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Aftermarket Associations Oppose 'Cash for Clunkers'

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May 13, 2020—The Auto Care Association (ACA), Tire Industry Association, Service Station Dealers of American and Allied Trades, the Automotive Oil Change Association, and the Automotive Service Association (ASA) oppose a type of "cash for clunkers" program, according to a press release.

“What we need now are forward-thinking, practical solutions that benefit Americans across the board, not questionable old programs proven to benefit only a select few businesses,” said Kristy Babb, Executive Director for the Automotive Oil Change Association, in the release. 

In 2009, during the Obama Administration, the Consumer Assistance Recycles and Save (CARS) program was implemented as a response to the 2008 recession. The goals of the program were to reinvigorate the automotive industry, improve fuel efficiency and cut carbon dioxide emissions. However, evidence suggests the program functioned as a boon to automakers alone. 

In a letter to Congressional leaders, the associations said the $3 billion program removed approximately 700,000 vehicles from independent repair shops. The cars were destroyed by the federal government after taxpayer dollars were spent up to $4,500 on each car.

The cash for clunkers program might benefit vehicle manufacturers but it does not deliver aid to small and medium-sized businesses that repair cars, according to the press release.

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