by Constance Keasler

Created on: June 26, 2009   Last Updated: July 15, 2009

Although the government's CARS program was supported by the United Auto Workers, the National Automobile Dealers Association, the Congress and the Senate much criticism has been voiced against the program. "Cash for Clunkers" as it has been tagged will impact approximately 250,000 vehicles based on the spending limit. When these numbers are put into perspective all the outcry seems like a waste of breath. Possibly the cry should be "Hurry".

According to The World FactBook the population of the United States as of July 2008 was 303,824,640. In 2006 the U.S. Department of Transportation Federal Highway Administration, the same government entity in charge of implementing and enforcing CARS, reported there were 134,012,369 private and commercial cars and trucks registered.

So the plan as it stands right now will impact less than .001% of the population and less than .002% of the registered cars and trucks.

The NADA represents over 43,000 new car and truck franchisees so each NADA franchisee, which could have multiple locations, could sell 6 new cars or trucks from the thousands of cars for sale, before the program ends on November 1, 2009 and the program would be considered a success.

Critics site lower trade-in values, afford ability, financing qualifications, slant toward hybrids/foreign makes and impact on the used vehicle market as reasons the program won't work. Again the number of vehicles needed to make the program work is very very low in comparison to the number of vehicles on the road that qualify for the program. There are those that can benefit.

Using the fuel economy tools provided on the government website for the CARS program, a contractor could trade a 1999 Ford (Stock Quote:F) F150 2WD for a 2009 Ford F150 2WD. According to the Kelly Blue Book Official Guide a 1999 Ford F150 Super Cab 2WD with 150,000 miles trade-in value, which is usually less than the "black book" trade-in value used by a dealer, would be a maximum of $2875 compared to the $4500 government voucher allowed for that truck.

A heating and air company could trade in a 2000 Dodge (Stock Quote:C) B1500 2WD van for a 2009 Chevrolet (Stock Quote:GM) 1500 2WD Cargo van. According to the Kelly Blue Book the highest trade-in value for a standard model with 150,000 miles would be $1850.00 again less than the government voucher.

Regardless of the numbers or the critics, this is law and it has to be implemented and enforced. The implementation and enforcement areas represent associated economic opportunities.

Someone somewhere has to write the voucher tracking programs and update the title tracking program for the disposed vehicles. There might be seminar and training opportunities involved that could have an economic ripple effect. Companies that do commercial recycling and disposal will benefit slightly.

Given the fact that the program is capped to approximately 250,000 vehicles anyone with a car or truck or anyone with a vested interest in one of the associated opportunities needs to be on "GO"!

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