Not all auto recyclers are thrilled at the government’s new cash for clunkers program, which requires car dealers to destroy the gas-hogs they get in as trade-ins from new car buyers.

Used engines and drive-trains are a big part of recyclers’ income from each scrapped car, and under the federal program those engines must be destroyed. The idea is to get the fuel economy vibe going and help automakers, but it comes at a time when over a dozen U.S. auto parts suppliers are filing for bankruptcy this year

Used engines and related components such as A/C compressors account for the largest percentage of recyclers’ income from a wrecked or used vehicle.

The Automotive Recyclers Association is not at all concerned with damaging otherwise sell-able car engines, which means less profits for scrap yards, It can costs as much as $700 to $1,200 to process an older car, including transportation and removing toxic waste parts like mercury switches.

The cash for clunkers program, took effect July 1 2009. It offers drivers who trade in vehicles which qualify, up to a $4,500 credit toward a new, more fuel-efficient car.

Recyclers say this program will hurt lower-income drivers who can’t afford a new car. They also claim that ruining the vehicles will increase prices on typical sell-able parts. Not so good for people who want parts for their clunkers.

Now they are trashing car parts people used to be able to afford, and they won’t be available anymore. There will be less old cars, so the prices of parts will go up for older vehicles.

At many warehouses, used engines are starting to fill shelves stacked almost as high as the ceiling. Many parts are being stockpiled so parts are available for years to come.

This could be a big blow to consumers with older cars. I see no way it will adversely affect the used engine market for newer more efficient cars and wrecked low mileage vehicles with good used engines. For those in the market for a use engine for an older car, GotEngines.com has spent a tremendous amount of time and energy locating the small fleets of used engine suppliers with older engines that are certified good used and have plenty of life left in them.

“It is not always about the price or profit at GotEngines.com” as Brian Hanson the owner told me. “It is worth the extra effort to make sure everyone has all options open to them when it comes down to purchasing a good used engine. Keeping our customers happy and adapting to the times is one of our secrets to success.”