• August 11, 2009

Interest in "Cash for Clunkers" is hitting the skids. Edmunds.com says the program, which launched July 27 and got $2 billion in extra funding on Aug. 7, is seeing weaker interest based on Edmunds' purchase intent data. The firm says interest peaked on July 29, but has since seen activity decline by 15%.

"The funding for the original program was very low in relation to the size of the auto market," said Michelle Krebs, senior analyst, in a release. "This created a gold rush-mentality where consumers hurried to take advantage before funding ran out. With additional funding now approved, there is no longer an urgency to participate in the program."

The Edmunds.com analysis was based on Internet shopping purchase intent data. It also showed that if current trends hold, purchase intent would be back to pre-"Cash for Clunkers" levels by Aug. 20.--Karl Greenberg