One industry group says that car buyers who thought the Cash for Clunkers program would help make new cars more affordable are likely to find that they’re better off with used cars in New Jersey.
The program offers vouchers of up to $4,500 for owners with low fuel mileage who have owned their vehicle for at least a year and then trade it in for a more fuel efficient new car.
It would be just as easy to trade up to a newer used car or through better maintenance of existing cars, argues the Automotive Aftermarket Industry Association.
“It wouldn’t surprise me if there is a consumer backlash once car owners realize that ‘Cash for Clunkers’ is nothing more than a … program to fund a government subsidized vehicle trade-in to help new car dealers sell cars,” said Kathleen Schmatz, the association’s president and CEO. “Consumers will soon learn that they are simply trading in their vehicle and will still have to jump through all of the hoops to qualify for and purchase a new vehicle.”