How Will 'Cash for Clunkers' Affect the Collision Repair Industry?

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Web-Est, LLC asked over 800 small collision repair shops this question in a recent survey conducted between September 1st 2009 - September 28th 2009. Over a third of those who responded said it would hurt their business.

Web-Est, LLC, a collision estimating repair software provider, recently completed a survey asking small collision repair shops what they thought about the governments "Cash for Clunkers" program. The results provided some interesting views of how the industry might be affected.

"Now that our government has spent $2.6 billion to help car makers, the results are now in; just under 700,000 new vehicles are on the road. We thought this would be a good time to ask our customers what they think." Said Eric Seidel, President/CEO of Web-Est, LLC. "While most feel it's too early to see any meaningful change, the feedback offers a range of thoughts on the subject." Seidel continued.

Some of the feedback included comments such as:

"Newer car, forced to have full coverage, they have to fix it or be liable to the bank."

"The program kept people from fixing the older cars."

"No one spends money to repair 'clunkers'."

"People are going to replace their cars regardless of the program. As long as they are driving something our business shouldn't be affected."
To see more comments for those surveyed visit & the public results:

William Jeans, AOL Autos Editor-at-Large recently wrote an article entitled "Cash for Clunkers Buyers Suffer Buyer's Remorse, Won't Save Fuel," making the point vehicle owners drive more when they own a new car verses an old clunker. "CNW (the pollsters) surveyed drivers involved in the purchase of the first 239,000 C4C ("C4C" is the name of the Federal Program") vehicles. The average intended annual mileage was 10,894, up from the actual clunker mileage of 6,162. For those of you without a calculator falling readily to hand, that's nearly double."

From the collision repair industry standpoint, the AOL survey results are good news: the more the public drives, the more collisions there are to be repaired. However, it's important for repair shops to be up on the latest and greatest manufacture repair requirements. Also, keep in mind the newer the vehicle, is normally higher in average repair price... that's more good news. The bad news? All of us tax payers are paying for that nice new shiny car parked in your neighbor's yard. The silver lining? They'll need it fixed sooner or later.

About Web-Est, LLC

Web-Est, LLC is a provider of online auto collision estimating software. Web-Est licenses Mitchell International's collision repair data and configures the data into Web-Est's own operating platform.

Web-Est services cater to the small to mid-size auto collision repair market by providing a low-cost, high-value, logic-based collision repair estimating software system. The company's estimates are accepted by most major insurance companies. Web-Est provides additional services developed to meet the needs of independent collision repair shops in the area of online Internet marketing.

Privately held and based in the Tampa Bay, Florida Area, Web-Est is located in the community of Oldsmar. The company also maintains a satellite office in Columbus, OH.


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JR Seidel
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