Cash for Clunkers proved to be beneficial to everyone, especially considering that everyone had been hurting before the program’s start. But it was the foreign automakers that benefited even more as their market share actually increased.
Critics of the Cash for Clunkers program warned that it could fuel the sales of foreign brands says Philadelphia Chevrolet dealers, thereby funneling U.S. tax payer dollars away from American companies and into the pockets of other brands. Illustrating the advantageous position of foreign brands is the statistics from J.D Power which suggest that normally U.S. car buyers purchase domestic brands 47% of the time. However, during the Cash for Clunkers program, that percentage fell to 38.5%, indicating a growing preference among American consumers for foreign makes, which has come to no surprise to Tampa Honda.
One of the factors contributing to the interest in foreign automakers is the concern over fuel efficiency point out Toyota Quick Lube. Under the program, most buyers were fixated on improved fuel efficiency. Unfortunately, most consumers also associate foreign brands with improved fuel economy.
With the goal of the Cash for Clunkers program to improve the environment and get more gas-guzzling vehicles off the road, consumer perceptions played a larger role than anticipated notes Car Loans Macon.
Since American buyers still regard Japanese and Korean brands in particular as the leaders in providing fuel efficient vehicles, it was not too surprising to dealers such as Longview Honda Service that consumers flocked to these showrooms more often than domestic brand showrooms. Perhaps this is yet another warning to domestic brands that changes need to happen fast. Continue reading ‘Cash for Clunkers Successful for Foreign Automakers’
