May 19 2009
Kelley Blue Book, the leading provider of new car and used car information, today announces the results of the latest Kelley Blue Book Market Intelligence survey of in-market new-car shoppers on kbb.com, detailing consumers' opinions on the 'cash-for-clunkers' proposal.
When provided specifics about the 'cash-for-clunkers' bill as it is currently proposed, 38 percent of in-market new-car shoppers said it would have no effect on their purchase timeframe because they do not have a vehicle to turn in that meets the parameters of the program. However, 13 percent of consumers say they would be highly motivated to purchase a new vehicle sooner due to 'cash-for-clunkers,' and an additional 26 percent want to learn more about the program, even if it would not affect their vehicle purchase timing.
"The latest Kelley Blue Book Market Intelligence data is quite telling, showing that most consumers will not change their purchase timeframe if a 'cash-for-clunkers,' bill passes, largely because their trade-in does not meet the program's requirements," said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book and kbb.com. "But since more than 10 percent say the program will motivate them to buy a new car sooner, it may result in an increase in new-car sales, and that could do nothing but help an industry in need of some upward impetus."
In addition, the Kelley Blue Book survey found only 36 percent of in-market new-car shoppers were aware of the 'cash-for-clunkers' proposal. Of those aware of the bill, 77 percent understood the current terms, namely that the government will provide between $2,000 and $4,500 vouchers to people who will swap out their older model vehicles with poor gas mileage for new, more fuel-efficient models.