The Economy of Cash for Clunkers - How It Affected the Auto Wrecking Business

Recent changes in the economy have affectedcountry had the opportunity to work with car dealers
businesses across all industries worldwide. In Northto buy cash for clunker cars for scrap metal. The
America people have had to adapt in many ways. Astotal number of vehicles traded in topped off at
the economy soured, many Americans started to cut680,000. The majority of these vehicles ultimately
back on their spending. This caused the housing andlanded at an auto wrecker.
automotive markets to take one of the hardest hitsAlthough the program was a success among auto
of all. In response to the drastic slump of thedealers, it posed a unique challenge for auto salvage
automotive market, the government decided toyards. Most yards were not prepared for the vast
launch the cash for clunker program. Some viewednumber of cars that needed to be picked up and
this as wildly successful while others viewed it as adisposed of. Towing companies, car dealers, and auto
complete failure. Regardless of these opinions, thesalvage yards all worked together to meet
program had a "trickle down" affect that thegovernment deadlines and pick up and dispose of the
majority of people aren't aware of.clunker cars efficiently.
The cash for clunkers program was initiated toThe benefits that were largely unseen by your
stimulate the U.S. economy and automotive dealersaverage consumers were the infusion of available late
and manufacturers while aiding the environment. Themodel used car parts and volume of scrap metal.
program worked as follows: consumers could bring inThese two things stimulated business for junk yards
their old vehicles and receive a voucher toward aall over the country. Some of these outcomes were
new more fuel efficient car.also somewhat paradoxical by the mere fact that so
Car dealers were required to disable all of the trademany late model cars were taken off the street,
in vehicle's engines and the vehicles had to bewhile all the parts off of the cars were made readily
disposed of to a NHTSA approved disposal facility.available to car owners who didn't trade their cars in
This means that the facility must hold an automotiveduring the cash for clunkers program.
salvage dealer license. Auto salvage yards all over the