| There is a lot of talk about the new cash for | | | | programs could effect your business, there are |
| clunkers legislation that aims to take older vehicles | | | | several ways you can diversify your product |
| off the road. Many aftermarket parts suppliers, | | | | offering to appeal to a broader market. If you |
| independent repair, and body shops have been | | | | only offer classic parts perhaps expand into late |
| wondering how this will effect their business. In | | | | model, if you specialize in Fox Bodies expand into |
| our industry the Mustang & Classic Ford | | | | other 70’s-90’s pony cars such as the |
| restoration/performance market, reports suggest | | | | Camaro. The only vehicles we may see diminished |
| that there should be little change and there is | | | | in our industry are later model Mustangs, |
| even potential for growth. A report by | | | | however, the lower value cars in this segment |
| BB&T suggests that most people that will be | | | | such as the 2.3 four cylinder Mustang’s of the |
| taking advantage of the program will be lower | | | | 80’s and 90’s may not offer enough of a |
| income drivers, market research shows that this | | | | fuel savings to justify the car payment. These |
| demographic does not spend a significant amount | | | | programs will not be removing large SUV’s |
| on none-essential automotive products. Since | | | | off the road, and will more then likely be taken |
| most Mustangs from 1979-2004 still demand a | | | | advantage of by people that were in the market |
| higher resale value on the open market, most | | | | for a new car anyways. |
| drivers will opt to sell vehicles in place of trading | | | | Where the aftermarket may see a major benefit |
| them in. Another factor on the number of | | | | is with as many as 3,000 more dealerships closing, |
| vehicles that would be scrapped include buyers | | | | maintenance parts will need to be supplied by |
| qualifying for new car financing, with credit already | | | | aftermarket shops. If you happen to be in a |
| hard to obtain, low income drivers will have a hard | | | | region where a dealership is closing you may want |
| time finding an approval for a new car loan. Even | | | | to start aggressively promoting your company as |
| if a consumer went from 18 mpg to 30 mpg the | | | | a alternative parts, repair, and maintenance facility. |
| savings in fuel would be less than $50 a month. | | | | The aftermarket may benefit from this bill by |
| Many people driving 15-20 year old cars are not | | | | receiving good running parts cars that would be |
| going purchase $30,000 hybrids, using only the | | | | sent to dismantlers, however, nether of the bills |
| rebate as a down payment a $28,900 Ford | | | | have a clear outline of what would happen to the |
| Escape Hybrid for five years will cost nearly $575 | | | | “clunker” once it is turned it. With out |
| a month at 7% interest. Here in California most of | | | | clear definitions on this aspect of the legislation |
| the Cash Ford Clunkers rebate will be eaten up by | | | | the environmental gains could be limited or even |
| newly passed sales tax hikes and higher | | | | detrimental if vehicles are not properly dismantled |
| registration fees that in some parts of the state | | | | and disposed of, or if they simply end up being |
| can add almost 13% to the purchase price of a | | | | exported to Mexico and Central America the |
| new car. | | | | overall “carbon emissions” will only |
| If you are still concerned that Cash Ford Clunkers | | | | increase world wide. |