I forgot, you also asked why would any administrator or dealorship enter into such a program?

Pretty much because the economy is continuing to tank. Car lots simply aren't moving and the dealorships aren't bringing in any income - I'm talking slower than snail pace. I know this from personal insight into speaking with the dealorships and their opinion of the economy. Their opinion is people are afraid to buy right now. So, the reason behind their accepting the terms of agreement is to bring in some money vs. very-very little if that at all.

The "Cash for Clunkers" is pushing the people "on the fence" to go ahead and spend or borrow that $15,000 - $40,000 because they feel even if they keep the car a year or two they can flip it or re-sell and it makes them feel good to see a dollar amount given to them in addition to rebates. It's a bit of psychological play on the mindset of the people wanting to spend but are hesitant and the businesses that desperately need the income.

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Elleise
Clairvoyance Editor

Last edited by Eleise - Clairvoyance; 08/04/09 06:41 PM.
Karen Elleise
Clairvoyance Editor
Clairvoyance Site