Mission Solano’s executive director Ron Marlette described their concern: “It is too early to know how much we will be hurt by the Cash for Clunkers program, but we know we can’t compete with the government's checkbook. Our donations were already down due to the economy as people are driving their old cars longer or brokering a sale themselves. The Cash for Clunkers program could shut us down.”
In addition to selling cars to finance their assisting of the homeless or needy, organizations like Mission Solano also helps those who can’t afford to purchase new cars. Marlette explained, “We often sell our cars to individuals who cannot afford anything else. In some cases these are men and women who have been helped off the streets by the Mission. Now they have a job and need cheap wheels to get there. They can’t buy a new car. What are they supposed to do?”
In fact, the Cash for Clunkers program is wiping out an entire market of used cars purchasers. The teenage boy who mows lawns all summer long won’t be able to find an old clunker to purchase because the government intends to destroy or render useless the cars acquired through Cash for Clunkers. There are even reports that used car lot owners are finding it increasingly difficult to obtain older cars at auctions. With fewer older cars, prices are bid much higher, decreasing the profitability for used car lots and increasing prices for buyers.
While the Cash for Clunkers program may further the lofty government goal of saving the environment and stimulating a weak economy, its actions are hurting the vulnerable and poor. How sickeningly ironic that too often the government programs heralded as compassionate to the underprivileged end up hurting the very people they are designed to assist.