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Updated: 10:14 AM Jul 30, 2009
Staunton Salvage Yard Worried About Cash for Clunkers
Staunton, Va. Not everyone thinks the Cash for Clunkers program is a good idea.
Posted: 3:41 PM Jul 29, 2009Reporter: David Johnson Email Address: david.johnson@whsv.com |
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Not everyone thinks the Cash for Clunkers program is a good idea.
While the owner of a clunker may get a $4,500 rebate to trade in their car to a dealership, an automotive salvage yard can't compete.
The owners of B & A Auto Parts, Staunton, expects their valuable merchandise to dwindle.
The Cash for Clunkers program requires dealerships to destroy the engine and drive train in the clunker vehicle as part of an effort to remove gas guzzlers from the road.
Those expensive parts are among the ones which salvage yards most depend to earn money.
"If this program keeps running, we're not going to have used parts to sell. It's going to hurt us, and it's going to hurt the average everyday person," says Angela Ingram, of B & A Auto Parts.
Ingram says the consumer will have less used parts available and might be forced to purchase new from a dealership.
"For me to find a replacement used engine, I would probably be looking at $700 to $800. For me to go to the dealership to buy a new one, you're probably looking at $4,000," says Ingram.
She's not sure how the program will effect business in the long run. Ingram and her husband, who both own and operate the business, fear this program may put them out of business.
Latest Comments
THIS IS JUST THE BEGINNING PEOPLE!!!! THE GOVERNMENT IS DOING THIS TO SEE IF THEY CAN GENERATE NEW CAR SALES. ONCE THEY START THEY WILL CONTINUE WITH THIS SO THEY CAN DOMINATE NEW SALES VERSES USED WHICH MEANS EVERYONE WILL PAY THE PRICE, NOT JUST SALVAGE YARDS. IF YARDS SHUT DOWN THEN WHERE DOES THAT LEAVE THE CONSUMER? WE WILL BE FORCED TO BUY NEW CARS AND THEN THE PRICES WILL GO THRU THE ROOF!!! I AM GLAD SOMEONE HAD GUTS ENOUGH TO VOICE THEIR OPINION ON T.V.
...Off the road, people are forced to buy new cars, because think about it, There are new used parts for older vehicles to be sold. Say you have and 05 D1500, the dealer no longer makes parts, and we have to crush remains. So what do you have to do?? Hello!! Buy a new car! That's the story that should have been posted. There's even more to the story but honestly, if you'd like to know more, read it in the American Recycler for yourself!
I'm in the salvage business and people aren't getting the full story, nor are you understanding what this interview was about. The story isn't about our businesses necessarily losing money, it's about you the consumer! Read an article printed in the American Recycler, Vol.12 issue 7. Maybe that will broaden your point of view. The point of the interview was to open peoples eyes! The government has issued this "rebate" in order to make their money back for the So call bailouts of dealerships. We look at this as a test run, to see if people actually turn the vehicles in. And guess what, It's like flies on poo!! You turn your car in, then the dealer sells the car to us for $50.00. We then have to pay $65.00 to completely disable the drive train, by pouring a substance into the motor to flush out the motor and transmission. We then can only sell the body of the car but can only hold that car for 100 days and then have to crush ALL remains. So then , once they have all so call Clunkers..
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