Updated 04/01/2009 02:33 PM

Program proposal hopes to increase auto sales

By: Becky Bereiter

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GREENSBORO – A legislative proposal called Cash for Clunkers would give drivers a voucher for up to $4,500 to spend on a newer, more fuel efficient car when they turn in their old gas-guzzlers for scrap.

Car dealers said the proposal could get people buying again.

“If the government is going to give a cash incentive to a potential buyer that is stacked with the manufacturer’s rebates and cash incentives, the could be a remarkable time and a great time for someone to get into the car market,” Mike Tozer of the Vestal Pontiac said.

But in order to do the most good for the economy, dealers said they hope the president focuses the proposal solely on helping U.S. auto makers.

“If he makes it to imports and domestics it will still be a positive, but I think the greatest impact to our economy would be if the Cash for Clunkers program applied to the domestic automakers,” Tozer said.

Similar programs in Germany and Italy have seen success culminating in a 20 percent bump in new car sales.

“If this is handled right, then I don’t see why this couldn’t be a money maker for us,” Billy Jones, the general manager at Salvage America, said.

Jones said the program could cause a boost in his business, and he said he’s grateful the plan takes recycling into account as well.

“I think getting more fuel efficient cars on the road and the less efficient off the road helps our energy situation and helps the air pollution and the environment as a whole,” he said.