Cash for Clunkers seems destined to own an unfavorable paragraph or two in future economic principles textbooks. This aspect is brought to my attention by frequent TPS commentator Jason Oberle. Here is his writing on the subject and here is an article he points us to from the Navajo Times.
Jason emphasizes the important role of salvage parts in "Indian Cars." Apparently, reservation life is particularly harsh on cars, so these vehicles are supplemented continuously with major parts from salvaged vehicles. C4C requires that the clunker being traded in is required to be destroyed. Jason suspects that, on the margin, this will increase transportation costs in Indian Country.