Cash for Clunk Mechanics, aftermarket already hurt?

Ive heard a lot of cash good for Clunk program in recent days. E 'essence of off-road vehicles for the benefit of the consumer for, potentially safer, and destroys the economy of dealers and car

In an immediate sense, looks good, right?

But many pages may be acid gradually, as the program officially known as the discount Car System (CARS) has now a second wind in the form of an extension of $ 2 billion. There I saw a series of reports in recent days, as the Reno Gazette-Journal, that the program takes the work of the machinery used by both dealers and auto repair, with its relationship with increased job undone.

The sharp reversal of a trend, which until recent years that if the auto repair business booming, especially for non-mechanical, many owners and repair, instead of buying a new car. But for many customers, the question of reparations, if they have the potential, in fact, a new car at a deep discount ..

Meanwhile, estimates that the program could inject up to $ 18 billion economy, while the finance, insurance, industry, suppliers and their suppliers.

It's an impressive number, but starts very small, considering the potential long-term mechanical and the market. According to the Wall Street Journal, there are about 164,000 independent shops across the country.

A small shop of two-man in Reno reported the loss of about $ 1400 in compensation, a few days. If this occurs throughout the country, that great economic importance, which must also be taken into account. Thus, l likely long-term economic impact on the mechanism could billion.

The WSJ also reports that the market for spare parts of cars as a whole could be one of the biggest losers, it \ 'sa $ 250 billion industry, $ 4.6 million, including non-mechanical

Automotive Service Association (ASA) has successfully completed a lobbying Congress to restore option, such as those currently in California, Texas and on the invoice.

Calculating the economic impact of the program is very complex Clunk. For example, salvage yards and distributors parties are provided to the process, first, even if it could lead to lower prices for the parts used for some very Clunk trade-ins. According to a spokesman for Spokane-audit report, citing a recycler parts, it is expected that "more convenient for decades."

It \ 's also the concern that the 750, 000 jalopies, which are projected from the road, the nation \' s general supply of vehicles used by about five per cent, Kelley Blue Book, and a pinch, to derive values of used cars, temporarily, in a scenario that, at the end of business and low-income households worse, even more, at the end of 'years

Moreover, the ecological point of view, it's not yet clear answer. Environmental costs of construction, as many other vehicles is significant, being replaced by new and older vehicles, instead of simply demolishing them could be in fact a slight increase in vehicle miles path (VMT), do not lead to the presumed reduction in consumption of gasoline.

The expansion allows CARS funds for about half a million more trade-ins, and may already be used in a matter of days. By all means, if you think about a new vehicle in the near future, now it's probably time.

And economic, perhaps a few months after you \ 'll know if this is a good idea or not