CPST1

Cash for Clunkers May Cost Up to $45,354 Per Vehicle

As noted above the program permanently removes vehicles from the road. Without the program the same vehicles would be recycled for parts, or sold as, “used”. Cash for Clunkers is the only car buying program to have ever systematically destroyed the trade-in vehicle… It effectively sets up a chop-shop and a grey market to salvage anything from seats to wheels, axles, calipers, rear or side view mirrors, auto body doors, hoods and the like, regardless of …. At this time the dealers are petitioning for exemption to at least scab the engines and transmissions, before the vehicles are taken to be destroyed/recycled...

The Edmund’s figure does not factor the removal of the vehicle from used vehicle inventory, nor consider the residual effect of generating used parts sales. Vehicle parts often cost three times the value of the auto when new. Therefore, as long as the figure of 250,000 vehicles is used of which 200,000 are ordinarily trade-ins anyhow, the fact is on paper, each vehicle will be removed from service.

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