Has 'Cash for Clunkers' Returned?

Has ‘Cash for Clunkers’ Returned?

ASA is asking auto repairers to send a letter urging their U.S. congressmen and senators to oppose the program in the next phase of COVID-19 stimulus legislation.

The Automotive Service Association (ASA) is asking auto repairers to send a letter urging their U.S. congressmen and senators to oppose a Cash for Clunkers program in the next phase of COVID-19 stimulus legislation.

The outbreak of the COVID19 virus is widespread and has impacted automotive repairers nationwide. Vehicle repair facilities were declared “essential services” in all 50 states, however, ASA says it has come to the association’s attention that as automotive repairers are suffering economically, at least two auto manufacturers have floated the idea of including a Cash for Clunkers program in the next COVID-19 stimulus legislation in order to boost vehicle sales. This fourth stimulus legislation could occur as early as this month.

The Cash for Clunkers program was initially established under the Car Allowance Rebate System (CARS) Act during the Obama Administration. The program paid the owners of older vehicles as much as $4,500 to help stimulate the economy and reduce emissions in the summer of 2009. During this short period of time, approximately 700,000 post-warranty vehicles were taken off U.S. highways and out of independent repair shops, according to ASA’s data. 

ASA has opposed the Cash for Clunkers program since it was first introduced in several states. The most recent federal Cash for Clunkers program lacked a repair option, which hurt lower income vehicle owners who found themselves pressed financially in the purchase of a new vehicle with limited federal funds provided from the sale of their older vehicle.

Independent repair shops have more than 70 percent of post-warranty vehicle owners as their customers. The Cash for Clunkers program hurt many small businesses across the U.S. by taking post-warranty vehicles out of independent repair shops and destroying these vehicles.

“The last administration ignored that by helping one segment of the auto industry with a Cash for Clunkers program, you were also harming the automotive aftermarket,” ASA Washington, D.C. representative Bob Redding said. “The Paycheck Protection Program (PPP) and other federal government efforts have been very helpful to automotive repair shops during these difficult times. We hope Congress will take a pass on including a job killing, Cash for Clunker program in the next COVID-19 stimulus package.”

ASA is urging automotive repairers to send a letter to their congressmen and senators to consider a fourth COVID-19 stimulus bill that will reinvigorate the entire automotive industry and establish policies that take into account the jobs and economic impact of independent automotive repair facilities and the aftermarket.

CLICK HERE to send a letter.

You May Also Like

Continental Releases 67 New Part Numbers

Twenty-two new import part numbers, as well as 39 new pulley and tensioner part numbers, are immediately available.

Continental announced a continued development of its import line of products with the addition of 22 new part numbers, as well as the expansion of its metals program, including 39 new pulley and tensioner part numbers. The new product line extensions are immediately available, Continental said.

39 Tensioners and Pulleys

Standard Motor Products Introduces 268 New Numbers

The release provides new coverage in 75 product categories and 80 part numbers for 2023 and 2024 model-year vehicles, SMP said.

BCA Bearings Unveils 2024 Endless Summer Promotion

The Endless Summer promotion runs from May 1 through June 30, 2024.

Clarios to Supply High-Performance AGM Battery to Major OEM

It offers up to 80% reduction in CO2 emissions over traditional AGM batteries, in many cases, Clarios said.

Philips Announces GoPure GP5212 Automotive Air Purifier

It uses a 3-layer filter to deliver cleaner, healthier, fresher air on the go, Lumileds said.

Other Posts

Snap-on Announces Latest Software Release

The latest software includes new coverage and guided component tests and features.

AACF Launches 65th Anniversary Fundraising Initiative

The campaign aims to raise $65,000 through 1,000 donations of $65 each.

BendPak Founder Don Henthorn Passes Away

Grew company from small machine shop to global leader in car lifts and garage equipment.

ASE Practice Tests Available Online

You can get a good idea of what to expect by adding the official ASE practice tests to your study plans.