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Friday, July 31, 2009

More Problems for Cash for Clunkers: Worthless For Most Auto Recyclers

"This is because the law requires destroying the engine and the transmission, which makes up to 60% of a vehicle's salvage revenue according to the Automotive Recyclers Association. Being unable to sell these parts means the value has to come from the scraps and whatever parts they can strip for sale within 180 days of receiving the vehicle. After this period they are required by law to destroy it."

"'The CARS act, as written... is horseshit beyond repair' and points out the current scrap value is $140 a ton, which means a two-ton vehicle is only worth $280 as scrap. Subtract out the estimated cost of $200 to detox the vehicle as required by law and the total value is only $80 per car if nothing can be sold on it."

"There is nothing from a federal standpoint to stop a consumer from removing the radio, doors, etc."

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