Salvage Yards Picking Up Business from Clunkers - WTVM.com-Columbus, GA News Weather & Sports

ConsumerWatch

Salvage Yards Picking Up Business from Clunkers

By Zaneta Lowe  - bio | email | Twitter

COLUMBUS, GA (WTVM) - "Actually we had a customer trade in a 1998 Dodge Van, she received $4500 for it and she bought a Pontiac G6 and it saved her about nine miles per gallon," says Jay Auto Mall Finance Director Zarome Lakey.

It's apparent that Cash for Clunkers is clearly taking off for car dealers.  Toyota has the top selling vehicle of the program, and Jay Auto Mall has sold 34 of them, mainly Camrys, just since Cash for Clunkers kicked off.

"It has really, really stimulated traffic," says Lakey.

Not just for car dealerships, though.   Think of it as Cash for Clunkers in reverse.  Businesses like West Point Autoparts are hauling off clunkers for cash!

"Within about 180 days we have to crush the cars and recycle them," says West Point Auto Parts owner Randall Cotton.       

West Point Auto Parts is one of the authorized salvage yards in the area participating in the Cash for Clunkers program.

Once the deal is done at the dealership, service workers pour what's called liquid glass into the engine to disable it, then salvage yards pick them up.    

Salvage yards actually pay the dealers a small fee for the vehicles, but then make money through scrap metal and the few parts they can actually sell.

"It's just mostly body parts, tires and wheels and other stuff like that, says Cotton.    Workers from Westpoint picked up more than a dozen vehicles at Jay Auto Mall alone Thursday.

So it seems the company will likely see a boost in business until the brakes are officially slammed on the program.

"We'll probably be busy all week picking these cars up, the rest of the week and next week, we have several more," adds Cotton.



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