Cash for Clunkers Dealers Must Destroy Engines to Prevent Fraud

One problem with the Cash for Clunkers program is it takes cheap cars off the street for poor folks.  The program essentially makes every car, no matter the condition, worth $4500.00.  By doing so those of modest means cannot find an automobile for a better price.  Now  with the directive to chemically destroy the vehicles,  the reasonably priced used car market is destroyed as well.  In addition, this program makes engine car parts scarce because the engines are chemically destroyed.
This program is just another example of a poorly thought out program that does not help the poor.

July 24 (Bloomberg) — Dealers in the U.S. “cash-for- clunkers” program are being forced to disable trade-in vehicles with an engine-destroying chemical under new rules to prevent those who take the government subsidies from reselling the cars.
Dealers must replace the oil in the “clunker” with two quarts of sodium silicate solution and run the engine for up to seven minutes, permanently disabling it, according to rules released today by the National Highway Traffic Safety Administration in Washington.
“Substantial opportunity exists for fraudulent diversion of the trade-in vehicle, largely because its still-functioning engine makes it attractive to return the vehicle to the road rather than relegate it to the scrap yard,” the NHTSA said.
The government is trying to help jump-start slumping auto sales through the program, giving consumers new-vehicle credits of as much as $4,500 for turning in older cars. Sales of cars and light trucks in 2008 totaled 13.2 million, after averaging more than 16 million a year during this decade. Federal inspectors will review dealer records and vehicles for violators of the rules, who would face a $15,000 fine per infraction.
via Cash-for-Clunkers Dealers Must Kill Engines to Prevent Fraud – Bloomberg.com.

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3 Comments

  1. The only issue I have with this program is that I am paying for someone else’s new car. That sucks. Crushing old cars is not a big deal in my opinion. They will get crushed eventually anyway and the market is so flooded with used cars right now, the supply will never run low.

  2. What kind of a sick country have we become? When perfectly good cars must be destroyed “to prevent fraud”, we have reached a new low. As stated in the above article, there are those who can only afford cars for less than $4500.00. What are they going to do?. This whole thing is all for naught, anyway. Man’s influence on global warming is miniscule at best. This is just one more mechanism for the leftists to gain power over its people, while the problem is the leftists themselves. Al Gore’s, “Convenient Lies” has become the new bible for those more interested in control over man than they are in the environment or the security of our country itself.
    Speaking of the security of our country: They won’t allow oil drilling in our country and have buried the USGS report April ’08 showing that we have more oil reserves inside our country than anywhere else in the world. (Google Wiliston Basin). So much for our need to be dependent on foriegn oil. I guess as long as they’re running the country our lives and the strength of our country will continue to be endangered.
    We need a revelution in our country in order to save her.

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