Hyundai Scores Early With Cash for Clunkers
07-25-2009, 10:01 PM
#1
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Hyundai Scores Early With Cash for Clunkers
http://www.edmunds.com/insideline/do...mktid=cj260233
FOUNTAIN VALLEY, California — Hyundai became the first automaker to honor the government's Cash for Clunkers program-officially called Car Allowance Rebate System (CARS) — even though program rules were just released on Friday morning. At that same time, dealers began to sign up to administer the vouchers, which range from $3,500 to $4,500.
Even though processing for the vouchers does not begin until Monday, Hyundai began honoring the CARS incentives on July 2, by backing dealerships with short-term cash advances as the rules were being written for the program. Since then, the Cash for Clunker trades have accounted for about 11 percent of Hyundai's sales so far this month, the company said.
The Hyundai Elantra was the most popular model purchased under the new CARS program, making up nearly 33 percent of sales. With manufacturer incentives and a full CARS rebate for a qualifying "clunker," consumers can purchase a new Elantra for as little as $8,620, Hyundai noted.
Behind Elantra, the Hyundai Sonata was the next most popular at 27 percent of clunker trade-ins, followed by the Accent at 19 percent.
Hyundai Motor America said its early statistics on Cash for Clunker trades show an average 59-percent fuel economy gain between the clunker and the new vehicle purchased.
Hyundai reports that 86 percent of the initial trades taken were a truck, SUV or van, and those trade-ins were replaced with a car. The average age of a trade-in model was nearly 14 years old; the average odometer reading was more than 140,000 miles. The average "clunker" achieves about 16 miles per gallon according to EPA data, while the average new car sold under the program achieves more than 25 mpg.
Hyundai's data shows 32 percent of the trade-in models reported by dealerships were Ford vehicles, followed by Dodge at 23 percent.
In addition to being credited for the government's clunker voucher, Hyundai buyers are covered by Hyundai Assurance, which allows buyers to return the vehicle if they lose their income and the Hyundai Assurance Gas Lock program, which offers a year's worth of gas at a guaranteed price of $1.49 per gallon.
The Cash for Clunkers program received $1 billion from Congress in funding and runs through November, or whenever the money runs out. Some buzz in Washington has the program being expanded with more funding beyond that point.
Even though processing for the vouchers does not begin until Monday, Hyundai began honoring the CARS incentives on July 2, by backing dealerships with short-term cash advances as the rules were being written for the program. Since then, the Cash for Clunker trades have accounted for about 11 percent of Hyundai's sales so far this month, the company said.
The Hyundai Elantra was the most popular model purchased under the new CARS program, making up nearly 33 percent of sales. With manufacturer incentives and a full CARS rebate for a qualifying "clunker," consumers can purchase a new Elantra for as little as $8,620, Hyundai noted.
Behind Elantra, the Hyundai Sonata was the next most popular at 27 percent of clunker trade-ins, followed by the Accent at 19 percent.
Hyundai Motor America said its early statistics on Cash for Clunker trades show an average 59-percent fuel economy gain between the clunker and the new vehicle purchased.
Hyundai reports that 86 percent of the initial trades taken were a truck, SUV or van, and those trade-ins were replaced with a car. The average age of a trade-in model was nearly 14 years old; the average odometer reading was more than 140,000 miles. The average "clunker" achieves about 16 miles per gallon according to EPA data, while the average new car sold under the program achieves more than 25 mpg.
Hyundai's data shows 32 percent of the trade-in models reported by dealerships were Ford vehicles, followed by Dodge at 23 percent.
In addition to being credited for the government's clunker voucher, Hyundai buyers are covered by Hyundai Assurance, which allows buyers to return the vehicle if they lose their income and the Hyundai Assurance Gas Lock program, which offers a year's worth of gas at a guaranteed price of $1.49 per gallon.
The Cash for Clunkers program received $1 billion from Congress in funding and runs through November, or whenever the money runs out. Some buzz in Washington has the program being expanded with more funding beyond that point.
07-26-2009, 07:00 AM
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07-26-2009, 11:40 AM
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Your Kool-Aid level must be in overfill if you are going to blame a party with no power in the House, Senate, or WH for stupid laws.
Why don't you just blame the Whig or Federalist parties while you're at it?
07-27-2009, 09:25 AM
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1) The left one is raw because our tax money is going to stimulate sales of a mostly-imported product.
2) The right one is raw because many of the cars being turned in for destruction are classic American iron... Mustangs, Camaros, and such that could be fueling a restoration industry, collectibles, and jobs.
Can you imagine working at a dealership where someone comes driving in with an IROC Camaro T-top car and wants to trade it for a Friggin Elantra?!?! And you can't do anything but watch it go to the shredder.
Waxing philosophically for a moment...
With every passing day, month, year, I reposition myself more to the conclusion that I do not want to be in this world in another 40-50 years. The changes I have seen in my 4+ decades are profound, and definitely not all positive. My mind cannot grasp all of the possible scenarios and situations that will come forth in the next 50 years, but I get the distinct feeling that it will not be the basic, simple, black-and-white, right-and-wrong world that I craved and enjoyed more as a child. Our trade policies, our environmental policies, our own judicial system for Pete's sake... they are all going down the tubes at a fast pace, and we seem to be pushing them along instead of trying to turn it around.
I can tell you this much... My Grandfather fought in WWII as an electronics tech working on carrier-based P-51 Mustangs and Corsairs out of Norfolk, VA. When he died at the age of 80, he went to his grave with an old Ford Maverick in the driveway, and the man told many stories of friends and comrades that made the ultimate sacrifice in battle at the hands of planes powered by Mitsubishi engines and tanks powered by Daimler-Mercedes diesels. It was largely my grandfathers fireside discussions when I was an impressionable teenager that formed my patriotic foundation, and when you see a man 72 years old with tears in his eyes while talking about his friends that fell fighting for our freedom - well, it does something to you. I guess sometimes I may be too patriotic with my US-or-bust attitude, but it's an honest feeling that I siimply can't help having.
Lastly, we here in America have all sat idly by and allowed our civil servants to serve themselves for far too long. Politicians that will sell their own grandmother for the right price, CEO's that are allowed to run companies into the ground only to liquidate them or sell them off and then pull the rip-chord on their golden parachute, doctors that have their own practices with 4 beach houses around the nation that still have over $300k in unpaid student loans, insurance companies that refuse to cover your destroyed home after 20+ years of paying premiums because you did not opt for subsection A of paragraph 12 when you signed the contract... you see my point?
Now we've got people in Washington that have allowed "free trade" to be turned into "we-trade, you-paid" and refuse to stand up to foreign contries that have been taking advantage of us for decades. As long as some elected official is getting his palms greased, he could care less if his own family is losing their jobs. The saddest thing of all in my eyes is that there is no dignity, no pride, and no humility in America anymore. We have become a nation of self-centered opportunists that are only out for each individual's maximum personal gain - at any cost to the nation as a whole. "The nation can take care of itself - I'm just in it for me".
Guys, why don't we care about each other or our country any more?
My Grandfather would be turning in his grave if he knew his tax money was going to subsidize trading a Ford or GM product in for an import - ESPECIALLY a Japanese or Korean one.
Sad.
07-28-2009, 01:22 PM
#6
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I think you're on to something. We're in a period where America needs more support than ever, and I sometimes fear we don't have enough American blood between all of us to carry on the legacy of our parents and grandparents.
People like our grandfathers who fought in WWII -- most of them have already left us the keys to their kingdoms. The few that remain, well, they probably feel pretty powerless and overwhelmed at how their country has changed in the last 25, 50 years. I'm only 26, and my head is spinning.
Life has become too easy, people too lazy, or a combination of both.
Forget politics. We need regular citizens of any party to be excited for the next 40-50 years in this country and to make choices that support our goal of being the greatest country ever. We need a willingness to make America great.
We forget that we ultimately steer this bird. If the government sets up a cash for clunkers program for all automakers, we as American supporters should make choices that support our country, us. We have the freedom not to...part of which makes this country so great.
The choice to make things awesome or destroy our country completely is up to you and I.
If someone wants to trade in their IROC for a $5500 Hyundai, I'd hope they have really compelling personal reasons to do so. And I hope, in 3 years, when their dispose-a-car needs replaced, they'll consider American again.
Cash for Clunkers is one of the many opportunities we have to support our country right now. Let's not screw it up.
People like our grandfathers who fought in WWII -- most of them have already left us the keys to their kingdoms. The few that remain, well, they probably feel pretty powerless and overwhelmed at how their country has changed in the last 25, 50 years. I'm only 26, and my head is spinning.
Life has become too easy, people too lazy, or a combination of both.
Forget politics. We need regular citizens of any party to be excited for the next 40-50 years in this country and to make choices that support our goal of being the greatest country ever. We need a willingness to make America great.
We forget that we ultimately steer this bird. If the government sets up a cash for clunkers program for all automakers, we as American supporters should make choices that support our country, us. We have the freedom not to...part of which makes this country so great.
The choice to make things awesome or destroy our country completely is up to you and I.
If someone wants to trade in their IROC for a $5500 Hyundai, I'd hope they have really compelling personal reasons to do so. And I hope, in 3 years, when their dispose-a-car needs replaced, they'll consider American again.
Cash for Clunkers is one of the many opportunities we have to support our country right now. Let's not screw it up.
07-28-2009, 03:22 PM
#7
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It sounds like Hyundai corporate took some initiative and by supporting their dealers in this are going to get market penetration they would have never gotten otherwise. There is risk in it for them since the rules still seem to be being amended, but they haven't done anything you can't find in a business textbook.
For all I know, the Big 3 may have contemplated something similiar and simply not had the resources to do it, but at some point they've got to become competitive when everything isn't going there way.
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