Tulsa World: Ford pickup state's top purchase in Cash for Clunkers

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Ford pickup state's top purchase in Cash for Clunkers

By PAUL MONIES The Oklahoman NewsOK.com
Published: 11/11/2009 7:49 PM
Last Modified: 11/11/2009 8:25 PM

Oklahomans stayed fairly loyal to their old car brands when they took advantage of the Cash for Clunkers rebate program this summer.

Mirroring national rebate data, the most common switch in Oklahoma was an old Ford F-150 pickup for a new one. That was followed by people trading in old Chevy or GMC pickups for new Chevrolet Silverado trucks.

Buyers across the state chose Chevrolet, Ford and Toyota vehicles in roughly half the new purchases, according to an analysis of federal rebate data. Vehicles from the Big Three — Ford Motor Co., General Motors Co. and Chrysler Group LLC — were among the most traded-in.

Tulsa area dealers sold about 2,100 new vehicles under the program, including 208 by Jim Norton Toyota, the highest seller in the area.

“We enjoyed it and would do it again if they wanted us to,” said Ken Spencer, a new car manager at the dealership. “It was a headache, but everything got worked out and we got our money pretty quickly.”

Also in the Tulsa area, Don Carlton Honda sold 201 cars through the program and Primeaux Kia sold 189. Three other dealers registered more than 100 sales.

Oklahoma residents traded in more than 8,700 of their gas guzzlers to qualify for about $36.8 million in rebates under the Consumer Assistance to Recycle and Save Act. The program ended in August after granting $2.8 billion in rebates across the country.

The Cash for Clunkers program was intended to spur auto sales and take older, less-efficient vehicles off the road. But it came at a time when dealer inventories were low and gasoline prices had stabilized from their highs in 2008, said Paul Taylor, chief economist at the National Automobile Dealers Association. Those factors likely limited the program’s effectiveness.

Taylor said typical new-car buyers spend an average of $28,000, so the program did little to help lower-income buyers. However, it likely provided a short-term boost to retail sales and aided industrial production in the months that followed as automakers replenished their inventories, he said.

“It probably pulled a lot of people off the fence who are not traditional new-car buyers,” Taylor said.

Mike Fowler, CEO of Fowler Auto Group, made an early commitment to the program and ended up being Oklahoma’s top dealer in Cash for Clunkers rebates. He said initial hurdles with the program’s administration, such as online rebate processing and dealer payments, were straightened out quickly.

For the most part, Oklahoma buyers who traded in medium and large trucks bought newer models of trucks, according to the rebate analysis. People who traded in small trucks mostly chose new cars, while those who traded in cars stuck with cars.

Trucks and vans made up 86 percent of the vehicles traded in for rebates in Oklahoma. New purchases were split between cars, 55 percent, and trucks, 45 percent.

In Oklahoma, traded-in vehicles had an average fuel efficiency of 15.5 miles per gallon. New vehicles bought under the rebate program averaged 24 miles per gallon, according to the analysis.

“About 80 percent of the cars we saw were, without a doubt, clunkers,” Fowler said. “They needed to go away. The rest had some life in them but probably weren’t worth enough to trade in.”

Fowler said showroom traffic dropped off in September and October after the program expired. It has since picked up in November, he said.

Taylor, the economist, said there’s talk in Washington of restarting the Cash for Clunkers program. The likelihood of another round grew recently after Congress approved an extension of another stimulus program, the homebuyers’ tax credit, that was set to expire later this month, he said.

Fowler, whose company has dealerships in Oklahoma and Colorado, said he doesn’t favor another round of Cash for Clunkers spending.

“The car business is beginning to get on the right path,” he said. “I don’t think we need any more government help.”

Kyle Arnold of the Tulsa World Business staff contributed to this story.

By PAUL MONIES The Oklahoman NewsOK.com

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	Report Comment Thunder196, Tulsa (11/11/2009 9:58:56 PM) Does that first sentence mean they traded in old Ford clunkers for new Ford clunkers. Gotta love the Oklahoman News.
	Report Comment Thunder196, Tulsa (11/11/2009 10:00:56 PM) I do own a 1996 Ford F150 Eddie Bauer. Would consider buying another one if I decided to trade mine in. Still like new though, only has 100 thousand miles on it. Still has a lot of good mileage to go.

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