As new car dealerships promote "Cash for Clunkers" incentives to help boost sales, the Automotive Aftermarket Industry Association (AAIA) anticipates a consumer backlash once reality replaces the hype.
"It wouldn't surprise me if there is a consumer backlash once car owners realize that 'Cash for Clunkers' is nothing more than a clever slogan for a program to spend billions of our tax dollars to fund a government subsidized vehicle trade-in to help new car dealers sell cars," says Kathleen Smatz, AAIA president and CEO. "Consumers will soon learn that they are simply trading in their vehicle and will still have to jump through all of the hoops to qualify for and purchase a new vehicle."
The much heralded fuel efficiency and environmental benefits of purchasing a neew vehicle could easily be achieved through better maintenance of an existing vehicle or trading up to a newer used vehicle, according to AAIA. Any savings from improved miles per gallon will be lost from the costs involved in destroying and disposing of the "clunkers."
AAIA has strongly opposed "Cash for Clunkers" that prematurely destroys vehicles and their valuable parts and components. "Destroying vehicles with many more years of life denies consumers more affordable used vehicles and pulls vehicles from the aftermarket supply chain," Schmatz says.
The Consumer Allowance Rebate System, the official name for "Cash for Clunkers," offers vouchers up to $4,500 to new car dealerships for consumers who trade in their vehicles for a new, more fuel-efficient vehicle.
