Getting Colorado's clunkers off the road

As Colorado moves to implement stricter fuel economy rules and develop a zero-emission vehicle mandate modeled on California's program, the Colorado Automobile Dealers Association says its members are doing their part.

Members are participating in the association's nonprofit Clear the Air Foundation, which accepts donations of old, high-polluting vehicles from dealerships, sells those vehicles to scrap yards and uses part of the proceeds to fund scholarships for aspiring service technicians.

At the top of the leaderboard are Planet Honda and Planet Hyundai, located side by side in the Denver suburb of Golden. Together they have donated 281 jalopies since 2015. They're followed by John Elway Dealerships (262) and Pueblo Dodge-Chrysler-Jeep-Ram (139).

Planet Automotive owner Lee Payne was instrumental in creating the program in 2007 as an alternative to potential state regulations for the sale of low-emission vehicles this decade. A University of Denver study cited by the foundation found that half of vehicle emissions measured come from fewer than 5 percent of vehicles, and Payne said he feels a commitment to help get those high-polluting vehicles permanently off the road.

"I care, too," he said. "I have kids and grandkids. I don't want to leave a filthy world behind for them to deal with. As the technology gets better, you have to replace it."

Many counties in the state's urban areas require vehicles to pass periodic inspections as a condition of registration, but there is no statewide rule. Older vehicles often haven't been properly maintained or lack the pollution control technology of newer models.

But resales of the old vehicles at auction keep them in circulation.

"I see those same cars getting stuck on a truck and going out to rural Colorado, or oftentimes they'll head straight down I-25 and go to Mexico. And we don't really solve the problem. We just move the problem a little bit," Payne said. "I just don't believe in shipping the problem somewhere else. I'm pretty sure pollution is not aware of any borders."

Most dealers in the state, with Payne's encouragement, have participated in the program to some degree, although luxury and small dealerships may not have as many clunkers rolling in as a big mass-market store. Last year, the Planet rooftops sold 1,925 new vehicles, 1,800 used ones and 600 through wholesale channels.

When a high-polluting older vehicle comes in as a trade-in, dealers notify the Clear the Air Foundation, which arranges for a transporter to haul the vehicle at no charge. Auto recyclers use an online bidding platform to pay between $200 and $300 per vehicle, which they harvest for usable parts. The engine, shell and frame get crushed and the metal is shredded and recycled.

The Clear the Air Foundation said it received 572 vehicle donations in 2018 and has collected 3,760 vehicles since the program launched.

In some cases, Payne said, mentioning the donation program during the sales process can motivate someone to trade in a clunker.

"Think of it like cash for clunkers without the cash," said Tim Jackson, CEO of the dealers association.

There is money involved. While dealerships get a tax deduction for their donation, the foundation uses some of the proceeds from the sales to support Colorado students training to be service technicians, helping to fill a big need.

Last year, $50,000 in scholarship funds were awarded or earmarked for students in community college or other vocational training programs. Matching dollars from school foundations put the total pot of money at $93,000.

Qualified applicants can receive up to $2,500 in tuition or tool assistance.

Last year, foundation Director Mark Zeigler began using a student discount program with tool companies Snap-on and Matco to help defray the cost of a technician's first tool set. Students in qualified technical programs can receive up to $5,000 in tool money from the combined scholarship and discounts that average half the cost.