Cash for Clunker

The cash for clunker program seems to be a good move on the part of the government to put some stimulus in the economy. The program reported huge success. Many car dealers ran out of inventories, something many car dealerships have not seen. Certainly, this would not be possible without the new bold initiative by the Obama‘s administration.

Despite the high level of traffic that many car dealers enjoyed during the clunker program, there seems to be a potential drawback. One of the potential drawbacks is that car sales have moved forward; in other words, car buyers made their purchases earlier than they would if the situation were otherwise. Thus, car dealers are likely to see little or no sales for the next few months. However, they should have plenty of cash to tie them over those few sluggish months.

Well, it should be noted that the president’s promise to create jobs is being fulfilled, if only in part.


—Wesley Palmer, MBA
http://www.wezpa.com

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