End of the Road Nears for Cash for Clunkers
Popular government program creates unintended ripple effect.
Aug. 23, 2009— -- It's the end of the road for the popular but controversial Cash for Clunkers program.
When all is said and done, an estimated total of 750,000 new car sales will have resulted from the government program before it hits the scrap heap Monday night, according to the Department of Transporation.
But car dealers planning to get reimbursed from the government won't be the only ones enjoying the benefits of Cash for Clunkers: Those selling used car parts will reap the benefits, too.
The unexpected ripple effect is clear at auto recycling yards such as Crazy Ray's in Silver Spring, Md.
"Business is great," said Joe Duff, co-owner of Crazy Ray's Used Auto Parts. "You can look around. There's plenty of people."
Crazy Ray's customer Jacob Holzman said, "These cars come in, in a lot better cosmetic condition, and I need a front bumper."
When Crazy Ray's has sold off the valuable parts, they crush the clunkers and send them to scrap yards.
Auto recycling and scrap industries say they won't feel the full effect of the program until September or October. That's because many dealers are holding onto the clunkers until they get paid by Uncle Sam.
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