Congress is again considering a “Cash for Clunkers” bill that would offer
assistance in buying new, more fuel-efficient vehicles. Earlier this
year, funding for the Cash for Clunkers program was removed from the
economic stimulus bill.

H.B. 1550, the Consumer Assistance to Recycle and Save (CARS) Act, was recently introduced by Rep. Betty Sutton (D-OH).

The CARS Act would provide $3,000 to $7,500 vouchers to owners of
vehicles that are at least eight years old to purchase more
fuel-efficient vehicles. The vouchers are based on miles-per-gallon,
and vary depending on where they were built.

Cars built in the U.S. must get at least 27 mpg on the highway, while
those built in Canada or Mexico must get at least 30 mpg to qualify for
the program.

The Automotive Service Association (ASA) supports the legislation,
provided the program includes a vehicle repair option for consumers,
state administration of the program, participation tied to vehicle
emissions and repair allowances that would address emissions-related
repairs.

The Automotive Aftermarket Industry Association (AAIA) opposes bill,
which it says threatens jobs in the independent aftermarket industry by
removing repair opportunities for vehicles and raising the cost of used
cars and parts.

National Auto Body Council Executive Director Chuck Sulkala urged
collision repairers to support such legislation earlier this year.
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