Alexandria, VA – The American International Automobile Dealers Association today applauded news that the House of Representatives has overwhelmingly passed a scrappage, or "Cash for Clunkers" bill. The bill, H.R. 2640 – the Consumer Assistance to Recycle and Save Act, was sponsored by Rep. Betty Sutton (D-Ohio). If it passes through the Senate, it will provide consumers with up to $4,500 for trading in an old vehicle for a new, more fuel efficient model.
"For months, while Congress has debated a scrappage program, consumers have postponed their automotive purchases," said AIADA President Cody Lusk. "However imperfect, if this bill clears the Senate, dealers can look forward to a true stimulus program that will incentivize customers to buy. International nameplate dealers view this legislation as a big step toward an industry-wide recovery."
Elsewhere, similar scrappage programs have seen great success, with countries such as Germany achieving a 28 percent increase in vehicles sales. To date, autos sales in the U.S. are down 36.5 percent from 2008.