“Cash for Clunkers” Deal is Peanuts Compared to
Good Ol’ Vehicle Maintenance
BETHESDA, MD — August 7, 2009 — Routine vehicle maintenance for an entire year costs a consumer less than a single monthly new car payment and would be significantly more successful in reducing gasoline use and pollution than the “Cash for Clunkers” program, according to the Automotive Aftermarket Industry Association (AAIA). Vehicle maintenance would save consumers $30 billion in gasoline a year vs. spending $3 billion in taxpayer dollars to buy new cars.
While the “Cash for Clunkers” program is estimated to save 72 million gallons of gasoline each year, simple vehicle maintenance would save more than 12 billion gallons of gasoline a year (equivalent to all of the gasoline used in Illinois, Michigan and Connecticut in one year). Additionally, vehicle maintenance does not require a dime of taxpayer money and doesn’t require destroying perfectly good used vehicles that could be sold or donated to people who cannot afford a new car, reports AAIA.
“Understandably the ‘Cash for Clunkers’ program is wildly popular among new car dealers, car makers and those consumers who have the ability to buy a new vehicle. However, the majority of Americans cannot afford a new car payment today, but they probably can afford to trade up to a newer used vehicle or make their current vehicle more fuel-efficient,” said Kathleen Schmatz, AAIA president and CEO.
“Doesn’t it make more sense to give a tax credit or other incentive to the majority of Americans to improve the fuel efficiency, safety and dependability of their current vehicle, rather than taking their tax dollars to help a small minority of consumers and pump up new car dealer profits?” said Schmatz.
AAIA opposes the “Cash for Clunkers” program for the following reasons:
- The program destroys many vehicles that are not even close to being defined as “clunkers” with years of remaining life and use.
- Destroyed vehicles are removed from the market forever, depriving consumers who seek to purchase a used vehicle or charities in need of donated vehicles.
- It hurts the aftermarket companies that manufacture, distribute, sell and install vehicle parts on used vehicles, and those who rebuild/remanufacture vehicle parts.
- Resources and energy use is multiplied when a vehicle is destroyed and a new one is built to replace it.
- The majority of vehicles being traded in are domestic, and the majority of new vehicles being sold are foreign.
- The program entices consumers to purchase a new car that they might not be able to afford and certainly to go further in debt, reminiscent to the sub-prime home mortgage debacle.
- The program is regressive since only those at higher income levels who can afford to purchase a new car will qualify for the $4,500 voucher, while destroying used cars that could be purchased by lower income families, most in need of assistance in obtaining transportation
Consumers interested in learning exactly how vehicle maintenance will save money should visit the Car Care Council Web site at www.carcare.org.
AAIA is a Bethesda, Md.-based association whose more than 23,000 member and affiliates manufacture, distribute and sell motor vehicle parts, accessories, service, tool, equipment, materials and supplies. Through its membership, AAIA represents more than 100,000 repair shops, parts stores and distribution outlets.
AAIA Predicts Consumer Backlash on “Cash for Clunkers”
BETHESDA, MD — July 27, 2009 — As new car dealerships ramp up advertising to attract consumers to the showroom using “Cash for Clunkers” as an incentive, 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 $1 billion of our tax dollars to fund a government subsidized vehicle trade-in to help new car dealers sell cars,” said Kathleen Schmatz, 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.”
“Cash for Clunkers” is an Environmental Clunker
“Clunker” of a Bill Would Increase Pollution, Overload Landfills
BETHESDA, MD — May 20, 2009 — As “Cash for Clunkers” legislation moves closer to becoming law, the unintended negative consequences of this radical bill should be of concern to all Americans. The legislation, which in theory is supposed to be environmentally-friendly, would actually increase the amount of pollution generated for years to come.
“‘Cash for Clunkers’ is touted as protecting the environment by taking older vehicles off the road and replacing them with new, more fuel efficient vehicles. The reality is that these scrapped vehicles will be heading to landfills. It’s ironic that a proposal designed to reduce pollution will actually further damage the environment,” said Aaron Lowe, vice president of government affairs for the Automotive Aftermarket Industry Association (AAIA). “While the true intention of this legislation is not to protect the environment but to financially stimulate the automobile industry in the short term, the hidden costs of this bill could cause environmental havoc indefinitely.” Read More...
Engine Repower Council Opposes “Cash for Clunkers” Program
BETHESDA, MD — May 19, 2009 — The Engine Repower Council strongly opposes the federal “Cash for Clunkers” program that is part of the current economic stimulus package being considered by Congress.
The Cash for Clunkers program would earmark federal funds for car owners to trade-in their older vehicles in exchange for vouchers to be used to obtain newer, more fuel efficient vehicles. These programs are of concern to the vehicle aftermarket since vehicles are scrapped that could be more cost effectively repaired, increasing the country's carbon footprint and reducing the availability of parts for rebuilders. Read More...
Professional engine rebuilding may offer a simpler,
lower cost way to cut greenhouse gas emissions
May 8, 2009 — Several plans are currently being debated in the public forum in an attempt to find a way to reduce greenhouse gas emissions. Most of these concepts have been debated for years—setting higher mileage standards, implementing advanced technologies, and passing “cash for clunkers” legislation.
The head of one of the country's largest engine parts distribution groups says one simple, quicker and less costly idea is starting to gain more attention—professionally rebuilding worn-out and inefficient engines of the millions of older cars and trucks now on the road. Read More...
“Cash for Clunkers” Limits Access to Affordable Used Vehicles for Low
and Middle Income Families
BETHESDA, MD — April 15, 2009 — Cash for Clunkers would prematurely destroy vehicles and their valuable parts and components, denying more affordable used vehicles to millions of low and middle income families who cannot afford to purchase a new car even with a $3,000 to $5,000 government voucher.
“For families that cannot afford the price of a new vehicle even with a government voucher, the Cash for Clunkers program would limit their access to affordable transportation, a must for most working Americans,” said Aaron Lowe, vice president of government affairs for the Automotive Aftermarket Industry Association. “Cash for Clunkers may sound good at first, but when you take a closer look, it is clear that the Cash for Clunkers proposal will negatively impact car owners, wasting billions of taxpayer dollars.” Read More...
Administration Cash for Clunkers Proposal Bad for
Consumers & Environment
Trade Association Cautions Against Creating Another Home Mortgage Debacle
BETHESDA, MD — March 30, 2009 — While the Automotive Aftermarket Industry Association (AAIA) supports efforts by the Obama administration to help stabilize U.S. based vehicle manufacturers, the association cautions that the “Cash for Clunkers” proposal will harm the environment, negatively impact car owners, waste billions of taxpayer dollars and hurt the hundreds of thousands of vehicle service and repair businesses in America. Read More...
Opposition to “Cash for Clunkers” Programs to be Major Issue for 2009 Aftermarket Legislative Summit
BETHESDA, MD — February 19, 2009 — The Automotive Aftermarket Industry Association (AAIA) has added the “Cash for Clunkers” issue to the agenda for the Aftermarket Legislative Summit, scheduled for March 11-12, in Washington, D.C.
The “Cash for Clunkers” program that was removed from the Economic Stimulus package passed by Congress last week would have appropriated $16 billion in federal funds for car owners to trade in their sport utility vehicles in exchange for vouchers to be used for the purchase of a newer, more fuel-efficient vehicle. Although it was removed, congressional supporters have vowed to include the provision in another legislative vehicle, likely an energy bill that is slated for debate this spring. Sen. Tom Harkin (D-Iowa), who introduced S.AMDT.338 to the stimulus, and Sen. Dianne Feinstein (D-Calif.), who wrote the “Accelerated Retirement of Inefficient Vehicles Act” (S. 247), have been clear in their intent to obtain enactment of such a program in the 111th Congress. Read More...
“Cash for Clunkers” Amendment Withdrawn from Senate Stimulus Bill
Victory for Consumers and Small Business Owners
BETHESDA, MD — February 6, 2009 — The “Cash for Clunkers” amendment to the United States Senate stimulus package was withdrawn from the bill on Thursday. The Cash for Clunkers program would have earmarked federal funds for car owners to trade-in their sport utility vehicles in exchange for vouchers to be used to obtain newer, more fuel efficient vehicles. Read More...
“Cash for Clunkers” Program: A Wolf in Sheep’s Clothing
Plan to Scrap Older Vehicles Will Hurt Many Consumers
The Cash for Clunkers program being considered by Congress for inclusion in the economic stimulus package is really a wolf in sheep’s clothing, according Automotive Aftermarket Industry Association. The Cash for Clunkers program would earmark federal funds for car owners to trade-in their sport utility vehicles in exchange for vouchers to be used to obtain newer, more fuel efficient vehicles. On the surface the program may sound reasonable, but its consequences will create issues for those not fortunate enough to afford the cost of a new vehicle and would be a waste of taxpayer dollars. Read More...