Previous presidents issued a national mandate in the past to help boost the economy in unusual ways. One of those ways was a government-driven "cash for clunkers" program, which gave extra business funds to car dealerships for buying up junk cars. The junk cars had to be really old, producing a ton of air pollution and causing a lot of environmental problems just existing. The program was very successful, and many people brought their old vehicles in to be sold for scrap. In return, the customers got an added bonus of major discounts off of a new vehicle of their choice.
The government backing is no longer there, but many used car dealerships often promote a "cash for clunkers" sale. Is this a passe thing, a marketing strategy, or is it here to stay? The following information will help you decide for yourself what these sales are really about.
It Is Marketing
Yes, it is marketing, to be sure, but it is an excellent marketing tool. Offering excellent deals on used cars with low emissions and a longer running life while getting rid of older cars has always been an excellent marketing strategy. What consumers do not realize is that many of their old cars can be turned into parts for sale, or recycled for a profit, which helps used car dealerships regain some of the money they lose by offering a good deal on another car. As far as marketing goes, it is a win-win.
It Is Only Passe in Terms of Being Backed by the Government
Such a car sale and deal is really only passe in terms of being backed by the government. There are no government programs or funding on the books right now for an actual "cash for clunkers" program, but that does not mean that dealerships cannot use the phrase for marketing purposes. Should there ever be another shortage of recycled metals needed for manufacturing, a recession that needs an economic boost, and car industries needing help from the government, then you might expect the government to sponsor the program again.
It Is Not Here to Stay
If a used car dealership is sponsoring and promoting a "cash for clunkers" sale, the sale is not here to stay. It is a limited time offer sponsored only by that particular dealership. You should take advantage of it because you can get a nice new or used car for a lot less.