South Florida car dealers hopeful about Obama's consumer incentives

The federal government wants to put the auto industry back on the road and consumers in the driver's seat — and now is even willing to make sure you keep that new car running, as long as you buy American.

President Barack Obama on Monday announced the government would back General Motors and Chrysler vehicle warranties. That ensures consumers will have major repairs covered if the companies go into bankruptcy.

The bailout plan was the latest in a string of federally backed incentives and proposals designed to restore customer confidence and steer buyers back into dealerships, where sales nationwide are down about 40 percent this year over last.

Will it work?

Some dealers and consumer experts are cautiously optimistic, with government and dealership perks arriving as some car shoppers realize they can't afford to hold onto their aging jalopies any longer. But for prospective car buyers shopping South Florida lots Monday, the Obama plan barely registered.

Chris McCarty, survey director for the University of Florida's Bureau of Economic and Business Research, predicted sales could increase in the year ahead because there is now "probably some pent-up demand out there."

"Some spending is discretionary but most people, especially in Florida, need a car," he said.

South Florida car dealers hopeful about Obama's consumer incentives - South Florida Sun-Sentinel - March 31, 2009