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July 23, 2009

AAIA predicts 'Cash for Clunkers backlash'

The Automotive Aftermarket Industry Association (AAIA) predicts a "consumer backlash" against the "Cash for Clunkers" program.

New car dealerships are ramping up their "advertising efforts to attract customers to the showroom using 'Cash for Clunkers' as an incentive," say AAIA officials, who characterize the progam as "nothing more than a clever slogan for a program to spend $1 billion of our tax dollars to find a government-subsidized vehicle trade-in to help new car dealers sell cars."

"Consumers will soon learn that they are simply trading in their vehicles and will still have to jump through all of the hoops to qualify for and purchase a new vehicle," says AAIA CEO and President Kathleen Schmatz.

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  1. j | July 26, 2009 at 09:44PM
    You don't need a voucher, dealers will apply a credit at purchase


  2. Steve | July 27, 2009 at 03:56PM
    Our government has already committed $11 TRILLION (not billion) to all of the bailouts, TARP-type rescue programs, and fiscal stimulus. What exactly makes the AAIA believe that the public will exercise a "consumer backlash" against this ill-conceived, unnecessary, inneffective little $1 billion government program? No one seems overly concerned after trillions of our tax dollars flowed directly to Wall Street to rescue millionaire bankers whose bets had gone bad, so why would they complain about this drop in the bucket? The average consumer gets the benefit (not the bankers) so they are more likely to support this plan than not. We have several customers that are turning in $1500 pieces of junk and getting $3500-4500 for them and they sure 'ain't complaining - especially since many dealers in battered SoCal are discounting the vehicles and then matching the credit to boot!

  3. joe | July 28, 2009 at 06:06AM
    It's unfortunate the AAIA is so negitive, this plan has a real chance to create "true stimulas", maybe small compared to the billions wasted on government budget bailouts which created no stimulas.

    Hopefully the dollars will end up supporting American companies and jobs....the Detroit and midwest really needs the boost.

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