Cash for clunkers -- missed it by that much

I should've had a V8.

The "cash for clunkers" program turned out to be so popular that Congress voted to triple the cash for it by adding another two billion dollars. (The Senate may vote on it next week, and it's a given that Obama would sign a spending bill that the people actually want.)

It's likely that just about every owner of a vehicle with a market value less than $4,500 has taken a run through the eligibility guide to see if the old jalopy qualifies. Yeah, I did too.

I drove my old 4Runner new off the lot 21 years ago, so it fits within the less-than-25-year-old requirement. But the power house is a puny little four cylinder with a combined MPG of 19. And that's just one measly MPG higher than the maximum allowed for the rebate. Dammit. Should have gotten the big engine.

Oh well. The clunker is probably worth a couple of grand on the market, so to be able get $4,500 for it looks on the surface like a bargain. But it runs just fine, and to get the rebate requires shelling out the money for a new vehicle. So it's a false economy for anyone who doesn't need a new vehicle. It would take someone with the highly practiced skills of a new car salesman to dispel that logic.

The bill is the "Consumer Assistance to Recycle and Save Act of 2009" and later, "Car Allowance Rebate System" (C.A.R.S.). But it's going to be hard to get away from the sweet sound of "Cash for Clunkers."

While few people foresaw how popular that program would be, it is widely understood that any real economic stimulus would require reducing the amount of money the government extracts from taxpayers or giving some of their money back, and that's what the program did. I've done a lot of complaining about our elected officials, and there are still plenty of reasons to complain. But if they are going to spend money anyway, let's appreciate any effort to get money back into the hands of taxpayers.

And there's some good news for those of us who hang onto our clunkers -- maybe there will be some more used parts available for them. It's not a problem for many, but it is for owners of the vintage 4Runners. Maybe the owners of the old 4Runners with the big engines will take the cash and turn in their clunkers and get the parts on the market.

Some of the original reports about the program said the clunkers would be crushed. Not so, take a look at the law. (Go here and click "Download the Law" for a PDF.) Here's the relevant part:

(B) SAVINGS PROVISION- Nothing in subparagraph (A) may be construed to preclude a person who is responsible for ensuring that the vehicle is crushed or shredded from -
(i) selling any parts of the disposed vehicle other than the engine block and drive train (unless with respect to the drive train, the transmission, drive shaft, or rear end are sold as separate parts); or
(ii) retaining the proceeds from such sale.

So the clunkers can be dismantled, and every part except the engine block can be resold. It's conceivable that the person responsible for crushing the clunker could remove the engine,  drop in another engine, and sell it.

See ya on down the road.

Added: This Youtube video, via Newsbusters, purports to demonstrate the destruction of an engine for the "Cash for Clunkers" program. It appears as if they drained the oil, coolant, or both, and revved the engine until it smoked and quit. They didn't have to do that. They could have removed the engine and stripped it bare. The engine block is just a hunk of metal with a bunch of holes in it. A working engine is a block with hundreds of parts in and on it to make it operational. The block is the only thing that had to be destroyed. I would think that any junk dealer worth his/her salt would have removed any reusable part rather than simply burning it up like they did.

Comments

[Dennis]

Part of the requirements for the dealer is pouring something called "Clunker Killer" into the gas tank. It is some type of chemical that renders the engine completely unusable within a couple of minutes, so there is SOME protection in that area written into the law. I'm sure that there will be some dealers who will try to make an extra buck by selling the engines, though. They will probably face heavy fines if caught.

[Geo]

Thanks Dennis. Clunker Killer sounds like nasty stuff.

For what it's worth, a Chevy short block sold on Ebay this morning for $1,408 with free shipping. So at least theoretically it's possible to drop in another engine and end up with a drivable vehicle.

[Jeff]

George my pickup is old enough, and the mileage is just low enough to qualify ... but I REALLY like my truck.

[Geo]

Jeff, hang onto it. It's a false bargain if you don't already need a new one.

On the other hand, if you don't upgrade someone might remind you of it the next Earth Day.

[Redman50]

Who determines what MPG your old car can get?

[Redman50]

I read that the poison they pour into the clunkers is a "sodium silicate solution", whatever that is.

[Geo]

Redman, that sodium silicate sounds like salt and glass. If they put it in the crank case it probably grinds up the bearings and anything else that should have been lubricated. If they put it in the gas tank it would probably mess up whatever injection system the vehicle had.

It's some government agency that decides what our official MPG is. You think they did any research or just shot from the hip?

[romoBraicshah]

Credit you looking for details. It helped me in my mission

[Rulas]

If passed as is, Cash for Clunkers will put every chatlriabie car donation program out of business since the amount of the voucher would be much greater than the tax deduction. Charities nationwide will lose millions of dollars. A simple solution is to offer the voucher for donating the car to charity. The charity would then scrap the car per the provisions of the law and use the proceeds to help fund their programs. In this senario, ervryone wins, car dealers and manufacturers, charities and taxpayers.