Vinart Blog

The United States Congress recently passed legislation that would provide vouchers for buyers of new cars if they are more efficient than the cars the currently own. CarMax does not think that this program is good enough and has urged Congress to do the same thing for buyers of used cars as well.

“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,” explained Tom Folliard, the chief executive of CarMax. He went on to say this: “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.” Following are the advantages Folliard mentioned and the reasons behind them:

• It would help more Americans afford a car. Eligible new cars under this program cost an average of $7,000 more than the eligible used cars. Even with a voucher, this would not cover the difference.
• It would save more jobs in America. Including used cars in the voucher system would stimulate the auto industry and put more people to work at used car dealerships.
• It would increase the number of fuel-efficient vehicles on the roads. There are tens of thousands of used cars sitting at dealer lots that meet the 24 mpg standards, but consumers cannot afford to buy them. As a result, they are just keeping their current cars which are less efficient. Giving used car buyers the voucher would encourage them to turn in their cars for a more efficient one.