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Re: Cash for Clunkers [Re: FrankR] #955971 07/30/09 06:27 PM
Joined: Mar 2005
Posts: 62
RSMonty Offline OP
Getting the Wheeling Fever
Do you know if the dealer disables the engine and then can resell the truck to any recycler?

Auto salvage yards are pretty slick about getting around laws.

I know someone that is in the business. They have been involved with other programs like cash for clunkers and still find ways to get the cars back on the road.

For example: refineries and vehicle based corporations own lots of test cars that are supposed to be junked after test trials. The salvage yard simply boxes them up in ship container boxes and ships them to other countries where they get re-registered and then can re-enter the country. Even cars that have been cut in half get soldered back together and resold. Of course I doubt old vehicles will be worth all the shipping and slippery paperwork risks. I consider them a very small step above a chop-shop.

Nairobi and Egypt are big clients of theirs. I've had trouble getting Montero parts because cars are worth more to foreign countries is what I've been told. This yard has a contract with someone in Egypt to buy all Mitsubishis. Apparently they make more money selling a car whole to foreign countries than to crush it or store it for parts.

Re: Cash for Clunkers [Re: off-roader] #955972 07/30/09 06:32 PM
Joined: Jul 2009
Posts: 305
B
bodyswapped8789 Offline
Mudrunner
Quote
Quote
It will, but if you see a vehicle that is designated a clunker, you should be aware that the yard will be required to crush it within 180 days of the initial turn-in at the dealer, so you'll need to grab stuff when and where you find it or it'll be gone froever.

Frank


Good point Frank. Mean's we can't dilly dally about when they're there,
they're essentially on their way out.


wouldn't you think that the yards would pull what they can and crush what
they have to? I would. Now you'll have the parts cheaper cause the supply is up. And now we can put more on the road. Doesn't sound like the environment is what there looking to help. Maybe alittle.


89 V6 manual trans Dodge Raider frame 87 cold weather pkg 2" body lift, Soft 8's wraped in BFG km2 33x10.5x15, JDM Pajero yellow Bosch fogs. Yackama basket. Duel bouncies gen II rear springs,gen II ft brakes,master and booster.
Re: Cash for Clunkers [Re: FrankR] #955973 07/30/09 07:21 PM
Joined: Jun 2008
Posts: 785
V
vr4 Offline
Rock Warrior
*****
Quote
Quote
Dealers know their way around, give it some time and they will start selling those clunkers for more money than what they are going to get from the government, which I believe is only $50.



--------------------------------------------------------------------------------



Not really - the dealers will have to insure that the vehicle is destroyed within a certain amount of time - so most of them will likely sell the clunkers to a recycler for about $200 each, based on current scrap steel prices. If the dealer isn't really careful, he can be liable for a $15,000 fine per vehicle.


A little follow-up on this, based on yesterday's conversation with a dealer:

I received a phone call from a new car dealer who was nearly in a panic to get rid of a car he had taken in on trade. The dealers have seven (7) days to disable the engines on these cars, complete the paperwork and get them off their lot to a recycler, or face a severe penalty.

If you've ever thought a dealer played a good game of poker with a car you wanted to buy, this program is the other side of the coin. The fear is almost comical, but very, very serious. Any dealer who tries to get cute with these cars is asking for big trouble.

Frank



looks like my old dealer is going to be in a pickle soon. as of yesterday they have 41 clunkers.


87 Montero V6 SWB auto. dual bouncies
89 Montero V6 SWB 5 speed. dual bouncies
97 3000gt VR4 upgraded turbos, 10:1, E85
91 Stealth TT twin 18Gs, cams/heads, E85
03 cobra lightly modded <img src="/forums/images/graemlins/lol.gif" alt="" />
91 MR2 turbo
Re: Cash for Clunkers [Re: vr4] #955974 07/30/09 07:41 PM
Joined: Jan 2000
Posts: 16,227
off-roader Offline
Web Wheeler
*****
So to just check my sanity I did a bit of number crunching and have determined that unless I have an unreliable clunker or simply wanted a less expensive way of buying a newer car, this program is not worth it from a $$ and cents pov.

My logic is... since both Monty's are paid for, I'd have to save $300+ in gas each month (added $200 or greater car payment + $100 increase in full coverage insurance) to even out financially.

On the plus side I could take advantage of what would 'technically' be a more reliable car that has a warranty.

6 or 1/2 dozen IMHO. End killer for this deal is I like my Monty (either of mine) far better than any car today that's in an affordable price bracket (under $25k).


Off Roader
98 Montero with the Winter Package
89 Montero minty clean and reserved for overlanding trips or Cars and Coffee events
96SR (3.15:1 xcase, 35's) gone to the rust gods
96SR Build Up Thread
Old web page
Old web page
Re: Cash for Clunkers [Re: FrankR] #955975 07/30/09 09:15 PM
Joined: Mar 2006
Posts: 749
M
MI_Mitsu Offline
Rock Warrior
***
Quote
Also, be aware that although the legislation only requires the engine block be withdrawn from resale, the methodology of disabling the engine block with sodium silicate will render the heads, cams, crankshaft and all internal parts unuseable. You will still be able to use the engine accessories (alternator, water pump, starter, manifolds, etc) that are not damaged - but some of these engines may get hot enough in the processing of seizure that manifolds will warp.

I do want to tear down one of these engines to see what happens to it. <img src="/forums/images/graemlins/cyclops.gif" alt="" />

Frank



I think this means the distributors will also be toast. Unless with what little oil they get on the cam gear they might be spared but....?????

<img src="/forums/images/graemlins/scared.gif" alt="" />


89 Montero LS 3.0L/Auto
90 MightyMax 2.4L/Man

Parted/gone - parts available!
89 Montero LS 3.0L/Auto [Blue/Blue] (2 of 2)
89 Conquest SHP
88 Conquest SHP
87 Dodge Raider 2.6L/Auto
91 Montero RS 3.0L/Auto

Others: 37 Lincoln
Re: Cash for Clunkers [Re: RSMonty] #955976 07/30/09 09:34 PM
Joined: Feb 2004
Posts: 10,238
FrankR Offline
Web Wheeler
****
Quote
Do you know if the dealer disables the engine and then can resell the truck to any recycler?

Auto salvage yards are pretty slick about getting around laws.

I know someone that is in the business. They have been involved with other programs like cash for clunkers and still find ways to get the cars back on the road.


Forget it, folks. <img src="/forums/images/graemlins/shame.gif" alt="" />

Anyone who is stupid enough to screw around with this program is going to regret it greatly. I won't even try to answer all of the "suspicions" - any of these vehicles must be sold to a recycler who is already involved with the EPA's mercury switch removal program (ELVS) and an approved entity. Next, the dealer needs to ensure that the recycler has the means to crush or shred the vehicle - because if they aren't destroyed in a specific time, all manner of badness will rain down upon the dealer and/or recycler.

It's also not enough that a disposal facility participates in the ELVS program - they also need a crusher or access to a mobile one - within the proper time-frame - risky if you don't have your own. <img src="/forums/images/graemlins/smile.gif" alt="" />

If a disposal site is not already approved by ELVS, they can sign up, but will have to sign an agreement that - going forward they will recycle mercury switches, freon, oil, etc - many things they may not be equipped or willing to do. If they sign up now to get in on the CARS program, but later don't keep the recycling agreement, they are subject to fines. <img src="/forums/images/graemlins/smile.gif" alt="" />

Facilities in the state of Maine will be subject to particular scrutiny, since although these facilities do remove mercury switches in accordance with state law, none are members of ELVS. That could provide some interesting conversations.

In case some folks suspect there are any cases of fraud within the process, there is a hotline at the Office of the Inspector General (OIG) that has been set up to investigate and prosecute any who try to fool around with this. Cyber crime is also included and has its own reporting method, which will bring in the FBI and Bureau of Justice.

Hearings for violations are a little different than most civil trials - they will not allow for any discovery proceeding and the Hearing Officer is not bound by strict rules of evidence. IOW, you're toast if you get caught.

In case anyone wants to read the final version, here it is:

TheRule.pdf

This is some very serious stuff and I wouldn't want to even think about not being in full compliance - the dealers and all recyclers had better do the same.

Frank


'89 [color:"white"]G-Raider[color:"white"] [color:"black"]Supercharged 3.0L, MegaSquirt 2, lockup A/T, 2.5" exhaust, 172k, Cibie H4s/Oscar SCs, Hella Micro DE fogs, Cobra CB, Superwinch hubs, LSD rear/Aussie Locker front, Bilsteins, Lifeline AGM, Rust-Oleum
Re: Cash for Clunkers [Re: FrankR] #955977 07/30/09 09:39 PM
Joined: Sep 2004
Posts: 4,479
StockRaider Offline
Roll Me Over
***
I was going to recommend my mom do this with her old hyundai... But after reading all of this, I will just rebuild its damned engine. <img src="/forums/images/graemlins/smile.gif" alt="" />


Richard E
1989 Montero - Stock-ish
1989 V6 Auto Raider - 5.3 Vortech Swap.
1987 Mitsubishi Starion 2.6t, soon to be 3.5
1983 Honda XL600R
Re: Cash for Clunkers [Re: FrankR] #955978 07/30/09 10:14 PM
Joined: Mar 2005
Posts: 62
RSMonty Offline OP
Getting the Wheeling Fever
Quote
Quote
Do you know if the dealer disables the engine and then can resell the truck to any recycler?

Auto salvage yards are pretty slick about getting around laws.

I know someone that is in the business. They have been involved with other programs like cash for clunkers and still find ways to get the cars back on the road.


Forget it, folks. <img src="/forums/images/graemlins/shame.gif" alt="" />

Anyone who is stupid enough to screw around with this program is going to regret it greatly.

Frank


The guy I know with the salvage yard has already done time in a Fed prison. You're right. They don't mess around.

Too often greed motivates some people to play with the rules hoping they won't get caught.

Re: Cash for Clunkers [Re: RSMonty] #955979 07/30/09 11:16 PM
Joined: Feb 2004
Posts: 10,238
FrankR Offline
Web Wheeler
****
This program is rapidly building steam. I don't know how long it'll take for the government to run through the first billion bucks, but I suspect not long.

All of a sudden, I'm the dealer's long lost best buddy. It's sure good to be needed. <img src="/forums/images/graemlins/wink.gif" alt="" />

Frank


'89 [color:"white"]G-Raider[color:"white"] [color:"black"]Supercharged 3.0L, MegaSquirt 2, lockup A/T, 2.5" exhaust, 172k, Cibie H4s/Oscar SCs, Hella Micro DE fogs, Cobra CB, Superwinch hubs, LSD rear/Aussie Locker front, Bilsteins, Lifeline AGM, Rust-Oleum
Re: Cash for Clunkers [Re: FrankR] #955980 07/30/09 11:34 PM
Joined: Feb 2004
Posts: 10,238
FrankR Offline
Web Wheeler
****
For those interested, here is a copy of the Dispoal Facility Certification Form that the recyclers must submit - note the fine print listed under " WARNING ":

Disposal Facility Certification Form

Anyone who wants to mess with that is crazy as a loon.

Frank


'89 [color:"white"]G-Raider[color:"white"] [color:"black"]Supercharged 3.0L, MegaSquirt 2, lockup A/T, 2.5" exhaust, 172k, Cibie H4s/Oscar SCs, Hella Micro DE fogs, Cobra CB, Superwinch hubs, LSD rear/Aussie Locker front, Bilsteins, Lifeline AGM, Rust-Oleum
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