CarMax, Inc., the nation’s largest retailer of used cars, is urging Congress to include used vehicles in the “Cash for Clunkers” legislative proposals. By including used vehicles, this legislation is better positioned to promote fuel efficiency, save jobs, and help more Americans afford a car. One legislative proposal that does include used cars is S. 247, sponsored by Senators Feinstein, Schumer, and Collins.
“More people will be able to participate in the program, more jobs will be saved, and more fuel-efficient vehicles will end up on the road by including used vehicles,” said Tom Folliard, president and chief executive officer. “Excluding this segment of the auto industry could potentially have a negative impact on millions of American workers and thousands of U.S.-based businesses. Nationally, used car sales outnumber new car sales nearly 3 to 1.”
Including used vehicles in the legislation will have the following benefits:
1) Help More Americans Afford to Buy a Car
For millions of American families, purchasing a new car is too expensive, even with a voucher or tax credit. A recent review of the online classified vehicle website AutoTrader.com indicates that the average price for eligible new cars is about $7,000 more expensive than eligible used cars. Including used cars will help those families who cannot afford to buy a new car and expand participation.
2) Save More American Jobs
Including used cars will stimulate the overall auto industry and save more jobs. New and used car dealerships employ more than 1 million people nationwide. There are nearly twice as many used car dealers as new car dealers in the U.S. Even at new car dealerships, used cars represent more than 40 percent of retail vehicle sales, and an estimated 27 percent of gross profits. Last year, hundreds of these dealerships went out of business due to economic conditions resulting in a loss of tens of thousands of jobs.
3) Increase the Number of Eligible Fuel-efficient Cars on the Road
There are tens of thousands of used cars now sitting on dealer lots that meet the fuel efficiency targets in the legislative proposals. CarMax’s inventory alone currently includes more than 12,500 available vehicles with more than 24 miles per gallon on the highway. Including used cars will expand the number of fuel-efficient vehicles that are eligible for the program.
