Today President Obama signed a measure into law extending the Cash For Clunkers program budget from $1B to $3B, extending the popular promotion into Labor Day. Proponents of the measure say it’s providing the US economy and the auto industry a much needed boost, and will likely prompt over 600,000 new car sales once all is said and done. Many opponents of the measure have called it a wasteful use of funds, essentially removing from the roads and destroying hundreds of thousands of functional vehicles, and auto parts dealers have decried the measure, fearful that vehicles that need their services the most are being replaced with vehicles unlikely to need replacement parts or services any time soon.
In the aftermarket truck accessories industry, the measure is unlikely to have a negative effect, as purchases are typically discretionary and not essential for vehicle function, and the average vehicle that aftermarket parts are purchased for has a value greater than the $4,500 maximum voucher offered by the Cash for Clunkers program. Essentially, truck owners aren’t generally purchasing aftermarket upgrades for clunkers.