Concerns About Cash for Clunkers Program

While the Automotive Aftermarket Industry Association 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.

AAIA strongly opposes the use of Cash for Clunkers programs, which threaten jobs in the independent aftermarket industry by removing repair opportunities for vehicles and raising the cost of used cars and parts.

“It seems arrogant to destroy perfectly good vehicles with many more years of useful life just to entice consumers to purchase a car that they might not be able to afford,” says Kathleen Schmatz, AAIA president and CEO. “This is hauntingly reminiscent to the home mortgage debacle when consumers purchased homes they could not afford.”

Cash for Clunkers would prematurely destroy vehicles and their valuable parts and components, denying more affordable used vehicles and parts 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.


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