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New cars were sold under the cash for clunkers program.
If he did not take advantage of the government rebate is it too late to get a good deal on a new set -- wheels joining us now.
Jeremy and will CEO of Edmunds dot com Jeremy.
Did did all first of all I go into a car lot today everybody's expecting September October car sales to be down.
Will they be hungry for my business or will they -- -- itself.
Here's what happened and obviously in August as you pointed -- we had a huge lift in sales -- been the best month all year.
Normally in the summertime people looking to buy a car in September might expect to find big bargains because that's generally when cars go on sale that this here's a little different because you're gonna find a lot of dealers.
Who have very -- very little in inventory so this election's going to be down and prices have shot up so that's been a real sort of disruption in the marketplace is not clear exactly how that's gonna last -- -- from your perspective is sort of an objective viewer observer of the whole industry.
What do you think the program the cash for clunkers even with the pros and cons.
What's its successful in -- in that in in what set out to do.
Now I think there's winners and losers I don't think it's an absolute yes or now so I get a -- certainly it was a great program.
I think the industry was excited about it but right now what we're going through is a precipitous that this -- really steep decline in sales so last month we sold about fourteen million units on an annualized basis.
The run rate today.
Is a little under eight -- -- sales are not quite and a half but certainly a drop and that's the big question how long is this gonna last because it could happen that we actually pay back all those extra sales that we saw in August and an accomplished you know nothing at all -- -- an artificial -- essentially.
It was clearly artificial -- -- it was the government big basically the government created a bit of a sales bubble.
So I think that's really the question is is are sales going to be at this level for the entire month of September you know if so.
August was the -- best month of the year off what could be by the last by the worst month of the year that's certainly not a good story.
-- these additional.
Possibilities and that is.
They didn't need a car was just a good deal.
Now they got payments that they can't -- other things now so it's not just auto sales but what what did that what of this new higher -- -- take away from everything else that they have to do.
There could be our restaurants movie theaters that aren't so we have all these cars sold there were new cars and they had to qualify on a list.
What about the used car market because those cars had to be crushed so.
If I was use it's only a used car -- I have been a better position as a seller.
He -- kind of a mixed bag.
React as they used car market is huge it's actually about three times bigger than than the new car market so clearly that those pricing pressure on some of that the cheaper used cars because we took.
As you say about 700000 of those out of the market -- they basically got scrapped.
The more recent used cars there's actually some some pretty good deals out there because what typically happen with clunkers is -- people would have traded and then on a used car.
And many of those people because of the program bought a new car so there's some gaps in demand in the used car market -- there are some deals out there talk about the leasing business that used to be big is it still.
As lord does it was and doesn't that kind of creative force.
Re -- every three or 45 years -- the Lisa Bryant.
Yeah that's always the attraction -- -- is that it does bring people back into the marketplace pretty predictable cycle.
What's happened there's a lot of the banks though.
Our leases just like on regular car loans home loans they have had a lot of loans of loans come back and has been some big losses on the banks the finance companies pull back on leasing.
Started to get back into it but it's still not as big as it was -- year ago or two ago.
Info as far as financing goes and that brings to back to the whole question we ask so many people of so many different industries.
Can people get car loans and does -- have to go to is it easier to go through the manufacturers.
But getting better so I think the finance companies -- GM AC -- the Ford Motor -- were really struggling themselves last year they've gotten on more solid footing so they're being more aggressive with loans.
It really depends on the bank I mean clearly at the consumer has good credit that's one issue.
But a lot of banks got out of the business of loaning on car -- and they they basically moderated that by raising rates so there's a huge variation in rates today you can see car loans from credit unions.
For say three to 4%.
Some banks are quoting 8% so I think it really pays for consumers shop around.
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