According to an analysis by Edmunds.com, the government's Cash for Clunkers program is slowly driving up retail prices.
Huge demand coupled with dwindling inventories is the primary reason, but it also appears as though consumers are starting to pay more for some vehicles in order to take advantage of the government rebate.
Sounds backwards, but the numbers don't lie.
Before Cash for Clunkers:
| Avg. MSRP | Avg. Sales Price | Discount | |||||
| Ford | Escape | $26,582 | $24,982 | 5.7% | |||
| Ford | Focus | $18,692 | $17,587 | 5.7% | |||
| Jeep | Patriot | $21,855 | $20,074 | 9.1% | |||
| Dodge | Caliber | $19,671 | $17,368 | 11.7% | |||
| Ford | F-150 | $36,248 | $32,877 | 8.7% | |||
After C4C: | |||||||
| Avg. MSRP | Avg. Sales Price | Discount | |||||
| Ford | Escape | $26,548 | 24,786 | 5.2% | |||
| Ford | Focus | $18,795 | 17,721 | 5.4% | |||
| Jeep | Patriot | $21,996 | 21,352 | 3.1% | |||
| Dodge | Caliber | $19,885 | 19,181 | 3.8% | |||
| Ford | F-150 | $35,249 | 32,503 | 7.3% |
altimadude00 says:
04:22 PM, 08/ 7/09
Why-o-why would anyone pay MSRP for a Caliber or a Patriot?
jederino says:
04:25 PM, 08/ 7/09
Hmmm, not sure how these data sets relate to each other. However, this is the real goal of the program - to prop up automakers and retailers. Maybe the legislators are much smarter than we are: giving taxpayers a pork sausage, while convincing us we're tasting turkey.
dg0472 says:
04:53 PM, 08/ 7/09
Well you'd certainly expect the dealers to figure a little extra profit in with sales up and those huge rebates. Note that the Chrysler products, which had matching factory rebates, saw the biggest increases. The dealers are charging what the market will pay. Standard procedure there.
brn says:
07:23 PM, 08/ 7/09
Yea, I'm a little confused. Why does the Dodge show only an $800 discount when they're offering $4500 off? Are you comparing base price to optioned price?
"Sounds backwards, but the numbers don't lie."
It doesn't sound backwards and numbers are used to lie all of the time.
kyolml says:
08:26 PM, 08/ 7/09
Dang. I remember when back the Chrysler got rid all the dealers, they sold that Sebrings and Avenger $8,000 off at least. Now, even with the C4C, still more expensive than before!!!
People all trapped by the Gov't trick...
blueguydotcom says:
09:55 PM, 08/ 7/09
Wait a second, people are only paying 5% below MSRP for an Escape?! rofl
Man, I knew people were bad shoppers but good grief.
zoomzoomn says:
04:38 AM, 08/ 8/09
Wow. A truly sunny side to the CARS program. Dealers getting to hold a little more gross through slight of hand...thanks to the taxpayers.
eclogite says:
05:51 AM, 08/ 8/09
I didn't think the intent of the program was to actually BUY a clunker with the cash you get...
drinkduff77 says:
07:36 AM, 08/ 8/09
How did you guys come up those numbers? Also, the discount percentages are all off. Shouldn't it be calculated like this: MSRP - sale price = discount, discount/MSRP = discount percentage. Ex: Ford Esacape after c4c, $26548-$24786 = $1762, $1762/$26548 = 6.6% discount
carswapper says:
09:03 AM, 08/ 8/09
Cant wait for my lease to be over so I can buy a used SUV for cheap
brn says:
09:12 AM, 08/ 8/09
I'm with drinkduff. These number needs some explaining. It doesn't quack like a duck.
compliance says:
02:35 PM, 08/ 8/09
Edmunds numbers are always too high. I'd be embarrassed to pay the going prices they report.
estreka says:
02:50 PM, 08/ 8/09
Looks like somebody did some public math.
Judging from the data provided, I'd say C4C is having a negligible effect on sale prices. Do these numbers reflect the $4500/$3500 rebate?
greenpony says:
03:02 PM, 08/ 8/09
Why do you only have Chrysler and Ford vehicles? How are GM, Honda, Hyundai, etc vehicles faring?
smrtypants44 says:
02:46 PM, 08/ 9/09
These numbers wouldn't include the C4C value because it's not really a discount on the car. A "Dicount" is money taken off the top that is not paid. C4C is more of a trade in/ down payment that the government is paying.
brn says:
12:27 PM, 08/10/09
It seems they don't include the factory rebates either. Am I just confused? Where's the matching Chrysler rebate?