The Car Allowance Rebate System (CARS), also known as "cash for clunkers", was a $3 billion U.S. federal program intended to provide incentives to U.S. residents to purchase a new, more fuel-efficient vehicle when trading in a less fuel-efficient vehicle. The program was promoted as providing stimulus to the economy by boosting auto sales, while putting safer, cleaner, and more fuel-efficient vehicles on the roadways.

The Coronavirus also known as Covid-19 has brought the world to a screeching halt, leaving no industry untouched. Unemployment rates are skyrocketing, and Americans are struggling to make ends meet. Today’s economy is nearing an eerily similar downturn like 2008.

Last introduced in 2009, the “Cash for Clunkers” incentive, otherwise known as “Car Allowance Rebate System (CARS)” was implemented in an effort to boost the economy, increase jobs, and put safer and more fuel-efficient cars on the road. The government offered incentives for consumers to turn in their old cars to buy newer, safer, and more fuel-efficient vehicles, thereby boosting the economy and cleaning up the air.

The auto industry has, and always will be, a huge factor in a healthy U.S. economy – 17 million vehicles are sold every year, and the auto industry in America employs roughly 17.9 million people. According to reports, today’s auto sales numbers are on the same trend as they were before the 2008 recession. It’s time for the federal government to step in and get ahead of the curve this time.

THIS FEDERAL PROGRAM HAS TO HAPPEN AGAIN!

We are calling on Congress to implement a reinvented and more sustainable “Cash for Clunkers” program immediately. The first time around cash for clunkers ran out of funds quicker than expected. The initial bill enacted only $1 billion dollars in funds. That dried up very quickly. 

A $540 billion dollar a year revenue stream needs more than a mere $3 billion. It needs a monumental number. The number this time around needs to be upwards of $20 billion dollars. Again, that number is $20 billion dollars. This money needs to be invested as a credit for buyers to purchase newer safer and more efficient vehicles, as well as invest in creating cutting edge technology in these vehicles.

Think about all the cars on the road now with Uber and Lyft. These cars need to be safer for riders and more fuel efficient for drivers. 

As far as new technology and safety goes. We so often turn to China, Japan, Germany or South Korea for this technology. Starting today, we need to spark the trend. We need to be on the forefront of fixing emissions into the air we breathe and make our roads safer.

Every driver deserves the opportunity and ability to acquire such a newer safer vehicle.