• fb_803787365 avatar Robyn Posted: 8/7/2009 8:37am PDT

    Perhaps our press release was a bit confusing and we here on the Kelley Blue Book public relations team apologize for that. To clarify, the number of vehicles taken off the road from the Cash for Clunkers program is not in any way related to the 517 people who took a survey on our site. They are two completely different issues. We added that information to support government data.
    The first $1 billion of the Cash for Clunkers program DID remove 250,000 cars from the road, vehicles that will not go back into supply. The second cash infusion will likely remove an additional 500,000 vehicles, for a total of 750,000 used cars being removed from the market. That reduction in supply has already driven used-vehicle values up significantly in the last few weeks alone. Dealers 'are' heading to auction and stocking up on used cars, as that is where they make the majority of their money. You are right in saying that consumers may not want used vehicles in the future leaving dealers with a glut and the possibility of the bottom dropping out on those used-vehicle values in a few months time - causing the bubble to burst. It is a hypothesis, but one we are already seeing come to fruition.
    I hope that clears things up.
    Robyn Eckard
    Director of Public Relations
    Kelley Blue Book

  • Logic? Posted: 8/6/2009 6:33pm PDT

    "The 750,000 used cars that could be pulled off the road"
    But at the same time the same amount of potential used car shoppers is taken off he market because they've just purchased a new car/truck and they would not need to shop again for a long while.