When the federal car-buying incentive program "Cash for Clunkers" began in July, local auto salvage yard operators knew they would soon be flush with new inventory, ready to be dismantled and sold for parts.

But the wildly successful federal program netted them some surprises: There were far more vehicles than they anticipated, and some of the "clunkers" were far nicer than what typically arrives in salvage lots. Instead of aging rust buckets with uncertain paint jobs, most of the vehicles that people traded in during last summer's federal rebate program were less than 20 years old and had tidy interiors.

"A lot of them came in with brand-new tires; it was amazing," said Jacob Schneider, who co-owns Escondido's Cardinal Auto Wrecking with his brothers.

Local salvage yard operators and national industry association leaders say they don't know what this wave of better-quality, junked vehicles will do to the nation's used vehicle parts business. Some anticipate that it will result in a national decline in the price of some used-car parts. Others argue that a significant surplus may not happen because the salvage yards have a rapidly approaching deadline to process and dispose of each traded-in vehicle.

Under the federal "Cash for Clunkers" guidelines, salvage yards must pick off any parts they want and crush each vehicle within six months of receiving it from a dealership. Some yards now have thousands of vehicles to process.

"Frankly, I wouldn't place bets one way or another," said Martha Cowell, executive director of the State of California Auto Dismantlers Association, as she discussed what the program might do to her industry.

Making the trade-in

Just less than 700,000 vehicles were traded in nationally before the "Cash for Clunkers" program ended in August ---- far more than its creators had anticipated. In fact, the government quickly ran out of its original rebate fund of $1 billion and had to add $2 billion. Even so, it ended the program months sooner than planned.

To collect a federal rebate of up to $4,500 for each trade-in, car owners had to meet a few requirements. The trade-ins had to be less than 25 years old, be in working condition, and get fewer than 18 miles per gallon of gas.

In order to prevent any resales of the trade-ins, each "clunker" had its oil drained at the dealerships immediately after it was turned in. Sodium silicate, commonly called liquid glass, was injected into the engine, which was run until it seized up and became inoperable. Then the dead vehicles were sent to salvage yards that had special federal certification to participate in the program.

Under the rules, the salvage yards now may pick off headlights, seats, doors, and electronic equipment, but they can't resell a vehicle's engine. If they do so, federal officials argue, that would defeat one of the purposes of the program, which aimed to get gas-guzzling vehicles off the streets and give the nation's car manufacturers a boost in a time of sagging sales.

Changing the parts market

Matt Hall, owner of A1 Auto Dismantling of Oceanside, said that he initially thought he'd purchase about 250 of the trade-ins from arrangements he made with local dealers. Instead, he was able to obtain 400 because dealers received so many of the trade-ins.

The Carlsbad city councilman said he now has more vehicles on his salvage lot than he's had in his 40 years in business.

"It really changed, in my mind, the whole dynamic of the auto industry," he said as he discussed how the federal program may affect everything from used-parts supplies to used-automobile sales.

For example, he got 15 Toyota Previas, a minivan that's typically hard to find in salvage yards because they don't break down that often, he said. Some of the other "clunkers" that dealers sold to him for salvage were downright luxurious ---- mid-1990s BMWs, Lexuses and Mercedes.

"It's hard to fathom why some people would turn them in, especially for the price they were getting when they turned them in," said Michael E. Wilson, executive vice president of the international Automotive Recyclers Association.

Taking apart the trade-in

Wilson said that the trading in of nicer vehicles may eventually have a ripple effect throughout the used-car industry. Many of the vehicles that were traded in appear to be a family's second, well-cared-for vehicle ---- the sort that might normally have ended up on a used-car sales lot, he noted.

Ecology Auto Parts, a regional auto dismantling company with a self-service auto salvage yard next door to Hall's operation, took in more than 5,000 vehicles at its various San Diego facilities. It has thousands remaining to be processed, said regional manager Joe Kellejian, a Solana Beach city councilman.

The vehicles turned in most frequently were Ford Explorers and Jeep Cherokees, but a surprising number of Lexuses, Mercedes and BMWs also ended up in their yards, Kellejian said.

Even after the parts are picked off, the vehicles go through an extensive recycling process, he said. They're crushed, then the metal from the frames and the engine is shredded into stapler-sized pieces and sold as scrap.

The fabric areas, including the headliner material that covers the inside of the vehicle's roof, end up in a landfill in Arizona, but about 92 percent of the vehicle is recycled, Kellejian said.

Call staff writer Barbara Henry at 760-901-4072.