Kentucky attorney Sanders asks what happens to clunker cars traded in under the CARS program?

The CARS Act requires that the trade-in vehicle be crushed or shredded so that it will not be resold for use in the United States or elsewhere, as an automobile. The entity crushing or shredding the vehicles in this manner will be allowed to sell some parts of the vehicle prior to crushing or shredding it, but these parts cannot include the engine or the drive train.

Indeed, car dealers must destroy the engines of every vehicle they take in through the Car Allowance Rebate System (CARS) Program, formerly known as “Cash for Clunkers.” The Engine Disablement Procedures for the CARS Program call for dealers to drain all engine oil from the trade-in vehicle, re-install the oil drain plug, add two quarts of the sodium silicate solution, replace the oil fill cap and run the engine at 2000 rpm until the engine stops.

The agency has tested this method at its Vehicle Research and Test Center and found it safe, quick, and effective, according to the NHTSA Final Rule for CARS.