Cash for Clunkers May Not Help Used Car Dealerships
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Updated: 1:44 PM Jun 26, 2009
Cash for Clunkers May Not Help Used Car Dealerships
Staunton, Va.
President Barack Obama has signed off on a law that hopes to spark the auto industry, but some used car dealerships in the Valley say it's not necessarily good news for them.
Posted: 4:34 PM Jun 25, 2009
Reporter: Philip Townsend
Email Address: ptownsend@whsv.com
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President Barack Obama has signed off on a law that hopes to spark the auto industry, but some used car dealerships in the Valley say it's not necessarily good news for them.

Andrew Wiley at Consumers Auto Warehouse in Staunton says the used-car industry hasn't escaped slow times in the economy.

He says, "Used vehicles are a little better off than new cars are for sure, but it's been a struggle for us as well."

Obama signed off on the Car Allowance Rebate System, or CARS, Wednesday night that plans to ignite new car sales.

Used car owners can trade in their old cars and get a better rate on a new, more fuel efficient set of wheels. They're incentives that could affect used dealers like Wiley.

Wiley adds, "It's not going to do us a whole lot of good. Frankly, I'm not convinced it's going to do a whole lot of good on the new car side either."

He says the plan has too many restrictions.

"In the grand scheme of things, I don't think it's going to make a big difference," comments Wiley.

To qualify for the incentive, your car must have been manufactured less than 25 years before the date you trade it in and have a fuel economy of 18 miles to the gallon or less.

Wiley says, "You're talking about a fairly old car. Is that really a new car buyer? That's my question."

While it's one of many efforts the Obama Administration is taking to turn around the industry, Wiley says he'd rather see it be left alone.

"I'm not worried about it. I don't think the government needs to be involved," says Wiley. "The market will take care of itself."

The National Highway Traffic Safety Administration is still working out the program specifics. It could go into effect as soon as August 1.


Latest Comments

Posted by: jim Location: oakpark on Jul 20, 2009 at 04:15 AM

For working trucks the rule is not based on the fuel efficieny. As long as it is manufactured before 2001 they all qualify but cannot be older than 25 years old. Jimhenry Blogger www.cashforclunkersfacts.info
Posted by: Jeannie Ball Location: DULUTH MN on Jul 18, 2009 at 12:34 PM

I think that is great that President Obama is doing something for us. He has done lots of good so far. What is wrong with all of you people that just have to find something bad about everything? He is doing a great job for what he walked in to.
Posted by: Barb Location: Ithaca on Jun 26, 2009 at 12:10 PM

Just wish I could could trade in my 1994 Pick up on a used truck 1 or 2 years old, but again they have made the rich richer and the poor poorer.
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