Cash for Clunkers Hurting Mechanics, Charities

While the cash for clunkers program is helping people get rid of their older vehicles, mechanics are seeing a loss in business as people trade in cars instead of paying for repairs.

Sunday, August 9th 2009, 7:18 pm

By: News 9


News9.com

OKLAHOMA CITY -- While the cash for clunkers program is helping people get rid of their older vehicles, mechanics are seeing it a bit differently.

Some repair shops say they are seeing a loss in as much as 50 percent of their business, saying people who would normally be getting their cars repaired are choosing to take advantage of the rebate offer.

"Because they're taking, say, a $2,000 car, that's only worth $2,000. Yeah, it might need $1,000 worth of repairs, but now they're getting $4,500 from the government, so why wouldn't you get rid of that car?" said mechanic shop owner John Grausam.

A number of charities are also feeling the finacial crunch with a the loss of donations because of the program.

More on News9.com:

- Metro Charities: Cash for Clunkers Program Hurting Work
- Cash for Clunkers Fuels Business at Vehicle Salvage Yards
- Does Your Car Qualify for Cash for Clunkers? 

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