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Updated: 8:08 AM Aug 6, 2009
"Cash for Clunkers" boosts Knoxville auto businesses
More money for the federal “Cash for Clunkers" program is set to head to auto dealerships nationwide.
Posted: 2:32 AM Aug 6, 2009Reporter: Mike McCarthy Email Address: mike.mccarthy@wvlt-tv.com |
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KNOXVILLE, Tenn. (WVLT) -- More money for the federal “Cash for Clunkers" program is set to head to auto dealerships nationwide.
The senate has agreed to vote Thursday on adding $2 billion to the deal.
The program's already driven up sales for East Tennessee car dealers, but other businesses hope to turn the clunkers into cash.
"It's almost doubled our business with the CARS Program," Toyota Knoxville Manager Adam White said.
The program gives drivers cash for trading gas guzzlers for more fuel efficient rides.
Toyota Knoxville's collected nearly 100 clunkers, making July its best sales month in two years.
"Our retail lot is still full, however we had a holding lot and with about 120 vehicles in it and the holding lot is totally empty," White said.
The car programs also picked up business at some East Tennessee auto parts recyclers.
"We've been swamped," Knox Auto Parts Manager Greg Peck said.
Knox Auto Parts has secured 300 clunkers from about two dozen dealerships, including Toyota Knoxville.
"We purchased the cars for scrap value. We've had tow trucks hauling in cars all day, every day one right after the other," Peck said.
Peck hopes to tear-apart the cars and turn them into cash.
"The thing we can't sell is the engine block, the engine itself," Peck said.
The dealership disables the engine. It's also tagged as part of the deal.
But Peck said everything else from the front bumper to rear bumper can be sold individually from parts.
"We can do that for 180 days," Peck said.
After that, the cars get crushed.
It's so-called "clunkers" like the 2002 Ford Explorer Peck sitting at his business that Peck says could be most profitable.
"You need a product and once you got the product, sales will go up. Can't sell it if you don't have it," Peck said.
Knoxville Toyota recently stopped participating in the "cash for clunkers" deal, at Toyota's request.
However, managers say it should be back on Thursday.
Other dealers could also join back in.
The extra $2 billion dollars is expected to push the deal through Labor Day.
Right now, the government says more than three-fourths of the program's $1 billion dollar fund is gone.
President Obama says the program will go broke by Friday unless congress re-fills it.
Senate democrats say they now have enough votes to pass the increased funding.
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