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.
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.
One alternative solution would be for Congress to enhance the Motor Vehicle Inspection programs in all states in order to remove safe cars from the road.
