I do not currently own a car that would qualify for the program, however I don't see how this saves the environment. The cost and pollution consumed by recycling a car and creating all the new parts that go into making a new car far outweigh any net fuel savings created by the process.
From a personal prospective my '79 C10 only gets about 10 MPG city, but it is far cheaper for me to keep it on the road (cheap insurance, cheap registration, cheap replacement parts...) than it would be for me to replace it with a newer pick-up that gets better gas mileage.
The third side is the government that is suposed to be helping the poorer people will be taking their affordable used cars and crushing them. Thus forcing them to either stick with the POS that they're currently driving or paying more for a newer vehicle where the prices have been driven-up by short supply.