WASHINGTON — Now comes the hard part for the auto industry — luring customers without big Cash for Clunkers discounts.
The popular government rebates gave auto sales a jolt, but it was only temporary. Now, automakers and dealerships are forced once again to confront the worst market in a quarter-century.
While Cash for Clunkers may have proved there are still car buyers out there, it is unlikely the heavy demand will last. In fact, the big rush to car lots this month may have had the unintended effect of stealing sales from this fall and next year.
“There will probably be a little bit of a downward spike in demand going forward,” said Tim Jackson, president of the Colorado Automobile Dealers Association. “But the economy has improved, and we hope that will help overall sales.”
“I am really worried about this winter,” said J.P. Bishop, president of a dealership chain in central Maryland. “If you didn’t buy now, the only reason you are going to buy over the next three or four months is because your car died.”
Cash for Clunkers, which offered drivers as much as $4,500 off the price of a new, more fuel-efficient car, proved far more popular than anyone imagined.
The program was set to end Monday night. The government had set the deadline on estimates that most of the $3 billion set aside for rebates would be used up by then. Analysts initially figured the cash would last as long as November.
Automakers and dealers got a reprieve from a dismal year of poor sales, layoffs and the bankruptcies of General Motors and Chrysler.
