Remember Cash For Clunkers? Here's What Happened To It.|Olathe Toyota Parts Center (2024)

FAQs

What happened to all the Cash for Clunkers cars? ›

The old cars weren't recycled as much as people thought. Often times, dealerships destroyed the engines in these cars and then sent them to the landfills. They loaded up the engines with sodium silicate and then ran them until they seized. These engines would end up in the landfills.

Why? Because the cars traded in weren't recycled, according a recent story in E Magazine. See, while people were trading in cars that were older and less fuel efficient than modern ones, many of them were perfectly functioning with good engines.

If you're in California, you still have the option to sell your car to the state and between $1,000 and $1,500 for it under the Consumer Assistance Program (CAP) vehicle retirement option. However, there are some restrictions and caveats.

Then, lifting the hood, Henning poured a jug of "Clunker Bomb" -- a sodium silicate solution -- into the engine chamber. The liquid mix hardens as the engine runs, causing it to irreversibly seize up.

Cash for Clunkers was a U.S. government program that provided financial incentives to car owners to trade in their old, less fuel-efficient vehicles and buy more fuel-efficient vehicles.

Edmunds reported that Cash for Clunkers cost US taxpayers $24,000 per vehicle sold, that nearly 690,000 vehicles were sold, and that only 125,000 of vehicle sales were incremental.

Car dealerships prefer customers who finance their purchases based on the profit they receive as part of the deal. While lenders may absorb much of the profit earned in financing borrowers, many dealerships earn a commission for arranging financing.

The motor oil is drained and replaced with a sodium silicate solution, then the engine is started and run until the solution, becoming glass-like when heated, causes engine internals to abrade and ultimately seize.

You may not be able to access some dealership incentives: Many dealers offer rebates and other incentives, but often only if you finance your vehicle. You'll miss a chance to build credit: By using an auto loan, you could build up your credit score.

Eligible consumers may receive up to $1,200 in emissions-related repairs at a STAR test-and-repair station if their vehicle fails its biennial Smog Check inspection.

What do you do with a car that won't pass smog? ›

If your car fails its smog check, a test-only center will give you a report that lists the possible reasons. A test-and-repair location can also provide service to prepare your car for a retest. Don't delay repairs—you won't receive your car's registration stickers from the DMV until the vehicle clears a smog test.

“We find that total revenue to the auto industry was significantly reduced due to the environmental goal of the policy. If the policy had not been put in place in summer 2009, then total revenues to the auto industry from summer 2009 to spring 2010 would have been several billion dollars higher.”

The federal government required dealerships to pour sodium silicate, or liquid glass, into the engines of the traded-in clunkers. The solution destroys the engine, ensuring that the old cars and trucks never end up back on the road.

Engine oil was solidified by cooling from room temperature to -120°C and then melted by heating up to room temperature. Engine oil solidification commences at approximately -20°C. It is fully solidified at -98°C. Melting can be seen to occur over a wide range from about -91°C to -10°C during heating.

A few billion dollars worth of wealth was destroyed. About 750,000 cars, many of which could have provided consumer value for many years, were thrown in the trash. Suppose each clunker was worth $3,000 at a guess, that would mean that the government destroyed $2.25 billion of value.

The vehicles are shredded and the metal content is recovered for recycling, while in many areas, the rest is further sorted by machine for recycling of additional materials such as glass and plastics. The remainder, known as automotive shredder residue, is put into a landfill.

Unsold vehicles stay in the dealer's lot until someone buys them. Unsold new cars may be sold at a discounted price or used as service loan vehicles. It might be a good idea to buy an unsold unit of the previous model year because these vehicles are in good condition and are typically unused.

Since being featured on the first episode of The Profit, the brothers still argue, but the business continues to run, and more successful than ever. 1 800 Car Cash has added over 100 locations and became a NASCAR sponsor for national car purchasing.