“It wouldn’t surprise me if there is a consumer backlash once car owners realize that ‘Cash for Clunkers’ is nothing more than a clever slogan for a program to spend $1 billion of our tax dollars to fund a government subsidized vehicle trade-in to help new car dealers sell cars,” said Kathleen Schmatz, AAIA president and CEO. “Consumers will soon learn that they are simply trading in their vehicle and will still have to jump through all of the hoops to qualify for and purchase a new vehicle.”

The much heralded fuel efficiency and environmental benefits of purchasing a new vehicle could easily be achieved through better maintenance of an existing vehicle or trading up to a newer usedvehicle, according to AAIA. Any savings from improved miles per gallon will be lost from the costs involved in destroying and disposing of the “clunkers.”

AAIA has strongly opposed “Cashfor Clunkers” that prematurely destroys vehicles and their valuable parts and components. “Destroying vehicles with many more years of life denies consumers more affordable used vehicles and pulls vehicles from the aftermarket supply chain,” Schmatz said.

The Consumer Allowance RebateSystem, the official name for “Cash for Clunkers,” offers vouchers up to $4,500 to new car dealerships for consumers who trade-in their vehicle for a new, more fuel-efficient vehicle.