"Cash-for-clunkers" may be a hit with consumers and a boon to the struggling auto industry, but it's no bonanza for junkyard operators, who say they're being left quite literally with the scraps of the federal economic stimulus program.
While some salvage businesses are eagerly buying traded-in gas-guzzlers from auto dealers for parts and scrap metal, others are steering clear of the government program, with some complaining that it comes with more red tape than it's worth.
"We just ain't getting involved in it," says Roland Reiser, manager of Glory Days Auto Salvage in Hanover. "It's a joke. They're going to ruin the motors before you get the cars."
And Suzanne Olyphant, owner of Doug's Auto Recycling in Middle River, doubts she'll bid for any clunkers. "It's a lot of work to take them in," she said, pointing out the extra paperwork required to document how they're disposed of. And besides, "You can only sell so many things off of them."
Under the federal law authorizing the program, dealers must disable the engines of the traded-in clunkers so they can't be resold and wind up on the highway. The most common method is to drain the engine's oil and pour in sodium silicate, which "seizes up" the pistons.
The federal "cash-for-clunkers" initiative that gives buyers up to $4,500 toward a new fuel-efficient vehicle has proved so popular that it's in danger of running out of money by the end of the week. Congress is weighing whether to pour an additional $2 billion into the effort, on top of the original $1 billion in incentives.
Auto dealers have seen sales jump since the federal Car Allowance Rebate System, better known as cash-for-clunkers, began. But vehicle parts yards are divided over whether it's good for their business.
"It's great for us," says Charmie Polansky, an owner of Paradise Auto Parts in Elkton. She said her business has acquired about 100 "clunkers" from car and truck dealers and is angling for more. "There's tons of parts," she said, and her business is scrambling to satisfy dealers who all want the trade-ins picked up pronto.
Other auto-parts businesses say they'd like some clunkers, too, but have come up empty so far.
"We're hoping," says David Pemberton at Smitty's Auto Parts in Pasadena. And Sam Rozolem, owner of Race Auto Parts Recyclers in Jessup, says he's been negotiating with dealers to get some clunkers.
