ALERT: Federal “Cash for Clunkers” Program Threatens Your Hobby
By Daniel at 5 January, 2009, 6:31 pm
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Some Washington lawmakers are hoping to create a new nationwide scrappage program which would give U.S. tax dollars to consumers who turn-in older cars to have them scrapped.
Summit Racing Equipment and the more than 6,800 member companies of SEMA (Specialty Equipment Market Association) are urging lawmakers to have this potential new program scrapped instead.
The new scrappage program, dubbed “Cash for Clunkers,” would be part of a new economic stimulus package to help create jobs and is specifically designed to spur new car sales. The stimulus package is being drafted right now, and House Speaker Nancy Pelosi (D-CA) wants to introduce the bill on January 6, and have it approved by Congress by January 20, so that incoming President Barack Obama can sign it into law immediately. Here’s why the scrappage program should not be included in the stimulus package:
• Owners who turn in vehicles for crushing would receive a “minimal” payment to purchase a new car.
• Since many of these cars are sitting in garages or storage, the program is a misguided attempt to claim the country’s air quality or fleet fuel mileage is being improved.
• The program would deny small business in the specialty automotive industry the availability of older cars necessary to develop new products and services.
• “Cash for Clunkers” would risk the destruction of classic, historic, and special-interest vehicles.
• “Cash for Clunkers” would reduce the availability of affordable transportation and repair parts used by low-income drivers.
• The program ignores better policy options–repair and upgrade is a win-win for consumers, dealers, manufacturers, and repair shops.
• The program would reduce the amount of parts and parts-cars available for repair, restoration, and customization projects.
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