Not all auto recyclers are thrilled at the government’s new cash for clunkers program, which requires car dealers to destroy the gas-guzzlers they get as trade-ins from new car buyers.
Used transmissions and drive-trains are a big part of recyclers’ income from each scrapped car, and under the federal program those transmissions and engines must be destroyed. The idea is to promote fuel efficiency and help automakers, but it comes at a time when more than a dozen U.S. auto parts suppliers have filed for bankruptcy this year
Used transmissions and drive-trains account for 60 percent of recyclers’ revenue from a wrecked or used vehicles.
The cash for clunkers program, officially called the Car Allowance Rebate System, took effect July 1, and rules were published Friday. It offers drivers who trade in qualifying vehicles up to a $4,500 credit toward a new, more fuel-efficient car from participating dealers. The government reimburses dealer
Some recyclers say cash for clunkers will hurt lower-income buyers who can’t afford a new car, even with the federal credit. They also claim that destroying vehicles will increase prices for spare parts as economy woes customers are experiencing who are depending on used parts to keep their cars running.
Now we are trashing car parts people could afford, and they’re not available anymore, There will be less cars to pull from, so the price of parts will go up for older vehicles.
At many warehouses, used transmissions and engines fill shelves stacked almost as high as the ceiling. Outside, rows of salvaged car parst hang from racks. Many parts are being stockpiled so parts are available for years to come.
Despite their disappointment, some auto recyclers are urging dealers to send the trade-ins to them instead of to auctioneers who could serve as middlemen for scrap yards.
This could be a big blow to consumers with older cars. I see no way it will adversely affect the used transmission market for newer more efficient cars and wrecked low mileage vehicles with good used transmissions. For those in the market for a use transmission for an older car, GotTransmissions.com has spent a tremendous amount of time and energy locating the small fleets of used transmission suppliers with older transmissions that are certified good used and have plenty of life left in them.
“It is not always about the price or profit at GotTransmissions.com†as Brian Hanson the owner told me. “It is worth the extra effort to make sure everyone has all options open to them when it comes down to purchasing a good used transmission. Keeping our customers happy and adapting to the times is one of our secrets to success.â€
