Cash for Clunkers: How it will play out

José Pinomesa, President
Oregon Independent Auto Dealers Association

Cash for Clunkers is now the Car Allowance Rebate System (CARS).  This government program assists you in purchasing a brand new, more fuel efficient vehicle than the one that you are trading in.  This became law on July 1, but will basically go into effect after the program has been more defined on or around July 23.  For the most part your old vehicle cannot be more than 25 years old.  Combined city and highway miles per gallon must be 18 or less.  The vehicle must have been in your name and insured for at least the last year.  The program will go until November 1 or until funds have been used up.  To find out more you can visit

This program will take these less fuel efficient vehicles off the road by sending them to the scrap yard to be destroyed.  In the end this will make used cars go up in value since there will be less of them around.  This is good for the seller but not so good for the buyer.  Those people that cannot afford a brand new car will have to end up paying more money which is not what you call fair.  This is a great bill for those environmentalists because it takes those old vehicles off the road.  Manufactures like it because it promotes the sale of new vehicles.

The used car dealer does not benefit much since this program does not apply to pre-owned vehicles.  Plus this program will make it harder for dealers that deal in budget cars and trucks to get vehicles since they will be going to the scrap yard instead.  Nothing is free and in the end it is the American taxpayer who will get to pay for this program.

This article was written by José Pinomesa who is the President of the Oregon Independent Auto Dealers Association in Salem and the owner of José Mesa Auto Wholesale, LLC in Portland.

Web Links: &

Thanks, José

Disclaimer: Articles featured on Oregon Report are the creation, responsibility and opinion of the authoring individual or organization which is featured at the top of every article.