1996-ford-explorerIt looks like the new government program C.A.R.S (Car Allowance Rebate System) is going to receive another $2 billion dollars.  This should be enough money to allow the program to run through the month of September.

 

It seems like Ford is ahead of the race in both categories; the Ford Explorer (MY’s 1994-1999) seems to be the top vehicle being traded in.  It’s the Ford Focus that tops the list as far as the new car to buy; followed by the Honda Civic, Toyota Corolla, Toyota Prius, and the Ford Escape.

 

The United States just adapted this concept not too long ago but the idea has been around the European countries for quite some time.

 

This concept might be a good way to boost new car sales and keep the automakers afloat, but for every action there is a reaction.  Glass’s is suggesting to the government to extend its Scrappage Scheme to avoid a possible fall in the new car sales and to avoid a possible collapse in revenues for the automakers and dealers.

 

 What does this all mean for us the consumer?  There are a lot of people in this country who rely on older vehicles to get them around.  They may not have the credit or want the debt to purchase a new car.  Not only that but if all these vehicles get scrapped then what happens to the salvage and used parts industry.

 

There are a lot of consumers who go to salvage yards to buy parts for their vehicles, heck I have done it a time or two.

 

With the salvage yards out of the picture, who’s to say that the new parts industry will hike up their prices?

 

It is too early to tell what may happen, but something tells me that at the end of the tunnel the big corporations will come out ahead at the expense of the American working class.  You and I will be the ones who feel the repercussion.

 

 

No related posts.