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ASA Urges Shops to Oppose New Cash for Clunkers Program

The Automotive Service Association (ASA) is urging its members to send a letter to their members of Congress urging them to oppose a Cash for Clunkers program in the next phase of COVID-19 stimulus legislation.

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As automotive repairers are suffering economically, some auto manufacturers have proposed reviving the Obama Administration’s Cash for Clunkers initiative, which paid the owners of older vehicles as much as $4,500 to help stimulate the economy in the summer of 2009. During this short period of time, approximately 700,000 post-warranty vehicles were taken off U.S. highways and out of independent repair shops.

Both the U.S. Government Accountability Office (GAO) and respected research institutions have raised questions about the effectiveness of the Cash for Clunkers program, which cost U.S. taxpayers almost $3 billion.

Recently, at least two auto manufacturers have floated the idea of a “Cash for Clunkers” program to be included in the next COVID-19 stimulus legislation in order to boost vehicle sales.

The Automotive Service Association (ASA) opposed Cash for Clunkers program when considered during the Obama Administration and encourages Congress to reject a new Cash for Clunkers program in the next COVID-19 stimulus package.

To take action and write a letter to your member of Congress, click here.

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