The Cash for Clunkers “bubble”
As an update to my post a couple of days ago….
Despite an overall positive tone spun in this AP article today about the Cash for Clunkers program, note the comments about it from an analyst within the industry (emphasis mine):
Jeremy Anwyl, CEO of the auto Web site Edmunds.com, said dealers and automakers clearly gained from the big boost in sales. But while the incentives helped consumers, average prices for vehicles went up as buyers less concerned about prices rushed to take advantage of the rebates.
Inventory shortages from the popular program could keep prices high and drive down new vehicle sales. “We have created a sales bubble and now that bubble has burst,” Anwyl said.
So, it’s clear that buyers didn’t get such great deals after all, given their lessened concern about sticker prices in light of the rebates… and the bubble created by the program will now burst!
Also, you will also note commentary in the article that indicates dealerships are having difficulty trying to claim the rebate. No big surprise there- it’s a government program! 
Not to mention all the dealers who have complained about not getting paid for the rebates they included in their financing deals.