STAUNTON — Although many consumers and area dealerships are cashing in on clunkers, not all are happy with the government's
spare part rebate program.
Angela Ingram, with B&A
Auto Parts in Staunton, said salvage firms and
auto parts shops could be left with long-term consequences from the program that provides car shoppers a rebate of up to $4,500 if they trade in an old car for a new model. The Senate voted Thursday to add $2 billion to the popular Cash for Clunkers program, also known as the Car Allowance Rebate System.
"The government is doing it to bail out all the dealerships by stimulating new car buying to get their loans back," Ingram said. "But in the process, they are saying to hell with the little people, and there will be a lot of little car lots and places like us that will be suffering."
The problem: The program requires the traded-in car's engine be destroyed and the rest of the parts be crushed if it is not sold in the required six-month period. Ingram said this will cause the supply of used car parts to drop, which then would cause prices to increase to unreasonable levels for those looking to replace a discontinued part.
Ingram said she fears this scenario will force more people to purchase new models instead of buying or fixing up used cars. She said this could have a devastating effect on salvage yards and other companies that deal in used parts.
Jason Almarode, general manager of the Staunton Wrecking Yard, said his company is licensed and registered to serve as a disposable facility for the clunkers program. Although he said the program will give the company a modest stream of immediate businesses, he said the short-term benefits unlikely are to outweigh the long-term ramifications.
"I will be able to sell some parts, but a lot of it will have to be crushed because of all the mandated regulations associated with the program," he said. "In the long run, it is going to be a hindrance because they'll be taking a lot of the vehicle away from us. And with any vehicle, the most expansive part is the engine underneath the hood, so you are taking that engine away for all the salvage companies and the consumers."
