Cash For Clunkers Legislation

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This came to me this AM from Summit Racing. This should be of interest to anyone who cares about old cars.
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Dear Fellow Enthusiast,

As a SEMA Member Company, we have received an Urgent Legislative Action Alert from the association. You may be interested in this legislative alert and the possible impact it will have on your hobby.

The Specialty Equipment Market Association (SEMA) is a non-profit trade association composed of more than 6,800 member companies involved in all aspects of the automotive industry, from manufacturers to car clubs and race teams.

The SEMA Action Network (SAN) protects your hobby from unfair or unnecessary legislation on national and local levels. Through distribution of information and the collective voice of automotive enthusiasts and businesses, the SEMA Action Network has successfully impacted legislation concerning scrappage laws, equipment standards, registration classifications, emissions regulations, and more.

The following information is directly from SEMA. If you would like to contact the lawmaker, follow the instructions in the alert.


Thank you for your time,
Your Friends at Summit Racing Equipment

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Washington lawmakers are drafting a large economic stimulus package to help create jobs and rebuild infrastructure. They want to include a nationwide scrappage program which would give U.S. tax dollars to consumers who turn-in older cars to have them crushed, as a misguided attempt to spur new car sales. The lawmakers need to scrap this idea.

The stimulus package is being drafted right now. 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 President Obama can sign it into law after he is inaugurated.

Contact House Speaker Nancy Pelosi IMMEDIATELY To Oppose Cash for Clunkers!
Call: 202-225-0100
Click here to send an electronic message: http://speaker.house.gov/contact/

Talking Points
Feel free to use any of the statements below as a starting point for your message to Speaker Pelosi.

  • I am [calling/writing] to urge lawmakers not to include a “Cash for Clunkers” provision in the economic stimulus bill. Owners who turn in vehicles for crushing would receive a "minimal" payment to purchase a new car. This is a misguided attempt to spur car sales and claim that the country’s air quality or fleet fuel mileage is being improved.
  • I work for [company name] located in [city and state]. My company is part of the specialty automotive industry, an industry which enables consumers to enhance their vehicle’s appearance, performance, comfort, convenience and safety. “Cash for Clunkers” programs deny our small businesses the availability of older cars necessary to develop and market their products and services. The programs will hurt my company and our customers.
  • “Cash for Clunkers” programs threaten enthusiasts nationwide with the loss of valuable parts and parts-cars for repair, restoration, and customization projects. The programs also risk destroying classic, historic and special-interest vehicles, our American heritage.
  • Cars turned in for scrappage often barely run, or are rarely-driven second or third vehicles that have a minimal impact on overall fuel economy or emissions.
  • “Cash for Clunkers” programs will reduce the availability of affordable transportation and repair parts used by low-income drivers. It will also compete with the Salvation Army, the Purple Heart and other charities that rely on vehicle donations to raise money.
  • “Cash for Clunkers” ignores better policy options. If Congress wants to act, support for repair and upgrade is a better choice and a win-win for consumers, dealers, manufacturers and repair shops. Significant emissions and fuel economy improvements can be achieved in older vehicles through relatively simple and inexpensive means: repaired/replaced exhaust systems, tune-ups, etc.
  • We hope we can count on you to reject “Cash for Clunkers.” Thank you for your consideration on this very important matter.
If you choose to send a message to Speaker Pelosi, please send a copy of your message to SEMA also:
E-mail: [email protected]
Fax: 202/783-6024

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Steve Briscoe

Lifetime Supporter
My impression is there are lots of guys in every community that make their living off of "clunkers". It would be interesting to see how someone from the beltway who never had a "clunker" would define such a car.
 
Who would a proposal like this actually help? People aren't buying new cars because they can't afford them or get financing for them, not because there are so many wonderful used cars to buy instead. This would really hurt the auto parts stores and auto repair guys and still not help the car manufacturers. This seems like a terrible idea all the way around.
 

Pete McCluskey.

Lifetime Supporter
Of course it is a terrible idea, most knee jerk reactions dreamed up by politicians and their cronies are. We suffer from the same syndrome in OZ.
 

Doug S.

The protoplasm may be 72, but the spirit is 32!
Lifetime Supporter
Texas has a sort of program like this for the disadvantaged who cannot afford to fix up their cars adequately to pass an emissions test. If the person has sufficiently low income they can agree to have their "clunker" towed away to a salvage yard and then they get a sizable financial windfall. IIRC, the amount may be between $1,500 and $2,000. They must spend the $$ on a car that is currently able to pass an inspection and I believe they must buy the car from specific dealers who are willing to accept the voucher.

The problem with this is that the cars usually get hauled to a "Pick-your-part" type of self-service salvage yard, who hold onto them for a short period of time and when the good parts are gone they crush them for weight.

I had a friend who managed to get a car under this program......problem is, she's STILL too poor to afford appropriate maintenance, so I suspect that this most recent acquisition will soon be unable to pass an inspection (there's more to it than that, the car must be inspected by a shop that informs the owner of the parts needed to bring the car into compliance and the person must spend (IIRC) $400 in attempts to get the car to pass the inspection on the second try, but in the case of my friend it involved a new carb.....for her Olds station wagon that was in excess of $500, so she qualified. I think a rebuilt carb might have fixed it for a while, but the writing was on the wall......).

Doug
 

Neal

Lifetime Supporter
Another assnine use of "economic stimulus" funds. Your tax dollars will fund this. Pelosi and her crew need to pull their heads out.
 

Doug S.

The protoplasm may be 72, but the spirit is 32!
Lifetime Supporter
I assume you're not referring to the circumstances I described above, just to the general concept here, but I can assure you that in the instance I outlined above the lady of whom I spoke was unable to get to work without her car.....without a job she would most assuredly have become another monthly welfare burden. IMHO the one time buyout offer is certainly a better use for my tax money than the multitude of monthly welfare payments available for NOT WORKING--rent subsidies, food stamps, and on and on and on!! There was no requirement that the car be a new automobile, in her case she bought a used Oldsmobile.

Keep in mind that this was NOT a "Cash for clunkers" offer, it was a voucher to be used toward the purchase of a different car. No purchase, no loss to the public coffers. She could still have bought another "clunker" without the voucher, which might have gotten her to the next annual inspection.....not exactly the best of options, IMHO. To my knowledge her "voucher" car has passed the annual inspection for about 4 years, maybe more.

Doug
 
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