EXCLUSIVE: Dealers Are Reporting To AutoSpies.com That Those Clunkers That Are SUPPOSED To Get Crushed, Will NEVER Make It To The Compacter

the stripping of parts I'm sure will happen, in fact I'd be shocked if dealers didn't strip every usable item off the cars. The reselling of cars would be much harder -- the government knows the VIN #'s of the cars that are supposed to have been crushed, it'd be tough for buyers to register the cars and the dealer not get caught.

The stripping and re-use of parts, as long as the parts are labeled as used, is a form of recycling, and will keep other vehicles on the road, for modest costs.

Anyone who thinks that is an issue, has an issue.

There is a $15,000 fine on the dealer per instance of breaking the rules. Why would a dealer risk $15,000 on a shitbox that isn't worth $3500? They wouldn't.

Great article though.

Sell them to the auto dismantlers for scrap, in turn the usable parts can be reused, the ballance can be recycled.

Stripping the cars for usable parts is acceptable under the program. In fact the whole car is resellable minus the engine. That's the only thing that MUST be destroyed

Exactly. Another Great benefit of the program, the recyclability (?) of that which can be, minus the engine. It may be shady of the dealers to do it, but somebody will. Somebody must.

Why must the engine be destroyed? Oh wait... ecomentalists...

Regardless, I think this whole plan is stupid. It doesn't accomplish anything but add more debt for all of us who can buy our own cars without a government handout.

The way I see it, people buying these cars fall into one of two categories:

1) You drive a 92 Buick LeSabre for a good reason. You have no stable income and no cash on hand. This money just pushed you into buying a car you really shouldn't buy. God bless them, but a good percentage of these people will have their cars repo'd in 6 months. That doesn't help the car industry one bit in the long term and it certainly doesn't help these people.

2) The other group are people who were going to buy a car anyway very soon and this just accelerated their plans. This accomplished nothing more than flushing the pipeline of buyers for the next 6 months. That doesn't count as stimulating sales.

Bottom line; the car industry is going to be no better off for this "stimulus" and all we get for it is more debt. Uggh! Time for my meds.

You are close! oh so close!

I agree with a lot of what you had just said. But I also want you to keep a few other things in mind.

There are some very well off people as well as a lot of middle class people that drive shitboxes. They do it for many many reasons I will name a few.

Because they either don't see value in purchasing a depreciating asset, if you buy a 20 year old car you aren't going to lose much money they are good with their money and if they can get more for there old beater then what it's worth then they will cash it in.

They have a stable job, but love spending money, these people generally have no savings and can be filthy rich, expensive holiday's living in a house outside your means and eating out at expensive restaurants adds up...

Yes there probably will be a little bit of a slump in sales for the next 6 months, but realize that the sooner people buy a car, the sooner they will buy their next car ;) In the long run the incentives are actually getting more sales rather then just getting them sooner.

Who cares what happens to the cars or the parts? The goal of the program is to jump start auto purchases and it has been HUGELY successful.