Cash for Clunkers Bill Stimulates Economy Long Before the Government gives out rebates to consumers

Manufacturers, Dealers and Automotive Vendors have spent millions of dollars preparing to cash in on the $1Billion Automotive Stimulus Program

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) July 26, 2009 --NEW YORK, NY - The government Cash for Clunkers program (C.A.R.S.) has stimulated the economy long before the first rebate check was cut to a consumer for a new vehicle. “Manufacturers, Dealers and Automotive Marketing companies have spent millions to reach consumers who qualify for the $4500 government funded rebates,” said Sharon O’Connell from www.CashForClunkersInformation.org. “Big budgets have been activated to implement campaigns targeting clunker consumers who are eligible for the program.”

“The stimulus helps local markets more than car companies because car dealers stimulate the local economy through their big advertising expenditures, job creation and enormous state tax revenue,” added O’Connell. “To prepare for the program we bought new inventory, hired additional salespeople and we increased our ad budget by 88%,” said Scott Gruwell, from www.CourtesyChev.com, one of GM’s largest dealerships. “We spent $200,000 on a targeted direct mail and web campaign to every customer in our market and we launched a regional information portal called www.CashForClunkersDC.com” said Vince Sheehy, owner of www.Sheehy.com in Washington DC, Virginia, Maryland and Baltimore. “So far we have sold over 100 vehicles while most dealers in our area are just getting started.”

“Automotive manufacturers have bought more media in the past few weeks than they have in a long time,” said O’Connell. “Since over 80% of consumers initiate their vehicle searches online, Automotive Manufacturers and retailers have spent money to build websites to make it easy for consumers to use their government funded rebates with their organizations.” Ford Motor Company is promoting its program on their home page where consumers can link to a website that promotes Ford models that qualify. The New York Honda Dealers Association was way ahead of the curve when they initiated a campaign two weeks before the final ruling to conduct a targeted campaign to every qualified clunker owner in New York. “The majority of the clunkers in New York are domestic vehicles so Hondas strategy is a pure conquest play,” said O’Connell.

The Association created a regional website, www.NYCarsProgram.com, to educate New Yorkers about the program. “Honda is the most popular brand in the New York market and nearly all Hondas qualify for the Cash for Clunkers program, so we launched an interactive website to educate the public,” said Rob Sabbagh Jr., on behalf of the Honda Association that represents the #1 district for Honda in the nation. www.NYCarsProgram.com provides program information, a clunker calculator and a multi-media consumer tutorial that highlights the fact that nearly every new Honda qualifies. "You don't really need a complicated chart to find a qualifying vehicle at a Honda dealer," said John Mendel, executive vice president of American Honda Motor Co., Inc. A summary of the campaign can be seen at www.TheHondaCampaign.com

Early Winners:
A lot of the economic activity has come from early spenders who also appear to be the early winners in the race to reach clunker consumers. The winning retailers have been marketing to consumers for weeks while others are just getting started. Hyundai and a small group of dealer groups got a head start when they announced they would help consumers participate in the program starting on July 1st, while others were turning them away until the final rule was published on the 24th. The NHTSA and the National Automobile Dealers Assn. warned dealers against doing transactions before the final rules were announced on July 24th. Despite these warnings, Hyundai and a few dealers took the risk to help consumers get rebates when the law said they could. “Hyundai has attributed 10 percent of July’s sales to the program and some dealers have generated hundreds of incremental sales,” said O’Connell. “We quickly created a program that helped consumers take advantage of the program and it has helped our sales a lot,” said Rick Case, who has 6 Hyundai stores as a part of one of the most successful automotive groups in the country. “So far all our sales are conquest sales. More than 70% of the clunkers were Ford or Chevy trade ins, 71% of the clunkers were SUV’s, 93% had over 100k miles and 71% qualified for the $4500 because SUV’s only need a 5mpg improvement to get the full $4500 rebate. The average clunker trade in gets 17mpg and the average new vehicle gets 25mpg, which is an average of an 8mpg improvement,” explained Rick Case.

“We had over 100 orders by the time the final rule was announced and our customers appreciated the fact that we could help them when they were turned away by other dealers that weren’t ready,” said Vince Sheehy from www.Sheehy.com. It turns out their strategy was not very risky because the Consumer Assistance to Recycle and Save Act clearly states that consumers are eligible for rebates starting July 1st. “Edith and I, (Edith Singer, CEO of Paragon Automotive), did our homework and we realized the law could not change so we decided to help consumers on July 1st and it gave us a 24 day head start,” said Brian Benstock from www.ParagonCars.com. “One of our Honda stores had thousands of leads before the bill was signed into law and they have delivered over 40 vehicles before the final rules were announced on the 24th. All of the clunkers have been conquest sales so it is all incremental business. It is a jump ball for the clunker customers in our market and we are glad we jumped early”

Regional Consumer Information Portals:
Since consumers are looking online for information, many large dealer groups sponsored the launch of regional information portals that educate consumers in their local markets. "By informing consumers we can help them, the economy and the environment at the same time," said Bob Germain from www.Germain.com who sponsors www.CashForClunkersCarolinas.com to inform consumers in the Carolinas. www.CashForClunkersNY.com is an example of a regional information portal that offers a clunker calculator that helps consumers determine how much they qualify for and gives multi-media tutorials that explain what consumers can do to take advantage of the program. You can view a list of regional information portals below.

The regional websites and communication campaigns are built by www.CashForClunkersInformation.org, a private organization that lobbied for the bill, educates the public about the program, connects consumers with licensed dealers and helps retailers educate consumers in their local markets. The “most popular application on these websites is the “Clunker Calculator” because it makes the complicated rules easy for consumers to understand. “We have had over a hundred thousand consumers visit the site and use the Clunker Calculator. It gives consumers a shortcut so they don’t have to read the 137 page rule book,” said Sharon O’Connell from www.CashForClunkersInformation.org After 3 clicks of a mouse, consumers learn if they are eligible for $3500 or $4500. “By the time consumers call our dealership many of them have already used a Clunker Calculator and know which rebate they qualify for,” said Chip King from www.JerrysToyota.com, in Maryland.


NHTSA reminds consumers, "You do not need a voucher and you are not required to sign up or enroll in this program. Participating new car dealers will apply a credit, reducing the price you pay at the time of your purchase or lease, provided the vehicle you buy or lease and the vehicle you trade in meet the program requirements. The dealer will then obtain reimbursement from the government." Below you will find a list of regional information portals that are sponsored by licensed dealers who can provide pricing information for consumers who want to get a new, more fuel efficient vehicle:

- www.ClunkersAZ.com in Phoenix Arizona is sponsored by www.CourtesyChev.com
-www.CashForClunkersDC.com in Washington DC and Virginia is sponsored by www.Sheehy.com
-www.CashForClunkersNY.com in New York City is sponsored by www.ParagonCars.com
-www.ClunkersUS.com in Southern Florida, Atlanta and Ohio is sponsored by Rick Case
-www.CashForClunkersFL.com and www.CashForClunkersFLA.com in Naples and Sarasota Florida is sponsored by www.Germain.com
-www.CashForClunkersPA.com in Philadelphia is sponsored by www.Conicelli.com
-www.CashForClunkersVA.com in Virginia is sponsored by Priority
-www.CashForClunkersMaryland.com is sponsored by Jerry’s Auto Group
-www.CashForClunkersCarolinas.com for North and South Carolina is sponsored by www.BradshawAuto.com

Spanish speaking consumers can visit www.DineroPorSuCarcacha.com to use the same functionality.

www.CashForClunkersInformation.org
www.CashForClunkersInformation.org is a private consumer information portal, not a government website, so it is designed to give consumers a simple summary of the program with tools to help them determine how much funding they qualify for. The organization wants to thank its army of supporters who helped www.CashForClunkersInformation.org inform thousands of people about the program before it reached the senate so the public could influence their local representatives to get it approved. The organization is proud to have been an important advocate of the congressional bill and now continues to serve as a voice for the public to encourage retailers and manufacturers to offer additional incentives to consumers to get into more fuel efficient vehicles that will help the environment, the economy and their industry. www.cashforclunkersinformation.org helps retailers identify and educate consumers in their local area about the Cash for Clunkers program. www.CashForClunkersInformation.org was created by Level 5 Advertising, a marketing company who provides communication services to some of the largest automotive retailers in the world.

More information can be found online at http://www.CashForClunkersInformation.org

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