Saturday, August 1, 2009

Cash for Clunkers

Here's an interesting perspective on the cash for clunkers program. The clunkers are just piling up on dealer lots.

It turns out the salvage folks really aren't that interested in salvaging vehicles because the program essentially requires the engine and transmission to be destroyed via chemical. That significantly lowers the salvage value to the point where they really have little incentive to bother with them. Salvage yards say they can't make much money off of things like wheels and alternators - it's the used engines/parts that have value.

Anyhow, I thought this Behind the Scenes story was pretty interesting.

No comments: