Monday, October 19, 2009

Consumers Willing to Spend More on Autos

Some good news is starting to leak out as we head into the Fall selling season. Kelley Blue Book ( released a Market Intelligence Study earlier this month on the automotive market post clunkers. In the study they found the amount consumers are willing to spend on new vehicles actually increased after the national incentive program funded by the government. In August 2009 consumers reported they would spend $25,600 on a new vehicle, a number that has increased $1,671 to $27,271 in late September. The report also noted that customers are saying they are not waiting on incentives to purchase. This may be good news as many dealers feared Clunkers would have a similar consequences to the initial 0% offerings early in the 2000's or Employee Pricing later on. After these programs ended it seemed the public just started waiting until the next big discount from car manufacturers. I can report on the Diva front that new car mailers are up. Currently the best sales results are coming from Buyback letters sent to dealer databases or year/make owner lists we supply. Let us know if you'd like info on these. 317.644.5729,

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