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Clunkers Program Hurts Auto Repair Industry

Posted - November 03, 2009 8:18pm

FAIRFAX, Va. - Sales figures released Tuesday show sales are up for Ford and General Motors months after Cash for Clunkers ended, but that's hurt auto repair shops like Precision Import Service. The usually greasy floor is now littered with leaves, expensive Tools are collecting dust, and mechanic uniforms hang clean and untouched at Precision Import Service. "Ever since Cash for Clunkers, it's like someone turned the spigot off," said Precision Import Service Co-Owner Don Brown. Just over two months after the wildly popular "Clash for Clunkers" program, this is the sobering reality at the once-thriving repair shop in Fairfax. More than half of its work bays sit empty and half of the staff at the shop have been laid off. "Basically we had our best week," said Brown. "The very next week was the worst week in business." The $3 billion federal auto-sales promotion this past summer gave up to $4,500 in rebates to owners switching older gas-guzzlers for new, fuel-efficient vehicles, but now repair shops are feeling a major hit. Auto repair expert Pete Vandervate said, "I think what Cash for Clunkers did is take a lot of cars out of circulation that still were good cars." With nearly 700,000 new cars on the road because of the program, fewer people are making stops in the repair shop. Auto experts say this is the slowest the auto repair industry has been in decades. "Eventually, I think it will come full circle for us," said Precision Import Service Co-Owner Steve Wynkoop. "Right now, it is a struggle."

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