After "Cash for Clunkers"

If you were one of nearly 700,000 people who could benefit from cash for Clunkers program, congratulations, you've probably got a good deal. On the other hand, if you bought a car without a clunker in the last month I overpaid.

Prices for passenger cars during Clunkers program has gone to all but the buyer with an average of $ 3,000 received benefits, others not.

And if you absolutely need to pay to buy a car in the next two months, probably more.

This is a simple matter of supply and demand. Cash for Clunkers highly successful program has proven this wrong. For months, normally a peak period, the stock car buying low and customers are expected to increase car prices and less choice, experts say.


Clunker Program arrived late, said Jeremy Anwyl, CEO of auto website Edmunds.com.

The program was launched in February, when stocks were high and sales are at a record low in cash for Clunkers could help fill a massive fall-off in sales.

"They are probably confused with the longer the automotive industry was uptick, however," he said.

He kicked revenues grow too much, too fast, "he said. Factories could not show the car fast enough, replenishment of stocks, which have been emptied so quickly.

This means that operators are now facing a drought of new models on sale, followed by flooding.
0:00 / 4:37 Warning: Auto Sales Fall Forward

So if you want a new car at a good price, hold and spend the next two months, choosing from a good jacket.

Factories have already begun to churn out new cars to meet the stock drained. Look at the price falls in November and December, after the dealer showrooms filled before what is traditionally a slow season sale of automobiles.

Although it seems that customers want to buy a smaller car now, the program is finished, according to Edmunds.com, the decline in customer numbers fall considerably outmatched stocks.

Before the program ended on Monday evening, the prices on popular models forced upwards.

Average revenue per dealer Ford Escape has increased from around $ 1200 before the program starts Clunkers more than $ 1700 during the program, according to data from Edmunds.com. Dealer profits for Toyota Corolla has grown from less than $ 400 to about $ 830. The average profit more than doubled minibus on an average of about $ 700 to about $ 1,500.

For those who benefit from the trade clunker, the program benefits more than offset the jump in price. On the owners of medium clunker got $ 3000 more for your trade-in vehicles than would otherwise.

"The owner clunker very well," Anwyl said. "Everyone else just paid more."

Prices remain high in coming months, Anwyl predicted.

Only those who buy vehicles that do not qualify for the program as a clunker big SUVs and luxury cars, may still be able to find some offers for the coming weeks, said Jesse Toprak, an analyst at auto website prices TrueCar.com .

"You will see some large SUVs discount of 20% to 30% off sticker," he said.

For the rest, the patient will be rewarded with customers. Big incentives and discounts to get steeper in the month of November and December, Anwyl said.