CLUNK! THE CLOCK IS TICKING! - 11/03/2009

By GRETYL MACALASTER
Union Leader Correspondent
View Article Online Diretly At UnionLeader.com Here

WHEN JEFF KANTOR of Car World in Candia first learned of the Cash for Clunkers program, he wanted to be sure his auto recycling business would get its share of cars.

"We knew there would be some good cars and it would be very important to our business to get involved," Kantor said.

At that time, $1 billion in federal dollars was put toward the program. That money was gone within a week and the program was extended. But the six-month deadline for crushing the cars was not.

Kantor said more than 800 "clunkers" have come through his lot. He has hired two extra staff members to deal with them, but only about half have been processed. He said he runs a "green business" and recycles everything he can, making sure all fluids are drained, mercury switches are disposed of properly and that all good parts on the vehicles are recycled.

He is concerned that he and other auto recyclers will have to crush perfectly good parts if the deadline is not extended.

Kantor and other members of the national Auto Recyclers Association have been working with their legislators to get the extension.

To The Left: Jeff Kantor, owner of Car World in Candia, stands atop one of the more than 800 "clunkers" he has bought for parts salvage. (BOB LAPREE)

"With so many vehicles going through automotive recycling facilities in such a short period now, there is a high probability that without regulatory relief many valuable parts will be lost, thus resulting in diminished profits for automotive recyclers participating in the CARS program," according to a legislative action alert from ARA.

Kantor said he was heartbroken when he saw the number of quality cars coming in to be crushed.

"What will happen is we will be crushing quality parts that people in our state will need to keep their cars running and on the road for the next year or so," Kantor said.

Each car turned into a dealer under the program had to have its engine disabled; the engine gets crushed with the cars.

Kantor said the Cash for Clunkers program is having unintended consequences.

"They didn't think about the auto repair shop that needs an engine for one of its customers, or low-income families that might need an engine," Kantor said. "One million engines are being crushed that were perfectly good."

Fred Kelley, owner of Fred's Garage in Candia, said it is difficult to find used motors now. If one is found, the cost is much higher.

Kelley said he had a customer with a 1999 Ford pick-up that needed a motor.

"About a year ago, I could have bought that same motor for four or five hundred bucks. That same motor if you can find one . . . is running 1,200 to 1,500 bucks because there are none out there," Kelley said.

He said the price of used cars has also gone up.

"The price of used cars is going out of sight. If someone needs a used car now, they are going to pay," Kelley said.