Cash For Clunkers Helps Recyclers, Car Owners

SAN DIEGO -- President Barack Obama signed a $2 million extension to the Cash for Clunkers programs Friday morning. But it’s not just the dealerships that are benefiting from increased sales. For every car that comes into the dealership during the Cash For Clunkers program recycling yards are getting a boost.

Joe Kellejian is a regional manager for Ecology Auto Parts. He said his business is benefiting from the program.

Kellejian said while engines must be seized, “It'll still give the availability of the rest of the car to be parted out.”

Because the purpose of the program is to take older gas guzzlers off the streets, dealerships must kill the engines by pouring sodium silicate -- or liquid glass -- inside.

“It freezes the engine or seizes the engine and the engine can never be sold again,” said Kellejian.

But not so for the rest of the car, which is taken to recycling yards like Ecology in Chula Vista.

“There are a lot of people out there even at $4,500 rebate, they’re still not going to be able to buy a car,” Kellejian said. But those same people are still able to benefit from the Cash for Clunkers program.

“For their cars to be running safer and cleaner, you know, smog free, at least we have the availability of the other parts,” said Kellejian.

In the Cash for Clunkers program, what little is left of the car after six months must be destroyed.

Kellejian said, “Once the car is put through a shredder the metal comes out... in pieces.” Those pieces of metal are then sold around the world.