Used car dealers have expressed fears that the federal government's Cash for Clunkers program would rob them of sales. Other than a dip in certified pre-owned sales at franchise dealers, this worry seems to be unfounded. In fact, the shortage of some used vehicles may be driving prices up. And more good news: ADESA's Tom Kontos predicts this trend will continue into 2010.
Cash for Clunkers is the latest example of the Law of Unintended Consequences. While new car dealers are reaping huge benefits as consumers flock to their showrooms, charities, parts retailers and low income Americans are paying the tab. The program is driving up vehicle prices, and car parts from junked cars are now being crushed instead of disassembled, driving up parts prices. All of this is happening at the low end of the market affecting those least able to afford a new car.
Thousands of deaths and hundreds of thousands of crashes are now attributed to the dangers of distracted driving with texting being the worst form. US DOT is planning a summit to gather expert input into the problem before taking nationwide action.
Telematics technology using the full range of wireless communications and sophisticated applications are penetrating the light and medium-duty truck fleet sector. Communications giants are teaming with hardware makers and application developers to bring full on-board tracking and inventory systems to service and delivery fleets.
GMAC Financial Services will offer a lease program on selected models for qualified customers, including 2009 Cadillac CTS, Chevy Malibu, Chevrolet Traverse, and 2010 Buick Enclave, Buick LaCrosse, Chevrolet Equinox, GMC Acadia.