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Valley salvage yards worried about 'Cash For Clunkers'
Posted: 08.03.2009 at 10:43 PM
Katie Lopez

Katie Lopez is a reporter for Action 4 News.

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Auto dealers nationwide have seen a boost in sales under the Cash For Clunkers program, but Rio Grande Valley salvage yard owners are concerned the campaign will hurt their business.

Alfred Mendoza owns Pacheco Salvage Yard in Edinburg.

He said Monday if the federal program continues, his business will not survive.

Mendoza said he will still be able to buy the clunkers once they are traded to local dealerships.

However, the cars' most precious asset will be locked.

"They'll put something in the motor to clog it and then sell it to the junkyards," said Mendoza.  "It's more expensive to rebuild a motor then to buy a used one that works already."

Mendoza said this will put his business in a bind because salvage yards across the nation will have to raise the price of parts to compensate for the loss.

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