Cash for Clunkers Bill Creates a Dilemma

I’m stuck in a dilemma. On one hand I want to see no harm come to any automobile, especially a classic, yet on the other hand I want to see the automotive industry thrive. Although I have disdain for various “Cash for Clunkers” bills being floated around, one cannot argue with the success of such programs to stimulate new car sales.

Basically, a “Cash for Clunkers” bill is a scrappage program which would give U.S. tax dollars to consumers who turn-in older cars to have them crushed.

In my opinion, "Cash for Clunkers" programs threaten old car enthusiasts nationwide with the loss of valuable parts and parts-cars for repair, restoration and customization projects. The program also risks destroying classic, historic and special-interest vehicles -- our American automotive heritage.

But, if one can scrap a car and get say a $3,500 rebate towards the purchase of a new car, one can see how such a program would make sense.

From a green standpoint, the average new car emits only a tenth as many hydrocarbons as the average car on the road, and a twentieth of cars of the 1960s. A 1962 Volkswagen Bug undoubtedly causes more smog than a 2009 Ford Expedition.

A living petri dish of a mass “Cash for Clunkers” program can be seen currently in Germany.

Germany's $3,200 subsidy for people who scrap an old car and buy a new one has triggered a stampede to dealerships and a run on small cars. The auto industry's importance to Germany -- where the government estimates that around one in seven jobs depends directly or indirectly on autos -- led the government to introduce the old-for-new car subsidy. It took effect January 27.

To get the government check, people must scrap an existing car that's at least nine years old and buy a new car that meets the latest emissions standards. So far, 134,000 people have applied the so-called scrap bonus, a number rising by 7,000 a day.

Other European countries, including France, Italy and Spain, have introduced "scrap bonuses" and in some cases, subsidized loans for buying cars. The trend is spreading to Eastern Europe.

Some U.S. states are currently providing clunker subsidies or looking to get programs started.

Like I said, to a car guy or gal, a dilemma.