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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.
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