Some Colorado auto dealers say Cash for Clunkers pretty pointless

By: Associated Press Email
By: Associated Press Email

Denver (AP) - Not everyone loves the Government's new Cash For Clunkers program, which requires car dealers to destroy gas-guzzlers they receive as trade-ins from new car buyers.

The Colorado Automobile Dealers Association estimates the $1 billion program could boost sales 10 percent, but auto recyclers say scrap dealers probably won't benefit much.

Used engines and drive trains provide at least half of scrap dealers' income from each junked car, and under the Federal Program
those engines must be destroyed.

The purported idea of the Cash For Clunkers Program is to promote fuel efficiency and help boost new car sales.


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