 15% since its peak, and the number of people planning to buy cars could fall to pre-Clunkers levels by next week, an auto research group said.
Under the Clunkers program, vehicles purchased after July 1 are eligible for refund vouchers worth $3,500 to $4,500 on traded-in cars with a fuel economy rating of 18 miles per gallon or less.
The program ran through its initial $1 billion in its first week,leading lawmakers to approve an additional $2 billion in funding.
But interest in the program peaked on July 29, and demand has waned, according to the report from Edmunds.com.
The report, which cited Internet shopping data, said if current trends continue, auto purchase intent will fall back to pre-Cash for Clunker levels by August 20.
The original money set aside for “created a Gold Rush mentality where consumers hurried to take advantage before funding ran out.”
The additional $2 billion in funding removed the urgency to participate.
Full article:
http://money.cnn.com/2009/08/11/autos/cash_for_clunkers_interest_declines/?postversion=2009081114
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The Homa Files 
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