Monday, August 3, 2009

Evaluating the Impact of Cash for Clunkers

The recent CARS (aka “Cash for Clunkers”) campaign has driven the media into frenzy into whether the program is going to be a wild success or wild failure. Taking politics aside, we took a look at searches indicating interest for car purchases.

Ford (NYSE:F) numbers released today show an increase in July sales of 2%. Looking at the overall search numbers, this trend appears to be moving in the north-bound direction. Use search to keep a relative pulse on where consumers are moving their money to buy new vehicles such as Honda (NYSE:HMC) and Toyota (NYSE:TM).

The jury remains out on how Cash for Clunkers will impact policy, but its impact on general car sales for July and August are significantly high. While a seasonable positive bump is expected for these months, stay close to how new car sales are trending with indications of interest through search.

1 comment:

  1. There's a tricky aspect to this analysis, because last summer was marked by a used-car buying frenzy spawned by the Cash for Clunkers program. …
    cash for old cars


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