Government rebates had greater impact than initially thought

Last year’s “Cash for Clunkers” program not only moved a lot of vehicles, it apparently did so without significantly impacting future sales.

According to a study by Maritz Automotive Research Group, which surveyed 36,000 customers who bought a new vehicle in July or August 2009, the CfC program generated over a half-million sales that otherwise would not have happened at all.

Maritz Vice President Dave Fish said, “In fact, the program resulted in sales of vehicles to people who don’t normally buy them.”

Previous estimates of of so-called “incremental sales” had varied from 125,000 to 346, 000. Maritz’s estimate of 542,000 indicates that relatively few sales were pulled forward from the last four months of 2009. There was a decline in September, but Maritz claims that was due in large part to depleted inventories. Sales rates for the last quarter of 2009 were all up over earlier 2009 figures.

“Our findings not only provide strong evidence that many more vehicles were sold as a direct result of the incentive program than were previously estimated, but they also largely debunk the myth that ‘cash for clunkers’ mortgaged future car and truck sales,” said Fish.