In all, 690,114 vehicles were traded in for new (or newer) vehicles as part of the government’s "Cash for Clunkers" program, totaling $2.9 billion worth of reimbursements, just under the $3 billion in funding for the program. When asked which industry segment would be impacted most by the “Cash for Clunkers,” nearly 38 percent of AMN readers voted for OE dealers as the segment most likely to be impacted by program, which ended last week.

However, according to a recent report from the Detroit Free Press, tow-truck operators, recyclers and automotive dismantlers are beginning to see an uptick in business thanks to "Cash for Clunkers" trade-ins. In our poll, AutoSalvage/Recylers received about 19 percent of the votes. "Because of payment delays, recyclers and other companies expect a steady stream of vehicles, and work, for months," said the Free Press report.

Leaders from the independent aftermarket were among the most vocal against the program, and they continue to be so after the fact. As, CARQUEST’s Pete Kornafel, chairman of the GAAS scholarship committee, writes:

“Here’s some math from your stories that the average clunker got 15 mpg and the average replacement gets 25…
 
·         A vehicle at 15 mpg and 12,000 miles per year uses 800 gallons a year of gasoline.
·         A vehicle at 25 mpg and 12,000 miles per year uses 480 gallons a year.
·         So, an average clunker transaction reduces U.S. gasoline consumption by 320 gallons per year. 
·         The total is about 700,000 vehicles – so that’s 224 million gallons / year.
·         That equates to a bit over 5 million barrels of oil.
·         5 million barrels of oil is about ¼ of one day’s U.S. consumption.
·         And, 5 million barrels of oil costs about $350 million dollars at $75/bbl.
·         So, we all contributed to spending $3 billion to save $350 million.
 
How good a deal was that???”

The breakdown of our poll results can be seen below.

Which segment of the auto industry will be most impacted by "Cash for Clunkers"?

OE Dealers: 37.84%
 
Independent Repair Shops: 29.73%
 
Auto Salvage/Recyclers: 18.92%
 
Automakers: 10.81%
 
Remanufacturers: 2.7%
 
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