Still More Cash For Clunkers Fail

Unintended consequences - one of the primary reasons why I support government doing less, as opposed to more. The Cash for Clunkers program has now officially caused problems from beginning to end. By law, clunkers must be recycled within 6 months. But the cars flooding into junkyards have created a backlog. The only way to comply with the law is to crush good parts and limit the recycling involved.

Another solid steel Obama Big Government mess.

"I've got a parking lot of almost 4,000 vehicles right now," said Harry Haluptzok, chief executive of John's Auto Parts in Blaine, Minn., near Minneapolis. His business typically dismantles 100 vehicles per week, but the workload has now more than doubled, and Haluptzok hired 10 more workers to keep up with all the extra vehicles.

Under the federal trade-in program, the cars are required to be crushed or shredded within six months of the date the vehicle is transferred from the dealership. Recyclers say the deadline - even a few months away - will be difficult to meet as they try to remove spare parts such as transmissions, front and rear axles, starters and alternators.

"True recycling is using something to its fullest potential and then recycling it over again by making it into steel and sending it out to become another engine or transmission or car," said Jeff Cantor, an auto recycler in Candia, N.H. "We're breaking that circle here by crushing good quality parts. We can't process them quick enough in six months."

Comments

[jpc]

Hopefully they will get caught up so that parts are available to keep the remaining clunkers in service for a long time. In my book, it is more energy efficient to keep something already manufactured in operating condition as opposed to scrapping it and manufacturing a new one.

A parallel example of why the government should do less, has anyone seen the early returns on the $8000 first time homebuyer tax credit? Initial returns show that 580 children claimed the credit (one as young as 4 years, this was done when the parents were over income); 74,000 were not first-time homebuyers; 19,000 claimants had not even purchased a house.

[x11b1p]

can we do the same with congress by december, and recycle the lot of them into a smaller, cleaner, more efficient and cheaper vehicle (with no cruise control and a constitutionalyzer interlock system)?

[MDr]

"580 children claimed the credit"

Well sure. The Dims did register them as voters, and I'm sure if one checked, you'd find they all voted in the last election.

The good news - 10 additional people were hired for three months to keep up with the junk backlog. Hey, every little bit helped in creating Barry's 33,000 job creating Porkulus bill.

[WAHOO WILLIE]

I'm just glad to see Obie shoving this on the middle class. Happy Shiny/Hopey Changey...chains you can believe in.

http://thomsonreuters.com/content/press_room/tlr_taxacct/492087

[irongrampa]

One of the unintended consequences of removing nearly a million vehicles from service was the effect on the aftermarket--the ones who do the maintenance on them, the pwoplw who supply the parts required, the people who manufacyure these parts, the ones who sell them the people transport them--the list is extensive.

Just another small ding to small business, but they can afford it, because profit is evil, right?

[PA]

If Obama ever releases all the data on this program, I think we'll find that the vast majority of these cars would have been within a year or two or retirement/replacement anyway.

They've been very hesitant to release the data about these vehicles so far, so clearly they've got something to hide.

[Fred Z]

I live in the world of lower end people. Not bad people, often just down on their luck. They work for me, day laborers, handy-men, some tradesmen.

A used Astro-van, the type these folks often use, and can keep running forever, doing their own work, used to be $1,500.00 for some old 90s beast to $5,000.00 for a 2004 AWD. 2004 was the last production year.

Now the 2004 ones are listed at $8,000+.

My journeyman carpenter, just out of rehab, thanks Obama and the Dems for his inability to find used wheels at a price he can afford.

[Liberty Jane]

I wonder if "Cash for Clunkers" will be looked back upon as the height of stupidity of the early 21st century. Nah, probably not, because there's so much competition.

I just can't stand the waste and destruction. My Dad has a beautiful shiny green '78 Ford F150. With an 8-track. He just kept it all these years and took care of it. Talk about turning heads.