TheDenverChannel.com








Denver News
E-Mail News Alerts
Get breaking news and daily headlines.
Browse all e-mail newsletters
Related To Story

Cash For Clunkers Not Good For Repair Shops

Repair Shops Concerned Fewer Clunkers Means Fewer Repairs

POSTED: 7:45 am MDT September 2, 2009
UPDATED: 8:58 am MDT September 3, 2009

The government's Cash for Clunkers program ended as a boon for new car dealers but it could lead to a bust for some independent auto repair shops.

For many repair shops the down economy has been great for business. In some cases, shops are seeing record numbers of customers because drivers are opting to keep their cars running longer since they don't have the money to buy new cars.

But business in the coming months could be down because fewer clunkers on the road means fewer cars to repair.

Rolf Werner, the Mechanical Division Director of the Automotive Service Association, said business could be down 15 to 20 percent after his unofficial poll of service stations around the state. Werner, owner of Werner's Mastertek repair shop, said his business is already showing signs of the coming slowdown.

"These clunkers were in their prime for repair and they just won't be there on the road anymore and that will hurt us," Werner said.

Darrell Pridemore, owner of Pride Auto Care, said, "I think with the Cash for Clunkers coming in, it's going to change that equation a little bit because a lot of these older cars are off the streets now. And not only are they off the street but they've been disabled to where they won't be on the market place any longer."

But Pridemore said there is some good news associated with all the scrap cars.

"There's going to be plenty of parts out there. So a fender that was $100 may be worth $50 now," Pridemore said.

The one exception is engine parts. Since the government required the dealers to disable the engine of the clunkers they took in, those parts are out of the market and the prices could go up.

The clunker program has been great for local auto salvage yards.

Amy Wright, operations manager for Stadium Auto Parts, said, "We've just had our record month in history. We're not suffering at all."

Wright said they are getting the cars at a deep discount and are able to "part out" the car for a profit.

Dealers took in an estimated 8,900 vehicles as part of the Cash for Clunkers program, according to the Colorado Automobile Dealers Association.
The following are comments from our users. Opinions expressed are neither created nor endorsed by TheDenverChannel.com. By posting your comments you agree to accept our Terms of Use. To report an offensive or otherwise inappropriate comment, click the "Flag" link that appears beneath that comment. Flagging a comment will send it to our editorial staff for review.

Links We Like
Sponsored Content
Boost your home value and make buyers bite with these bathroom updates. More

Employers generally have options when it comes to hiring. Makes sure you present yourself as professionally as possible, or else. More

The signs of Cancer can sometimes be very subtle. Here's a guide to help you recognize them early. More

Snacking can be a healthy part of your diet, as long as you choose the right snacks. Get tips for eating between meals. More

MyReport Network

E - News Registration focus group
  My Report Network: Tell your story on 7NEWS. Sign up to be a member of our My Report Network
Sponsored Links

MyReport Network

E - News Registration focus group
  My Report Network: Tell your story on 7NEWS. Sign up to be a member of our My Report Network