The Cash for Clunkers program being considered by Congress for inclusion in the economic stimulus package is really a wolf in sheep’s clothing, according to the Automotive Aftermarket Industry Association. The Cash for Clunkers program would earmark federal funds for car owners to trade-in their sport utility vehicles in exchange for vouchers to be used to obtain newer, more fuel efficient vehicles. On the surface the program may sound reasonable, but its consequences will create issues for those not fortunate enough to afford the cost of a new vehicle and would be a waste of taxpayer dollars.

“The Cash for Clunkers program has unintended consequences that are not currently being considered by Congress,” said Aaron Lowe, vice president of government affairs for the Automotive Aftermarket Industry Association. “Those seeking a ‘quick fix’ have failed to consider the impact of the program on lower and fixed income families as well as charities. By taking vehicles off the road that might be sold as used, the program will raise the price for all used vehicles, thus impacting those on limited income that cannot afford new vehicles. Further, since the parts on those vehicles that are scrapped could be sold as used or reconditioned, the program will cause an increase in repair prices for consumers.”

Congress and states have considered Cash for Clunkers proposals in the past and in many cases have decided against them. Many legislators have come to realize the unintended consequences of this program and that they are not a cost effective use of government money.

“Providing incentives for individuals to purchase fuel efficient vehicles or to have their current vehicle maintained would be a better use of federal money,” continued Lowe. “Cash for Clunkers programs might look good on paper, but in reality they are a bad idea and should be rejected by Congress.”

Interested parties can send an e-mail in opposition to the Cash for Clunkers program to the Speaker of the House, the Senate Majority Leader and their congressional representatives by visiting www.fightcashforclunkers.org and clicking on "Take Action."