Who’s For and Against Cash For Clunkers

As the CARS bill – also known as Cash for Clunkers – gains momentum, the fans and the critics are identifying themselves. Here’s a handy score card for who you’ll see on which side of the aisle…

But first, an update: Compromise is ruling the day with Democratic lawmakers coming to consensus on the key issues of whether cars need to be made in the USA to qualify for vouchers (lawmakers from automotive states are doing most of the conceding here, and it seems made in the USA won’t be a huge part of the compromise bill), and how fuel efficient the purchased automobile needs to be (The environmental lawmakers are ceding on this one, agreeing that the efficiency standards can be the Governments CAFÉ standards – lighter than those first proposed the green-oriented politicos.)

Who’s Opposed and Who’s For It?

Opposed:

  • The Automotive Affiliate Market. This group says that the bills’ requirements to scrap cars will result in parts that are usually refurbished being taken out of the market. They also say the bill won’t help the environment – people will turn in third cars that they aren’t driving anyway.

For:

  • President Obama. Estimates that the bill will drive $25 Billion in economic activity are key to the Administration’s promise to use stimulus dollars to relieve auto makers.
  • Car Dealers – even though there’s some concern about the impact that the bill will have on valuations of used cars. (Will every car over 8 plus years suddenly be assumed only to have values that are represented by the amount of the vouchers?

For – but only IF….

  • CarMax.  The large chain of used car dealerships argues that used car purchases need to be eligible for vouchers.

We’ll continue keeping score as the For’s and Against start lining up